All Forum Posts by: Tony Tomasek

Brandon,

My father and I have bought one property on land contract and sold 2 on notes. As far as if this is a good strategy to cash out to 80% before a contract sale, that depends on if the 80% LTV is in current conditions or not. If your contract collapses, and you need to sell quickly to pay off the note, can you sell and recoup the money in today's market? If not, be careful. Paying off personal debt with equity could be ok, but this is money you will not be able to put into your asset column and have it generate more cash flow and income. However being debt free is a great feeling if you are still. As for the legality of it, or if your bank would have a problem with it I dont know.

Greg,
Welcome, I am interested to see what your niche is as well.

How do you plan on making contact with prospects? If by phone calls, being a realtor will be in conflict with the "do not call list". Just a thought

Hi Bob,

Welcome, and good luck. You have a sound plan, just proceed methodically. I would recommend that you also look at ways that generate cash quickly. Flips, wholesale deals, etc. Use the cash to pay off the properties quicker and get more done. Dont listen to the naysayers... this will work if you put the effort into it and proceed cautiously at first, but optimistically and then move quickly as you gain experience and a good team. Good luck!!!

I agree, nothing is more valuable than building up a network. Start at the REI clubs asap and ask tons of questions. Not to worry about not knowing it all, we all knew nothing at one time. Good luck, feel free to pm me if you have any questions.

Welcome, and good luck in all your ventures. Keep increasing your financial IQ and never give up. Feel free to PM me if you need anything

Ok I understand that many people will get the short end of a dirty stick in this bailout. However consider this: 30-35% or HIGHER unemployment was looming on the horizon. Bank failures would have been widespread, and as a result companies whose business models depend on the financial markets liquidity would go under. This is more widespread than most people think. Talk about accelerating a downturn!! No this bailout was not intended to bring and immediate turnabout to the the real estate market. It is meant to provide stability to a seriously overleveraged industry. Like it or not, this bailout is necessary. Those people with money must choose to allow the bank to borrow it and relend it. Without the necessary confidence in the system, everyone in the know would have parked their money in gold or oil or another hard asset, and the financials would have no captial at all. This was evidenced by the run on money markets and the major upswing in gold.

We are no longer an isolated economy. This would have worldwide implications. Europe is already feeling the pinch, and Russia, India and China are grabbing control of important commodities.

Yes people that can afford mortgages that are in a negative equity position are going to feel taken advantage of. However, they were the ones that chose to purchase during the height of a bubble. It did not take a rocket scientist to see the buildup.

Inflation is going to be a problem forever. We have a currency. By definition it is constantly devaluing. The inexorable march to zero moves on unabated. Take a look just one time at the purchasing power of the S and P 500 versus the purchasing power of an ounce of gold over the last 30 years. One goes up (gold) and one goes down (stock).

My point is that this system has many flaws but it's massive failure would cause way too much hardship for the world in general. Those that call for a market to regulate itself alone should take a long hard look in the mirror before calling for regulation of lending practices Oh and by the way... there was and never will be at any time a "free market". Socialism is not lurking around the corner.

I really dont have much experience in the lease option area. You may be able do a land contract... but Im not sure. My experience with owner financing has only been limited to taking notes myself and I have bought on land contract. What I have read is the lease option is one way to get around the "due upon sale clause" and yes I believe you could then reoption it to someone else if that is what you mean. But I would verify that. Sorry I cant be of more help.

Yes, try the 50% rule at first and then save like heck until you are holding 6 months operating expenses. Of course you should verify all numbers prior to making an acutual offer (i.e. if you figured insurance to be $100 a month and it's really $200, your viability could go out the window.)

I agree with Jon. Also be careful with Zillow there are many homes in Indiana that are very inflated on their site. I dont trust their math very much. Properties appraising for 65K that zillow had at 119K. Too big a swing for comfort.