All Forum Posts by: Andrew Schmidt

Debt is part of the game.

Depending on where you are in the business cycle, it makes more or less sense to use debt. If the markets going up get all the leverage you can get. If the markets dropping you go bankrupt. That happened to one of my friends brothers the last go around, multimillionaire to zero, killed himself.

Run the numbers all the ways an remove the downside.

You can run it like a business without a LLC by opening a separate savings and checking account to segregate the funds.

The inside looks like a prison... Cinder block grey everywhere.

A home purchase should spark joy.

I've seen old people sell their real estate for a dollar in order to strip assets and make the nursing home more affordable. Ethical meh.

Deal closed today! I'm now a investor on purpose.

Don't consider those security deposits your own money. Depending on your state they are sometimes required to be in their own escrow account. This requirement is especially common if you're holding the property in an LLC, sole proprietor they just sue you directly.

The security deposit becomes yours only after non performance of the lease in some regard.

Thanks Michael

Credible.com

My first real estate purchase was a fixer upper in Everett WA.

Bought for 270k, I ended up as a unexpected landlord renting out to friends when I left for a work. That was a mistake, I rented it to them for under market and they were rough on it... The market was hot and a wholesaler gave me 309k for it. Which is about even. They fixed it up and are trying to sell it for 450k.

My second real estate purchase was 20 acres of range land in Washington which I purchased for 8k. Being that I don't need a place in the hills for the zombie apocalypse, random people are now trying to propose a rent to own. Which sounds retarded but if someone wants to camp there for 200$ a month for ten years they can have it.

My third property was two houses on 5 acres. I live in the big house and the tenant in the other one pays the mortgage. I purchased the property for 209k. The small house rent is 850$/month. It's in the path of progress and has room to build 15-20 houses, holding for appreciation and pretending to be a farmer sometimes.

I have under contract a 3-2 house in a cheap market, the inspection brought to my attention additional problems and I'm trying to renegotiate it for 6 grand less (heat pump and electrical issues). They haven't cancelled it yet but probably will or so the agent says.

If they get deported they won't be able to pay. 

If you do a background check on all of your tenants you will be able to screen this without discrimination.