All Forum Posts by: Adam V.

Credit cards can really get you in trouble early on; I wouldn't view them as a tool for the early investor.  If you have to resort to credit card debt or personal loans to replace stoves/furnaces/dishwashers etc.. then you are already in a bad situation.  Plus credit cards wont pay for a tenant who stops paying.

I'm currently negotiating a seller financed wrap around mortgage for 12 months on a property I intend to rent out. Normally I would get a landlord's insurance policy on the property but in this case I'm concerned the DOS will be called when the seller's lender sees a change in policy. The seller does have a typical homeowners policy on the property.

Couple of questions:

What do most folks who do Sub 2 and wrap around deals typically do to avoid this? Would my umbrella policy suffice for 12 months? Can I still get a Landlord policy in my own name without notifying the seller's lender? Is 12 months too short to worry about DOS?

401k is just another way to diversify, especially w/ employer match.  A lot of stock-happy investors will say you can diversify simply by owning tech, agriculture and bio fuels etc.. its all the same to me and its all speculative IMO. Its also locked up until at least 55 yrs old.. i want to be free much earlier :)

I look at my 401k as a retirement present, not my retirement plan.

Bob should sell both SFH, pay off his bad debt(50k), put 20k aside for emergency funds. Take the 50k-70k he was GOING to use to fix up the Apt complex and buy a rental or 2 to start generating cash flow.

Ultimately Bob needs more education on Taxes and financial planning before he should jump in.  Bob can get burned bad.  

You've got a LOT on your plate and only you can judge the family dynamic that you'll be working within but IMO you want someone you can dictate to and expect them to fully comply; if they don't they get replaced.  That's not so easy when family is involved.  

FWIW I'm more in your situation with full time job etc so I started with rentals to build up my reserves for larger deals.  But a good set of rentals will always provide cash flow, and almost guaranteed equity in 3-5 years (unless you blow the initial deal).   Flips can be hit or miss.  

in my experience it depends a lot on your credit score and quality of your backup documentation.  The lower you rate the harder a rep has to work to find products to match your qualifications.  Higher rated borrowers qualify for more products and then its just a numbers game. 

Ultimately a good local rep should get you a decision in 3-5 days MAX. i cant speak to the online loan houses.

i'm not an agent but the agent I work with adds plenty of value to my team.   I suppose its like anything though, a few bad eggs can give the whole lot a bad rep.  I have also come across those bad eggs but the one's who work hard 10 hours a day for the hope a deal closes earn their value to me.

ignore and stay positive Tom, haters gonna hate no?

Hi everyone! Longtime lurker, first time poster. I have an extremely motivated seller who holds 2 mortgages on a SFR and owes a total of ~65k between both notes and are asking 75k. I am confident I can get 80-85k in 3-5 years. I can also get about $1300/month rent in this area. I don't know the sellers current total payment yet but have an idea its around $725/month. I'm approved for a traditional 20% down loan @ 4.25% but wanted to see if I could do anything creative like a Subject To? With a second mortgage in play i'm not sure if any creative financing makes sense? My traditional offer would top out at 70k.. taxes are roughly $3800. Property is in good shape and needs nothing to start renting.

Thanks for your thoughts!