All Forum Posts by: Aaron Mazzrillo

A better question is, "What area of my city is the best for purchasing multifamily housing?"

Have you contacted the building department and asked if they will even let you put an RV park on your property? You may have to go through a zoning change. If I were looking to do something insane like build and RV park around my house, that is where I would start. 

This is an easy one. You tell your greedy friends that knowledge gets profits, money gets interest. You pay them a flat rate of 8-10% interest only. Otherwise, call up one of a dozen hard money lenders, Anchor Loans is a good example (I am not affiliated with them in any way shape or form) and borrow money from them at 8-10%.

In regards to what the others are saying, I don't know your state's laws. You need to research it. If it is not an issue, have escrow draw up an assignment agreement. They put your assignment on the HUD of the buyer only and it becomes a part of his closing costs. They can add a one line item "marketing fee."

I heard evictions are fast in Arizona. I'd get her out before the BS thingy shows up.

My buddy who used to own one of the largest hard money loan companies in he US, he has since sold it, rehabbed a church to turn into a home for himself. It was beautiful when he finished. I think it was in Texas. I asked him about it and he said it was one of he few deals he ever lost money on. 

I didn't read your full post, but I just wanted to throw out the info I had in relation to churches and doing deals.

You should definitely see the contract. If you are OK with it, have escrow type up an assignment agreement with the fee stated. You'll be obligated to perform per the contract once you sign that assignment.

@Alan Brown I buy dozens of houses every year and I don't use a dime of equity in any of my existing portfolio. 

There was a time when I was struggling with mounting debt and little deal flow. I had done exactly what the OP had done; taken multiple HELOCs on my rentals to buy more rentals. I called another mentor and told him my challenge and how I thought I might fix it - borrowing more money. He said to me; Aaron, never borrow your way out of a problem. Think your way out of it. So that is what I did.

My portfolio could take a 50% loss in value and I'd still be fine all because I don't use my existing properties as ATMs to buy more properties. This also keeps me from doing marginal / bad deals since I have to work out solutions to acquire new houses using new money, notes or terms. 

I know lots of investors who have much higher net worths than mine and many more properties, but what they also have are millions and millions of short term balloon notes securing all those houses. If the market stays strong, they'll look like geniuses, but if it flattens or slows down, they may be helping me pick out a toilet next time I go to Home Depot.

Investing in Bitcoin is investing in something that is based on nothing more than limited quantity. It has no other value. I personally know people that are financial imbeciles preaching "Buy Bitcoin!!!" Taking financial advice from people who have made a life of consistent bad financial decisions is never a good idea. Are they suddenly geniuses and know something I don't? No, they are swept up in get rich quick scheme that is Bitcoin. They won't cash out. Not even a little for fear of losing that upside opportunity and that is how they will all get wiped out.

What does a cup of coffee cost in Bitcoin? You can't answer that because Bitcoin is worthless and the value (based on some other government backed currency) keeps going up. 

It will continue to go up until it doesn't. Then it is going to be a tsunami of sellers and a bunch of idiots on the news crying that they got ripped off by much smarter people who at some point will decide they've made enough money off the commoners that it is time to dump it. This isn't new. History repeats itself again and again and again.

Should you invest? Up to you. It's your money. Jump in and ride it for a while. Just don't get greedy. This train is going to crash and there is going to be blood in the streets. It always does and it is going to make for great news when it happens.

I'm jumping on the misleading post bandwagon. Equity stripping another property is a far cry from $0 down. It is your funds because you are paying that $50K back out of your rental income that you no longer get to pocket. Not only is it not $0 down, but you're paying interest on it so it is going to cost you a lot more than $50K by the time it's paid back. 

When I got started, a very successful mentor told me to never leverage up your assets to buy more assets. It looks like a great deal in a good market, but a downturn and suddenly you're stuck with a bunch of over leveraged stuff. Each deal must stand on its own. I think that is extremely wise advice. Stripping equity and leap frogging deals was a huge part of the meltdown in 2006. So many uneducated people buying houses, refinancing them and stripping all the equity out so they could buy more houses, or boats, TVs, etc.