All Forum Posts by: Aaron Junck

Can you get a 1st mortgage from the owner on CFD and then get a 2nd mortgage for 60/80k to get them their money they want?

What area of REI are you interested in pursuing? That answer would be the start of the direction you should start out. I.E. flips... network with someone that does a ton of flips and see how you could benefit them ..

Also on another note. Line up any potential credit lines(personal, HELOC, etc.) prior to quitting your w-2 J.O.B. After you quit and your self employed qualifying becomes harder when going conventional.

My 2 cents, for what its worth, is whatever your used to living off of , double it . Whatever that figure is that would be net not gross. 

For being self employed for 15 years now, I have learned a lot about being self employed.  There will always be something that pops up and once you become self employed the last thing you want to do is to go back to work for someone if something turns south. So my 2 cents are double what you currently bring in from your w-2 (if thats what your living off of exclusively).

Yep, I follow. 

I think it will mainly boil down to selecting the right person for the job that is motivated and eager to be an apprentice and has the understanding that while learning the trade he/she will make a nice income while earning equity in a business. 

Are you familiar with ESOPs?

I love the route your going and have for years felt that people should be paid based on performance with a base.

I am not 100% sure but it almost sounds like a similar structure to an ESOP. I wish I knew more about (employee stock ownership plans), but I have only briefly read up on them.

The issue I have seen 1st hand, in construction especially,  is you teach someone the trade and then when you have them trained the way you want; to the point that you could leave the jobsite and be confident things get done correctly; they whine that they aren't making more money. HELLO I just paid for your schooling. I would like to recoup some of my investment.

Most on BP talk about the 2% rule meaning if you buy a 100k property it should gross 2k a month in rental income.

For me this is a very hard find in my market and by the sounds of it in a lot of markets. Its not mandatory, however a guideline. More realistic is a 1-1.25% around here. So for that same 100k property my current market would return around 1000-1250 a month. 

Most started out saying that if you can get 1% that you should be able to make the numbers work. 

In your scenario your pushing .5% which will be even hard to pay debt service alone. Is this a class A property? I have seen properties around here that are 300-400k that rent for 2500 a month. I personally wouldn't do that unless I had a property and had no other options next to losing the property.

@Al 

@Al Mcbee undefined You file the option of memorandum with the county to cloud the title that way the seller cant go and borrow against the property. 

As far as the end buyer/tenant they cant borrow against it bc they don't have any ownership in the property just an option to buy it within a certain timeframe for a certain price.

If I am understanding what your trying to do is find someone that has great credit  go out and apply for a credit line for you to use and then you give them a little profit for doing so. ..

If this is correct you will have a VERY hard time finding someone to do so unless you have a proven track record of what you want to do. Those that have great credit and the ability to get credit have it bc they managed it wisely. They will be less likely to allow someone that has shown poor money management to mess up their credit.

"When someone wants/needs credit they seldom can get it, on the contrary when someone doesn't need/want credit it is very much available in most cases."

Need more details to give an offer. 

How much rental income ? 

How much deferred maintenance and rehab is going to be needed to be done to value it at 320K?