882 How Richard Roop Lost $6M in Real Estate and Bounced Back
Nearly everything I learned in real estate came from the marketing brain of Richard Roop. I used to drive a lot to work, and I hauled around his CDs in the back of my car to listen to on the drive to the office. After a hiatus, Richard is back to give some evergreen real estate advice, and to share his wild story of how he lost his real estate portfolio.\n\u201cI can get you that price, but I can\u2019t give you those terms\u201d is one of the phrases that Richard coined. As an early adopter of creative financing like subject twos or lease options, Richard taught his students how to engineer a variety of deals that would appeal to a seller.\nThe Baby Boomers drove the price appreciation over the last few decades, but they\u2019re starting to downsize. Richard predicts a long-term trend of flat or down for the next 10-12 years, and right now is a great time to control without ownership. Becoming familiar with lease options is a convenient way to own without actually possessing the property. Additionally, buying with long-term owner financing or getting in and out with quick flipping could be great options in the next decade.\nThe Ultimate Strategy is when you target homes in your area that are owned free and clear. By structuring phenomenal financing, you can get into nearly any of these homes. And as long as there\u2019s positive cash flow and you\u2019re paying down the mortgage, this will only be a winning strategy for you. But is it still a great strategy?\nAs a general warning from Richard: Get very good legal advice if you\u2019re soliciting private money. While he\u2019s still under a gag order from many of the events surrounding his years-long legal battle with the local division of securities office, he can give us enough details to offer a cautionary tale.\nWhat\u2019s Inside:\n\u2014As a transaction engineer, Richard loves figuring out the different ways a deal could be structured.\n\u2014There\u2019s no way you can buy bad if you have the right numbers.\n\u2014Richard\u2019s ultimate strategy is simple: Look for houses with equity.\n\u2014Is the Ultimate Strategy applicable for today\u2019s market?\n\u2014Why you should over-disclose for transparency\u2019s sake.
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