All Forum Posts by: Andrew Schlessinger

@Leland F. Welcome to BP. I followed the same path as you and arrived at the same conclusions. I followed BP forums for some time, listened to some podcasts, bought a few books, and have been hooked ever since. Glad to see you are planning on going to some REIAs; definite boost of confidence knowing there are many like-minded investors out here that have done the same things, asked the same questions, have been challenged with similar problems, AND are willing to impart of their knowledge. As an example, after attending one meeting and discussing my strategy with a few members of our local REIA, a few showed me that I could get to my strategic goal with different, and possible more effective routes. I've since changed my approach (though not my strategy) and am happier for it. Not only are members a wealth of information, getting to know them on a more personal level is great too.

Andy

Guys,

Thanks for the quick responses. @Wayne Brooks - the interest rate on a cash loan is 5% higher. @Joseph Konrad - that equals what Prosper and the Lending Club offer. Thanks for the lead; I didn't know about those sources. @Account Closed - the CC's can file a UCC on the property.

Again, lots of great information that you were 100% correct on. Thanks for the sanity check. FYI, with private financing for the purchase and paying off the CC (repairs only) in 60 months, this property cashflows for about $100/month. If I put personal money towards paying off the debt I can be free and clear in about 24 months.

BP,

I’m looking to purchase a property when the current renters move out in June. I can make the purchase with my business partner’s credit card (12%), the property will be in my name (he doesn’t want to do buy and hold), and our contract will state that I am responsible for all repayment of financing until the refi.
1.At 12% putting it on a credit card seems like a no-brainer since HML rates start at 12% + 2 points. I can afford the monthly minimum payments until refi even if it doesn't rent. Is it wise to put the entire purchase and renovation on a CC, even for 6-9 months?

2.Lenders have quoted refi minimums as follows: 75% LTV, $50K minimum loan amount (property has to be worth $67K min), credit score > 670, minimum 6-month payment history. I can meet all requirements. Is there something I'm missing here? Who has experience refinancing an investment with a standard loan?

Thanks,
Andy

@Gabriel Trieu

Great post. Love the detailed numbers breakdown. From the research I've done (limited) there's about a 3% callback rate with only about 50% of those becoming qualified leads (interested, meet the criteria). So you getting 4% is beating the odds.

I'm putting together a business plan and am very interested in your successes and challenges, so please keep the posts coming.

@Maurice Brantley,

Real Deal and MDREIA (free), Baltimore REIA and MAREIA (fee).

I've been to that place to find some things for the house. The employees are nice enough and, if you know what you're looking for, sometimes it's a good buy. But I never knew that's how they worked. There must be something about requiring to ask for a "donation" instead of a fee to keep getting tax dollars. If that's the case then I'd agree, pretty shady. Disappointing, for sure.

@J Scott:

Fantastic blog. Very educational. Do it again.

I've looked at some of the analysis forms you referenced in FilePlace. Great work. Very organized. I'm an excel junkie; use it a lot at work, so kudos.

This has been fun to read! Especially someone looking to get out of the 6-5 grind and build a second career in the next 5 years that doesn't tie me to a desk.

@Scott Costello

That's the answer I was wanting.

It looks like a 2% hit-to-deal ratio, which matches up with the VERY LITTLE research I've done into conversions. The great part is letting the people come to you. I've seen that some people use this method as their ONLY form of advertising and it's become more successful as the months pass. Not that they are doing deal after deal, but 5-10/year is good depending on your REI model and goals.

Originally posted by @Andrew Schlessinger:

@Scott Costello Great break down of your conversions. I'm kind of a stats guy and like to see what the "average" guy is getting from the product (pun intended). I've recently stumbled upon Investor Carrot and these are the things I look for. One stat you didn't put in was how many of those "qualified leads" (aka conversions) (5-10) turned into a deal?

@Trevor Mauch I appreciate the tone in your conversations. Like what I hear. Maybe I'll check it out.

@Scott Costello Great break down of your conversions. I'm kind of a stats guy and like to see what the "average" guy is getting from the product. I've recently stumbled upon Investor Carrot and these are the things I look for. One stat you didn't put in was how many of those "qualified leads" (aka conversions) (5-10) turned into a deal?

@Trevor Mauch I appreciate the tone in your conversations. Like what I hear. Maybe I'll check it out.