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All Forum Posts by: Arthur Lyons

Arthur Lyons has started 6 posts and replied 34 times.

Post: Advice Needed On Real Estate Investing Idea

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20

Im sorry I think that is a really really bad idea. Your cash on cash return gets worse and worse each time you dump cash into that property.

The beauty of a rental is that somebody else's cash is paying for YOUr debt. Then you can leverage the cash you have to get your next deal while somebody else builds equity for you with Their money. (This is called food debt) It's a beautiful thing!! But you will mess it up by putting in your own money. I'm down with OPP yeah you know me! (Other people's pockets)

Post: What to do with $15K

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20

Hi Jorge! Don't take this wrong way but something isn't quite right if you're intense marketing for 2 years with absolutely no bites. Even cold calling Craigslist with the correct conversation should have resulted in something. It is a pure number game and if you have made hundreds of offers something should have landed. I  would say start reviewing some of the bigger pockets podcast and forums on marketing and conversation training to get a little better at it. 

For a more specific answer I would say look to wholesale in a different area. Or if your credit is good $15k is enough to actually put a down payment on properties in other areas of your state or local states. You could also partner and find someone else at a local REI club who may also only have $15 and partner network network network! You could meet some other wholesalers in your area and help them find buyers for a share of the fee. Or you could find an out of state turnkey investor that has deals with low buy ins. Sometimes owner financed.

Post: Why am I running into the WORST wholesalers?

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20

I got my start in the real estate business as a wholesaler before I started buying for myself. Personally I always went above an beyond putting together elaborate packages with pictures, getting at lest 2 contractors estimates, I would break down the numbers for flips and for rentals with refi numbers even,  I had a realtor running good comps for me and tried to put the deal on a platter.  Have never received one complaint and have a lot of repeat buyers.

Unfortunetly good Wholesalers are much like good contractors, or investor friendly realtors, or good tenants. They all have their bad apples! And all must be veted with the appropriate questions. But just like all of the other "professionals" once you find a good couple hang on to them and take care of them and they will keep feeding you.

Vetting questions from my insider perspective? hmmm I would ask 1. Are you direct to seller (no middle men)? I personally dont like more than 2 in the middle. 2. Always ask for original contract as well as the assignment, if they are squirmy with not wanting to let you know what they got the contract for that is a red flag, 3. They should know ARV, BUT if they don't they should tell you up front. There have been times where I came across a property that was out of my area and I had a ball park ARV but did not know the area like the back of my hand. OR maybe I had not even been to the house because it was 2-3 hours away. 4. a detailed interview of them ahead of time testing their knowledge on real estate terms and thought processes, asking what kind of margins they look for etc. a good wholesaler speaks and thinks just like an investor. 5. ask them what kind of marketing they do and how they get their deals. Just off the top of my head those are some of the things I would have asked myself as a current investor and previous wholesaler looking back.

Post: Flip with Hard Money

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20

Hi Danielle, Congrats to you and your husband on making the decision to get started investing. What I've learned is that people get started with various mix of resources. Time, Money, Credit, and Knowledge. The IDEAL situation is abundance of all 4, but most people especially starting out have 1 or maybe 2.  Your situation is great you have Credit, limited money, and sounds like working on the knowledge. You CAN do this and Hard Money is a valuable option.    What I suggest is 1. Partner with someone who could at least cover the down payment *that someone could be me depending on what location you are considering investing in. 2. There are 100% lenders though hard to find.   phillyactioninvestors is one company that does this. (they split the profits with you) 3. Hard Money rates and terms are getting better and better because the competition is increasing, make sure to shop around. They want to know you are experienced so maybe talk to some local investors and have them "partner with you"/ advise you on your project so that you can use their list of experience as a reference. Maybe give them couple hundred bucks for the time. OR better yet partner with them on your fist deal.  Hope this helps!  Investing is a team sport so you have to build you team to be successful! Good Luck and if I can be a resource feel free to reach out.

Post: Dumb Q? How much would a complete house Rehab - 4000 Sq Cost?!

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20
Big project. A good number is $35 - $40/sq a square in my opinion.

Post: Loan Service Companies?

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20

I recently read a book about raising private money by Susan Lassiter called getting the money.  In the book she talks about the importance of finding a loan servicer to handle the money doing transactions from your private money lenders.  I am having a hard time finding such company.  A company that would hold the funds, disperse interest payments, record a lien until paid, and allow the lender to tract the progress of their investment over a period of time.  This gives the private money lender a sense of security and transparency and keeps funds out of my bank accounts. Does anyone know any companies that do this well?

Post: fiftenn dollar 15 minimum wage

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20
In and of itself I support the increase. However the sad thing is that many people have a poor financial education of what to do with the additional money. It's similar to the lottery winner of $a million, who has continued bad decisions and blows it all. I don't feel The minor increase in wage is fixing the problem as intended. Our schools and at a more micro level our families need to do a better job of financial education. *i do believe that is slowly changing.

Post: How much money can you actually make a year starting out?

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20
I just wanted to throw this question out there for those who are bold enough to answer., it just occurred to me that over all the years of attending investor boot camps, rei meetings, listening to local gurus,trainers or podcast the topic of how much money that individual makes currently or what their gross was year over year doesn't come up. Maybe it's rude to ask, invasive, nosey or not politically correct. The reason I'm asking however is I do believe this conversation could provide a little additional motivation, a comparative to what is average. I know the sky is the limit and one could make how ever much they desire and work towards. But I guess my question is what's your story? How long did it take to reach a $50k year, $100k a million. How long did it take to go from cash flowing 2 properties at $300/math profit to $1000 to $8000. What are the numbers behind some of our success and losses.? Or is that to personal?

Post: frankford philadelphia

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20
Oh one more thing. Use trulia.com's crime map for the neighborhood.. it is pretty accurate as to which areas you may want to stay away from.

Post: frankford philadelphia

Arthur LyonsPosted
  • Wholesaler
  • Philadelphia, PA
  • Posts 35
  • Votes 20
I have done some some business in Frankford. Yes you can cash flow well but as Joe said increase your maintenance reserve. Also know which section of Frankford you are choosing. The east side of Frankford Ave is a bit better than the west side. The closer you can get to the water/ bridesburg neighborhood the better off you are. Also negotiate very well, get some for sale by owners through good marketing and you can find some really good deals.