All Forum Posts by: Justin Fernandez

@corey damon, this is what you should really do with your 30K cash in hand.  

Honestly, it's been pitch after pitch but super subtle and without ever being said. I will admit that some of the stuff was interesting to learn, but wouldn't try unless vetted.

Increasing your credit limits to improve your credit score by never actually spending the money via courtesy checks....couldn't imagine why?

How to HELOC a home without owning but controlling it....>.>

How to play up a life-story no one really asked for (He used the military, but some things didn't add up)...>.>

but that's just day 2.

I will admit that I would pay 12K and check out a class just to use the software that pulls comps, within parameters, finds spreads and deals on the MLS, finds pre-foreclosures, foreclosures, generates contracts, houses contact data, sets up the market for you.

It just makes life easier, and if I can do a few wholesale deals through it, then boom, it's been paid for. And if I can keep finding deals, I am pretty sure it's a gold mine.

Note: Tried doing some due diligence, and it just happens that a lot of naysayers hate the Rich Dad system (95% sounded like buyers remorse), but with the amount that go through the classes, I wonder why none of the people who actually go to a class say anything about it(if they do, it's just very neutral). 

I'll let you know how Day 3 goes. 

You're quite welcome.

You don't need one but I'm not in cali, so hopefully someone else can chime in.  

The ultimate beginners  guide has a section on lease options.

Wendy Patterson has a great way to do lease options in her book lease options.  She goes through the process of explaining how to make profit 3 ways from a single transaction.  The book is a subtle pitch to attend her training but that's  up to you if you want.  You will need to find actual contracts and get them vetted.

I'd also reccomend a mentor who specializes in these transactions, and learning other strategies than just one in case lease optioning doesn't  work since it's only attractive to certain parties with certain situations.

Just my 2 pennies.

Attending the 299 course today, sat and sun.  I'll drop a play by play on how it goes.

It will be in your contract when you put it together.  I would recommend having a lawyer look over it to make sure it's put together properly as I am not one, nor do I know your laws in NJ.

Essentially, if there is any down payment left after seller concessions, you can ask the seller to finance it for you by the seller giving the concession and then tacking it on top of the sale price.  But, your credits for taxes and rents should mitigate most of it. Asking the seller to do that shouldn't be a problem for them, but you never know.

Since there are tenants in place, close on the 2nd or 3rd of the month.  That is a seller credit/concession, along with any deposit but remember to have that money on hand as it isn't yours but it's still a credit.

You'll get the prorated portion of taxes for the year.  Also a seller credit/concession.

Look up FHL bank and search for a bank near you that participates in the Homeowner program, that's an additional 5K.

Also, google the county the house is in to see if they have any programs for you and see if you qualify. I know in the area I'm looking the non profits offer free housing education and some assistance of which you would qualify under since you are living there.

Even if you pay the downpayment, you could get a check when you close. 

You had me at 380 rent (I would've moved in yesterday). Any room to improve rents or decrease expenses? I prefer GRM and cash flow and then potential cashflow with multis under 4 and below. Cap Rate isn't that determining of a factor until you hit 5+.

Things you need to consider prior to closing. 

Do you have a closing date? If so, when?

Is your financing lined up? 

Does your bank have homeowner programs? 

What would be needed for you to be 100%. Have those conditions been met? 

Also, your utilities shouldn't be factored when you move out, so in terms of 2 years, you'll break a little more than even.

740/month = 8880/year

1st year = -4440

Down Payment = -6300

Total = -10,740

2nd+ year = 8880/year

You should be positive in the 3rd year 1st Qtr overall for your investment minus major

catastrophes, exes, axes and aliens, should be good to go...at least on this investment providing your numbers are spot on.

What year do you plan to refi? I assume after the first since you are using FHA again, and that should be an increase in interest but PMI drops. Was that factored also?

I'd look at it like this, are you ok with paying rent at 380? 

Once you hit your reserves for the unit whatever amount your risk appetite can handle, you can stop feeding that fund.  So you'd make more eventually. 

But isn't that the whole point of owner occupied housing, to live nicely without much coming out of your pocket?

Are the meters separate or together? If together are you paying all of it? 

Just things to think about. Also, not a vet, just always curious about MF deals.