"100% of people who do not save money do not have any!"--Dave Ramsey

[JSH]

Originally Posted by Xist

The mom of a client said they just refinanced and their new payment is 37% higher.

She was more excited about that than I was.

That sounds like a refinance from a 30 year to a 15 year mortgage or a refinance with a big cash out.

Originally Posted by Xist

To whom do I listen on YouTube?

Joe Scott?

Verisatium?

Linus?

Ah! Homemade Home!

No, he explains how to spend a month finding a distressed property, 6-12 months fixing it up [full-time], and then renting it out.

I don't know what I am missing from my own YouTube history, you tell me!
.

None of them?

I don't know your full YouTube history - just the multiple videos you have shared with various get rich quick schemes. I believe I said the same thing on all of them: "If this scheme is so foolproof and easy why isn't the author of the video actually doing it instead of selling you on how to do it?"

Some with Homemade Home. I quick look shows he is selling a book - Cheap Homes along with trying to build a YouTube following and make money that way.


The page for the book says:

I bought my first house when I was 24, years later I own many more and don't owe a dime. In this short book, I go over how I find houses that I am able to pay cash for, most of which are around $10,000. I skip the fluff and get straight to the stories of how I did it. I also go over how I negotiate prices, even with owners not trying to sell their house. For the cost of an overpriced coffee, you can pick up some basic knowledge that could put you on the road to financial freedom.

Nonsense. How many $10,000 houses do you have to pick from around you?

Some Amazon reviews of his book:

Very generic feel good material. No actual insight into the intricacies of real estate. To sum it up in 2 words "be proactive"

33 pages of anecdotes and every "deal" he talks about is summed up by "I got lucky". He uses math at insane rates to show you how much you COULD be making, but none of it is realistic. Save your money for the house you want to buy in the future.

[redpoint5]

Home prices should essentially follow inflation and if they are exceeding inflation then that indicates a bubble. Bubbles don't always burst though, because pricing can be corrected by flattening out and allowing inflation to catch up. That's why your primary residence really shouldn't be considered an investment.

You provided no detail on how a refi is 37% more expensive per month. They could have gone from a 30 year to 10 year loan. They could have added taxes/insurance to their escrow. They could simply be making more than minimum payments on the principal. Lots of lots of ways for a monthly payment to be more or less.

[freebeard]

Don't know Handmade Home, but it sounds like the opposite. He should beign with window glass, nails and an ax.

A [Dymaxion] house should cost no more than a [Dymaxion] car.

[Xist]

Big cash out.

I don't remember me or anyone else sharing any get-rich-quick schemes. However, I remember us agreeing that if one worked better than selling a plan they would do it, not teach it.

I bought Homemade Home's ebook.

It was $5. It wasn't earthshattering, but I wouldn't expect that for $5.

Did that guy get lucky?

He has bought and fixed up several houses this way.

Did he get lucky several times?

He says over and over that home prices in his area may not be representative of other areas, but the same rules would apply.

World Population Review says that Mississippi is the cheapest state for buying a home, but I cannot find any sold home data. I tried Zillow, Redfin, and other sites. It shows sold houses, but no prices.

Here is a 4-bedroom, 2-bath house with 1,450 square feet for sale in Gulfport for $99,000. It has been for sale for 31 days, so clearly it isn't even worth that much.

It looks like they bought it for $30k and are attempting to flip it, so yes, I can imagine scouring that city for an abandoned house, finding out that the person who is supposed to own it never received the title, and then needing to track down the title and paying back taxes, then buying a small home for $10k.

I am sure that an abandoned house in California would go for more than a remodeled house in my area.

[redpoint5]

Doesn't seem like the cheapest property to me. I bought 4 units for $63k in Oklahoma. I remember getting a steak dinner at a restaurant for like $9. I'm sure 15 years later prices have gone up, but still.

[JSH]

Originally Posted by Xist

He says over and over that home prices in his area may not be representative of other areas, but the same rules would apply.

No, the same rules don't apply. The house has to be worth so little that it isn't worth the owner paying the back taxes and then selling it for more than you offer. How may people are really going to sell a house for pennies on the dollar after you track them down and notify them that they own a house?

All the house flipping or renting get rich quick schemes are the same. They start with finding a house that is massively undervalued and then buying it. The problem of course is finding the house that nobody else knows is massively undervalued - and then doing it over and over again.

Outside of being able to consistently finding amazing deals that nobody else in the business knows about the other way to make money is to buy a property that needs a lot of work and then buying it and fixing it up. Of course if your full-time job is buying houses, fixing them, and then selling them you are a contractor. That is a completely different idea than the dream these people sell about building passive wealth with almost no money or time.

[Xist]

Can everyone that inherits homes pay the taxes on them?

How is spending a year finding a home, fixing whatever problem the rightful owner had, and then fixing it full-time get-rich-quick?

I finished my paperwork and my brother's financial report. I don't trust the airport's schedule, but what more do I have? People keep saying to just loiter here for hours, but why do that when the schedule only shows 0-4 flights a day?

There was supposed to be a flight last night, but I think it was delayed until this morning. There was supposed to be a flight half an hour ago, but now it shows a turn-and-burn at 11:44.

I drove down the previous street and I do not like this neighborhood. Many houses look abandoned and one burned down.

I bet that I could find a place here delinquent on taxes, but for all I know the person who is supposed to own it will say "No lowballers! I know what I got!" and turn down their only offer.

[Piotrsko]

Learn how tax lein sales work: typically there is an auction on a public place where you bid your price and it's run by a municipal government. High bidder generally gets immediate title and sometimes the right to evict with no 30 day notice depending on jurisdiction. Sometimes you can preinspect, mostly not. Popular 20 years ago during that depression, and back in '08 after the housing crash.

[freebeard]

Bestest example was when the IRS auctioned off Willie's farm and his neighbors blocked the roads so no shills could bid it up.

https://www.savingcountrymusic.com › 30-years-ago-irs-tries-to-sell-willie-nelsons-memories-fails
So after the November 1990 raids, nearly everything owned by Willie Nelson was on the auction block the final week on January, 1991, with the IRS seeking the highest bidder. The federal government first put Willie's 44-acre Austin-area property on the block on January 26th. He'd purchased the plot from the doctor that had delivered him as a baby. But unfortunately for the IRS, no bidders emerged. Not even one. So on subsequent days, they continued to offer the 44-acre property with 2-story house and horse stables to the public at an incredibly low starting bid. Still nobody showed up to purchase it, and no bids were entered.

[Xist]

What happens if I find an abandoned mobile home and convince the owner to sell it? I pay $10,000 and how much would I owe for someone else's taxes?

If the fire department will help demolish it for me, I still need to demolish the rest and haul it off.

How much would it cost for a razed lot with utility connections, surrounded by other abandoned mobile homes?

Even if I can do this five times and finance new mobile homes, there would still be too many abandoned mobile homes in the neighborhood.

How much training does the fire department need?

However, how often could I do this?

I don't think everyone would accept $10,000 instead of continued tax bills.

People often don't make sense.

If I could do this five times, I doubt I could manage it more than once or twice a year.

Firefighters training twice a year sounds more reasonable.