October 2014 Dinner with Damon

Last week Wednesday Damon and I had our monthly dinner. This was the first time having a dinner after he missed an Investor's Club (IC) meeting, so I had to fill him in on what happened.

I told him about the horrible time I had there, and about all the things I talked about in October's IC meeting post. We both agreed that the financing webinar was a waste of time, especially considering they had nothing under 75% LTV. We also agreed that from now on Damon has to go to the meetings if we are to discuss them. I get too frustrated and may have missed important information that Damon wouldn't have. Most of my “notes” were just complaints and rants about how the meeting sucked. I guess I know where I got that 2.1 GPA from.

We then started talking about Damon's plan to buy a Vacancy Bank (VB) property. He found a single family fixer-upper that can go for $15,000, and the neighborhood isn't bad at all. VB usually has cheap properties in crappy neighborhoods, but this was a rare find and I told him to pounce on it. He said he would put in a bid for 10K, then spend around 15K to fix it up for a total of $25K spent. After that, he can rent it out for $850 or $900 a month, clearing around $700 a month after taxes and water bills. It would take 3 years for him to make his money back ($700 x 12 months= $8400. $8400 x 3 years= $25,200). That's a yearly ROI of almost 30%, which would be fucking incredible. My only gripe is that it's a single family property, and I'd much rather invest in a two-family at the least. But the numbers work, so it's still worth the investment.

I told him I'd help with the repairs when I can and I meant it. I told him that I need to learn how certain repairs get made, and I want to use him as a guinea pig in case I want to get a VB property as well. If he can get it before the winter begins, that would make things easier. But he has to start the process now, and I have to keep on him to make sure he doesn't get lazy in his acquisition process. We had to end the dinner early because I had to take a dump.

P.S.: While Damon talked about the bidding price, he mentioned that he likes going to psychics, meditates, and reads tarot cards. In fact, he said he's sure the $10,000 bid will go through because a psychic told him so in a vague kinda way (as they all do). Whenever it comes to someone's belief system, I don't judge. Not everyone is like me. Everyone seems to need something to get through life, and as long as it doesn't hurt or annoy me I should be okay with it. To each their own, right? But I will admit that I may take some of his advice with a grain of salt if it comes a fucking psychic.