What do you all think of the Rich Dad Poor Dad movement?

In Manhattan there are a ton of people cashflow 101 and investing in real estate in Buffalo and Philly. Below are two emails.

What do you all think?


Dear Friends and Cash flow Members!
I have not realized how much of an interest there was in Philadelphia
Investing within our community until I saw what a great turnout we
had for our last discussion meeting! But seeing such great interest,
I have decided to publish an answer I gave to one of my potential
investor about the types of deals that I handle in Philadelphia:

But first a little rant about Philadelphia:
Philadelphia housing situation is very affordable in comparison to
our New York City and vicinity. However, as this is a very loosely
kept secret, investors from New York, New Jersey and as far as
California are purchasing properties at a great rate. Better
neighborhoods in North Eastern Philadelphia such as Mayfair,
Wissinoming, and Oxford Circle have appreciated over 30% within the
last three years. The same is happening in the North West. Some
bargains can still be found there but more time and effort is
required.

On the other hand, Western and Eastern Philadelphia are investor hot
spots in rehab, tax lien or foreclosure properties. Every month,
Sheriff's Department is selling these rehab properties and there
are
two auctions next week. I am in Philly all this weekend selecting
properties for my investors. If anyone is interested in getting
together and seeing some properties please call me at 917-863-4235

Physically, most of the city is comprised of 2 or 3 story row houses,
usually made up of three bedrooms and one bath. There is also a full
basement, usually unfinished. The load bearing walls are usually
brick. Sometimes these houses have wooden shed kitchens or
attachments. Usually these houses range from 900-1300 square feet.

There are several things to look at in Philly:
1) Cash Flow Deals: Pick up houses for 40-70k, depending on the area
and rent them. If chosen wisely, you will have a positive cash flow
and a good possibility of appreciation in the future. Usually 5% or
10% down plus closing costs is more than enough if you have a decent
credit score. You can likely get into this type of deal for about 9K.

2) Rehab: Get a shell house for 10-20k and add another 20k for
repairs, house will appraise for 40-50k+. Cash out refinance and turn
it into a cash flow deal similar to above. As a result you have
practically no money in the deal anymore and a possibly an infinite
ROI.
Ex: Total Investment after rehab 40k
Appraised value 50k
Cash out refinance @80%LTV 40k
(you got your money back)
Rent $750
Mortgage for 40k at 6.25%-$246
Taxes and Insurance -$250
Cash Flow $206/month

3) Tax lien flips: purchase tax lien properties for 10-20k each. Sell
them within 2 months to other investors for 40% mark up. Will need a
little clean up, but not much.
Risks are that we are not going to be able to move them with in 2
months. If so, we turn them into deal 2 above. Some risk, but great
returns as you only need to put up 10% which will hold the property
for 2 months.

4) Foreclosures: Similar to 1 and 2 above. Usually purchased for 65-
75 cents on the dollar. Starts at about 40k.

Philadelphia Sheriff's department is selling close to 300
properties
at a tax lien sale during two auctions next week. One is on Tuesday
and another on Thursday.
I am going to be in Philadelphia this whole weekend starting with
Friday PM in order to examine some of these properties. If you are
interested in coming out I would be glad to spend some time with you.


The next is about Buffalo


Greetings FUTURE FA$T TRACKER$,



On Friday, January 16, 2004, I flew to Buffalo, NY.
On Saturday, I visited 25 properties with .... I narrowed down 5 that I liked.
On Sunday, I went back to look at the 5 properties I liked with Properties to get a rough estimate of the rehab work needed. Later that day, I made offers on all five properties.
3 offers were accepted and I went to contract on all three.

Estimated Cashflow for ALL THREE COMBINED: $950.00- $1,050.00 per month


Property # 1:

Legal 3 Family
Closed on 02/19/04
Renovation completed on 03/10/04

*Estimated Cashflow: $400/month Positive
Status: Secured tenant for top floor, 2 more to go. Currently working on Cash Out Refinance to get back capital outlay.
Partnership:

Property # 2:

Legal 2 Family
Closed on 02/27/04
Renovation completed on: (Currently on or about midpoint of completion.)

*Estimated Cashflow: $250-300/month Positive
Status: (Halfway through renovations)



Property # 3:

Legal 2 Family
Closed on: Scheduled for 03/19/04
Renovation completed on: (Scheduled to begin on 03/22/04)

*Estimated Cashflow: $300-350/month Positive
Status: Scheduled for closing 03/19/04
Partnership:


Many thanks to the Properties TEAM for helping make this happen.