Anyone want to buy my house? - PeachParts Mercedes-Benz Forum

TylerH860 · #1 10-07-2009, 11:17 PM

Quote:

Originally Posted by Brian Carlton

It's not on the line........the cash is not yours.

If that house doesn't sell for two years.........you're simply going to wait until it does.........no loss on your part except the time value of someone else's money.

One day.......you'll understand the distinction.

His reputation is on the line. Whoever his backers are won't be so willing to support him again, unless its Mommy and Daddy perhaps. Rarely do I see anyone solely backing their own ventures anyway. Most find investors, partners, or banks willing to take a chance. Maybe you have a little more insight into what Hattie is doing, but it seems to me he is risking his reputation and the future of his career.

You've been awfully hard on the poor guy recently. There are other forum members that can't differentiate their family's success and money from their own. It seems Hattie is trying to take his fortunate background and working hard to get to the point when he no longer needs it. Unlike others, who define themselves by it and think they can just live off their successful parents forever.

My father wouldn't be anywhere near the success he is without my grandfathers help, and connections willing to put money on the line for his ventures. I still have a somewhat connected umbilical cord, but don't plan on making it permanent, nor do I think I have any less concept of the value of the dollar because of it. I understand how fortunate I am, don't choose to live a lie that I have anything to do with anyone else's wealth , and plan to become less and less dependent with time. Does that bother you?

Brian Carlton · #2 10-07-2009, 11:33 PM

Quote:

Originally Posted by TylerH860

His reputation is on the line. Whoever his backers are won't be so willing to support him again, unless its Mommy and Daddy perhaps. Rarely do I see anyone solely backing their own ventures anyway. Most find investors, partners, or banks willing to take a chance. Maybe you have a little more insight into what Hattie is doing, but it seems to me he is risking his reputation and the future of his career.

You've been awfully hard on the poor guy recently. There are other forum members that can't differentiate their family's success and money from their own. It seems Hattie is trying to take his fortunate background and working hard to get to the point when he no longer needs it. Unlike others, who define themselves by it and think they can just live off their successful parents forever.

My father wouldn't be anywhere near the success he is without my grandfathers help, and connections willing to put money on the line for his ventures. I still have a somewhat connected umbilical cord, but don't plan on making it permanent, nor do I think I have any less concept of the value of the dollar because of it. I understand how fortunate I am, don't choose to live a lie that I have anything to do with anyone else's wealth , and plan to become less and less dependent with time. Does that bother you?

You've had a connected umbilical cord for years and, therefore, you're in no position to state the value of someone else's money.

I definitely take the position that you have less of a concept of the value of a dollar until you risk your own money.

It absolutely does not bother me that you have resources other than your own, however, you cannot state that the risk is yours when you use those resources.

My father had nothing.........earned a maximum of $20K in his last year of work..........

Hatterasguy · #3 10-07-2009, 11:40 PM

Well it is different when its not your money, but it doesn't mean their is no risk for you.

Personaly I look forward to the day when I do it on my own and only need partners if I want them. I am very grateful of the help I have gotten, and if you look at the background of a lot of successful people in real estate they did have a little help getting started and along the way. I still would have done it on my own, but now I can skip 10 years worth of hard work to save up the initial capital.

Next year I plan on buying a multi family in conjunction with my dad, but I'll be a 50% partner putting half of the cash up, and having my name on the note.

Brian Carlton · #4 10-07-2009, 11:52 PM

Quote:

Originally Posted by Hatterasguy

Well it is different when its not your money, but it doesn't mean their is no risk for you.

Personaly I look forward to the day when I do it on my own and only need partners if I want them. I am very grateful of the help I have gotten, and if you look at the background of a lot of successful people in real estate they did have a little help getting started and along the way. I still would have done it on my own, but now I can skip 10 years worth of hard work to save up the initial capital.

Next year I plan on buying a multi family in conjunction with my dad, but I'll be a 50% partner putting half of the cash up, and having my name on the note.

I agree with your approach.........you can gain a lot more traction with help and resources from others.

My only comment is that the pucker factor when others are involved is simply not the same as when it's all on your shoulders.

Someday it will be all on your shoulders, and, hopefully, at that time, one single empty house won't be an excessive burden.

The worst thing a builder can do is overextend himself..........because he's supremely confident that he can sell anything that he buys or builds.

Hatterasguy · #5 10-08-2009, 12:01 AM

Quote:

Originally Posted by Brian Carlton

I agree with your approach.........you can gain a lot more traction with help and resources from others.

My only comment is that the pucker factor when others are involved is simply not the same as when it's all on your shoulders.

Someday it will be all on your shoulders, and, hopefully, at that time, one single empty house won't be an excessive burden.

The worst thing a builder can do is overextend himself..........because he's supremely confident that he can sell anything that he buys or builds.

Your right, the plus side of having it all on your shoulders is the profit is 100% yours as well. Do well or fall to hell its all in your hands.

The overconfidence is quite deadly and I know a builder who is marching into it right now. You start to think you can't lose or make a mistake, I have to watch this.

Right now I'm going to take a page out of my Grandfathers playbook. He made good money throughout his life and never got in trouble. He just found good deals and built a few houses a year. Never putting up more than he could hold if he got stuck owning them. Thats what this house I'm doing now is, if we got stuck with it, we can afford that. Their is not *that* much money tied up in it.

Another problem builders run into is they make all their money at once so they spend it on stupid crap....cars, boats, vacations, planes, etc... Than when the markets get bad and they can't sell anything, they go belly up. Starting next year I plan on putting most of the company's profits into multi family's. Taking only the bare minimum out to live on. I plan on buying at least one a year and eventualy trading them up for larger multi unit properties. Hopefully I can set up professional management before the tenants get to me.

The idea is that I can live on the cashflow which would be very nice getting checks every month, as opposed to a couple times a year.

Brian Carlton · #6 10-08-2009, 12:27 AM

Quote:

Originally Posted by Hatterasguy

The idea is that I can live on the cashflow which would be very nice getting checks every month, as opposed to a couple times a year.

If you can ever get to the point of living on the cashflow from rentals........after the mortgage, taxes, utilities, advertising, insurance, repairs, and managment have been paid.........I'll buy you dinner.

My opinion is that this will never happen unless you hold them for 20 years and payoff the mortgages.

Fulcrum525 · #7 10-08-2009, 12:29 AM

Quote:

Originally Posted by Brian Carlton

If you can ever get to the point of living on the cashflow from rentals........after the mortgage, taxes, utilities, advertising, insurance, repairs, and managment have been paid.........I'll buy you dinner.

He's going to need a lot of units to do that...I think your wallet will be safe for quite some time.

Oh, and its management

Hatterasguy · #8 10-08-2009, 12:31 AM

Quote:

Originally Posted by Brian Carlton

If you can ever get to the point of living on the cashflow from rentals........after the mortgage, taxes, utilities, advertising, insurance, repairs, and managment have been paid.........I'll buy you dinner.

My opinion is that this will never happen unless you hold them for 20 years and payoff the mortgages.

Thats the key, I'll let you know if I an figure it out.

For me though it is a long term plan, I'm looking at the next 25 years.

kerry · #9 10-08-2009, 12:42 AM

Quote:

Originally Posted by Brian Carlton

My opinion is that this will never happen unless you hold them for 20 years and payoff the mortgages.

My rule was no mortgage over 10 yrs. No units farther than 4 blocks from my house. Try to do all maintenance on the principle of 'must last until I'm dead.'

Fulcrum525 · #10 10-08-2009, 12:23 AM

Quote:

Originally Posted by Hatterasguy

Personaly I look forward to the day when I do it on my own and only need partners if I want them. I am very grateful of the help I have gotten, and if you look at the background of a lot of successful people in real estate they did have a little help getting started and along the way. I still would have done it on my own, but now I can skip 10 years worth of hard work to save up the initial capital.

The best partners are the silent ones who let you handle getting the job done