All Forum Posts by: Andrew Taylor

@Account Closed, my two cents' worth is that ROI and COC are abstract numbers, and cashflow is a concrete number. If you're buying the property for cashflow, and it cashflows, then you win. If you're buying the property for some reason other than cashflow, then maybe ROI and/or COC are important factors to you.

Admittedly, I'm a new investor, and a lot of these concepts are foreign to me, but by and large I think you pick a strategy/goal (i.e. cashflow) and evaluate the property in those terms. If it looks like a good deal with respect to those strategies/goals, then you think about pulling the trigger. If not, then you move on.

@Sharon Carter, what is that policy called? The one where I purchase an "umbrella" policy and then can add properties to it as I add them to my portfolio? I located a local guy via a Google search for "landlord insurance" and he quoted me nearly $200/month for a 30-year-old triplex in a little bitty town that was only worth $120k. Seemed awful high (like, as high as my personal homeowner policy on a $600k property in a high-end neighborhood).

In general, I think it's better for the community here if forum post questions are actually answered in the forum posts, rather than "PM me for details" or "contact me for more info" type answers. I understand that sometimes you need to keep the answer private for the sake of a deal, but something like what's being asked here would benefit a lot of people (myself included).

 BTW, I'm a general contractor in the Houston area. Feel free to contact me if you have other questions. I'm happy to help. 

Couldn't disagree more with @Rick Harmon. How many potential deals are out there simply because somebody failed to ask, "How could I make this work?"

If it's only been abandoned for 4 years then it doesn't have asbestos or anything weird. Construction materials don't change that fast, so whatever is there is pretty much the same thing the buildings would be built with last week. 

If plumbing and electric are in place and haven't been stolen for the copper, then you'll have a head start. If they have, have a plumber bid it for PEX and have it rewired. 

As my mother-in-law likes to say, how do you eat an elephant? One step at a time. 

If you're looking for small pieces for a small kitchen, you can go to the granite places and ask to see their "boneyard." They'll have broken pieces they're asking cheap. We did most of a 4,200sf house that way, because we didn't have anything larger than a 48" countertop except in the kitchen. 

Might not help you this time around since you're no longer local, but keep in mind for future. 

For laminate, try Boeker Countertops.

@Shailendra Thakur, beware the whole Quicken/Lending Tree online loan route. I've done this recently, and you will be absolutely BOMBARDED with phone calls and emails. If I was you, I'd set up a Google Voice or other disposable phone number, and a disposable email address, and use those credentials when you fill out the online forms. That way you can shut them all down at once when you pick a lender (just be sure to give your chosen lender your actual contact info before doing so).

Good luck.

@Tara Doyle, I'm also in the Houston area (far north side - think Tomball) and I've seen several of those signs around the 1960 / FM249 area. The ones up here say something like "Real Estate Investor seeks apprentice, make up to $10,000/month, call or text xxx-xxx-xxxx."

I've texted the number on the poster twice and not heard anything back either time. I assume it's bird-dogging potential deals, which I don't mind doing if there's a cut in it for me. I actually don't expect to learn much (at least, not from the "mentor" - I suspect I'll learn more just finding the deals) but it can't hurt to give it a try, particularly in my situation (seeking full-time work, and therefore with a bunch of free time on my hands currently).

PM me if you make the call and get any details. I'd be curious to hear them.

Another shout out for @Mario Tavares. I am a new investor, but Mario took the time to spend a long while on the phone with me recently, and I think he's likely a solid choice for what you're looking for.

Okay, so the woeful response to this post makes me think I probably worded it poorly. I have a hard time believing there's literally nobody on BP that knows the answer to my question. So let's try again. 

Say I want to buy a $100,000 property. I have zero cash, but I have lots of equity in my home. The bank says, "We'll take the equity in your home in lieu of 20% cash down payment." 

What does this deal look like? Am I borrowing $100k, or only $80k? When is the equity on my personal home "released," so to speak? In other words, if I have, say, $200k in equity, when I do this deal does my equity position go to $180k, or $0k until the debt is satisfied? I'd like to be able to use that $180k for other purposes without having to wait until the loan is paid off. 

These are just some of the questions I need answered before I can proceed. Thanks in advance for your help. 

Not exactly.  I already have a bit of creative financing worked up, I'm just not 100% sure of the mechanics. Someone to help explain terms to me. The bank offered me something I'm not quite sure of the consequences of.