Regarding yesterday’s feedback from Kenneth Thomson, Gnomie Tony G writes:
I can understand why Kenneth Thomson is retired… he went broke.
I’ve also been in the real estate business – for 30 years, mostly dealing with small investment property. The bottom line… a “professional investor” couldn’t care less about any “gross income” rule of thumb. The only thing that matters is NET OPERATING INCOME, i.e. what am I left with after expenses. “Rules of thumb” regarding gross income were cut off at the wrist about 25 years ago because they were always completely useless.
I checked out the REOG program and found that it could be a very useful tool for anyone wanting to buy small investment property.
I’m surprised you would even include Mr. Thomson’s opinion regarding this program without checking things out further. We all know what “opinions” are worth… and Kenneth Thomson sounds like just the person who would epitomize that old line.
This REOG program might not be the best such software on the market, but it certainly doesn’t deserve the title of “scam.”
Mike Farrell writes:
Excuse my stupidity.
“no professional investor would pay more than 85 times gross monthly income for a property.”
If the gross monthly income was $1,000, the professional investor would only pay $85,000 for the property.
Unless the retired real estate broker based his numbers on gross “annual” income, which would put the property in the $1 million plus price range.
Beware of “free” information, because oftentimes it is worth exactly what you paid for it.
Zip. Nada. Nothing.
On the other hand, if he can produce $1,000 per month income on a real property selling for $85,000, I’ll give him a reason to “unretire.” I’ll put together a consortium to purchase 500 of his $85,000, $1,000 per month income opportunity moneymakers.
[tags]real estate, reog, scam, investment, property value[/tags]