Loss! Fear of Loss! What’s the big deal?

Hey Folks,

Sorry for my absence here somewhat lately. Been working diligently on some things, and frankly, dealing with some loss. Even though I am a relatively positive person, I am human, and can get down on occassion. I told my wife tonight, I wanted to work on a new article/blog post, and get something up for the readers. I had several ideas to cover and discuss, and then asked her opinion. She said, “Jim, you’ve been talking about loss all week, why not cover that?”

She, as always, was right on the mark. Two reasons really……..at this time in our country, there are enormous amounts of folks experiencing loss. Financial, and emotional, often times tied directly to one and other.

Me personally, recentyly, I lost a pet. I know, to some, this is not a big deal.

However, to most who are animal lovers, they know, losing a pet is losing a family member.

A few weeks ago, we put to rest our beloved Ike, he was almost 9 years old, a half black lab, half german shepherd dog. Working at home over the years of his life, I spent a lot of time with him. Even more so over the last couple of months while helping him try to beat his cancer. Of course,in the end, we lost that battle, but, we did manage to give him more time than the vet originally gave him.

While dealing with Ike, and his illness, I went thru many ups and downs emotionally. Trying to balance his tolerance for treatment, versus the effectiveness…..while trying my darndest to not be selfish. I basically relied on him to tell me when he needed things, and what to do. I made the right choice, as in the end, Ike told me it was time to go. He went peacefully and in my arms.

During all of this, I also tried to maintain my business. For me, this meant not only completing daily tasks that needed to be done, but to also work on new things. I’m always doing what I have done previously to make money. (repetition and consistency, the two keys to being successful)

 However, I am also always trying new things as well. My mind goes numb if I don’t apply myself toward new ideas, ventures, and adventures. This is what Real Estate Investing has done for me. I have the time, and frankly, the network, to seek out new businesses, ideas, etc.

This has been my focus lately, seeking out non-performing businesses, and see what it would take to turn them around…..then buy them and do it. My main issue frankly, has been getting enough capital for some of the projects we have in mind. I’d rather not look into buying smaller mom and pop type businesses, because they are time intensive, and require the owners presence and work, to profit.  In doing this though, I’ve realized, I’m losing out on some good opportunity. Rather than look at all businesses to purchase and keep for cashflow, why not buy them, and sell for cashflow.

Just like with houses, buy the businesses with seller financing, and carry paper as a wrap situation, to create profit/cashflow.

This brings me back to loss. In this economy, many folks are losing things, jobs, houses, businesses, cars, etc. The thing is, in this group of folks, many can afford other things, just not what they have now. Bare with me here, I’m getting to my point.

Example: Say Joe and Sally are employed, but, Joe lost his job that paid more, and now works for half of what he used to. As a result, they have lost their extra car to repo, and can barely make their house payments. They are thinking of renting, because they can afford to pay monthly, $400 less than their payment, and they will be okay. The problem is, in this market, to sell their house, they will most likely break even at close, if they can maintain the payments until the house sells. This is not a garuntee, as houses are taking months to sell in their price range.

Now, in the same school district, Bob and Betty are having the very same issues. Except, Bob and Betty have a house payment that is quite a bit less than Joe and Sally’s. The house is smaller, but still has 3 bedrooms and 2 baths.

Do you see what could happen here? I do, and this is one of the projects we are working on. I have my lawyer looking into this, because we need to most likely take ownership of these homes, and then sell to make profit. We cannot simply bring the parties together, because that would be brokering. I also see taking ownership as another way to increase profit.

Sort of a hybrid house trade program, accept we’ll basically offer to buy each house, subject to, or some creative method, then resell to folks who have income substantial enough to cover expenses and our profit.

Actually, the more I think about it, this will most likely be the way we market the program for buying. Not foreclosure prevention or avoidance, just a way to downsize to something affordable.

Pretty much working with the attitude change I’ve witnessed occuring in our country lately. Everyone pitching in to help where and when they can, as well as reaching out for help when times are tough.

I’ve done this type of thing before, but never really put it out there as a special program. Several houses I bought over the years, when the seller’s moved out, they moved into one of my rentals, or a rent to own house they could afford.

I even carry paper on a few now that are owned by folks who sold me their old homes.

Besides, the federal government is offering all kinds of neat incentives for folks to buy houses………and that does not mean they all need to be conventional sales.

Let your mind ponder this idea, and feel free to post up…………I’m much further along with this idea than indicated here, but wanted to throw out the original idea for some feedback, and discussion.

Loss? We all go thru it, it’s where and how we land, that makes the difference.

Me, I miss my Ike dog, every day, but don’t let it stop me from moving forward, and trying to help others who might be experiencing loss, or fearing it, to not just survive, but thrive after the fact.

See ya next post, keep the shiny side up, rubber side down,

Jim

The Biker Who Buys Houses