Newbies must understand FMV. Post 106

Coach Mitch’s REFLECTIONS

 

Starting out is scary

We always feel nervous when starting any enterprise or project. We are full of hope and optimism. We have visions where “only the good stuff” happens; where we come home with that BIG check; mama is proud, the kids are happy and secure, and the wife has an extra special treat for us.

Entrepreneurs know that we fail many, many more times than we succeed. It’s part of the equation. I have read that for stocks, we can handle six losses for each winner because when that seventh stock pick comes in, it will pay off all the losses and make us rich.

The wary survive

This idea, that we should plan for and accept losses is noxious. I have stated that, IMHO, the regular winners in stocks are those who have access to inside information.

I view putting monies into stocks, more like gambling NOT as investing. There are strategies which are expected to give a better chance of winning, but there is no surety of this.

I like “sure things”

As I see it, there is no downside if you are buying at 10¢, 20¢, or 30¢ on the dollar. Even if you are in a down market, you can always sell something at 50% of its current value and still make a hefty profit.

The difficulty is in finding the “deals”

• Finding the “deal” is hard to do if you are seeking stock “buys” or anything else. Try to find GE stock at 30% of its current value. Impossible.

• Try to find oil futures at 30% of its current selling price. Impossible.

• Try to find foreclosures with high levels of financing and only pay 30% of its current FMV. Impossible.

• Try to find tax delinquent situations where the owner will sell at 30% of its current FMV – highly probable!

So what’s an aspiring millionaire to do?

Talk to appraisers. Some will agree to give you a “ball park” estimate of value. They really know the areas. It only takes them five minutes to look up comps in their database and give you a “verbal.” These folks can be your best source of information. Make sure they get the appraisal order when your buyer gets financing. Remember, in my system, you won’t typically be getting bank financing so you don’t usually need appraisals.

There is no easy route.

REI takes a lot of work, persistence, dedication, heart – just like your J.O.B. (Just Over Broke) but it is worth every moment, from boredom to frustration to exhilaration.

Narrow the list

A central point of Coach Mitch’s “Ridiculously Simple System…” is to narrow the focus of your search for a great deal. A typical county can have 10,000 tax delinquent prospects. I show ways to hone in on those most likely to be receptive to you. This is a great time saver.

Willing and Able

The most important point of Coach Mitch’s “Ridiculously Simple System…” is to locate those tax delinquents who are Willing to sell at a ridiculously low price AND they are Able to sell at 30% of FMV because there is no mortgage on the property.

WoW!

See Coach Mitch’s “Ridiculously Simple System…” for details.

Best wishes,