All Forum Posts by: William Bannister

Being that this is a real estate forum I will not get into the numerous many reasons why I rarely eat out other then to say msg,chlorine, floride in water and ect when your in a restaurant. I do eat out but its more a social, business thing and I dont eat much of the food..
My wife does a much better job with food at home.
I agree with Joel on the aspect of insurance on brand new auto they cram it down your throat. I hate that too. The crown vics I drive arent garbage they have no rust or problems and both have under 76,000 miles currently. They get 22 mpg so too me it works if I want to haul the family. They are fully loaded vehicles power windows,cruise,tilt6 way seats v-8 with passing power if needed. Also I have 2 crown vics because my wife and I go in different directions often;) I also dont have cable since its not where I spend my free time.
The corvette and cycle I mention are luxuries and hopefully that point was made are they necessary absolutely not. I did not buy the corvette until I had a million dollar net worth. To save money means to look at the entire equation.
I have also owned a car lot and am quite able to see the expenses that we spend to keep a car on the road.
The crown vics are everywhere and are easy to obtain parts in any city nationwide. If you break down on the road would you rather have some foreign car thats hard to get parts or my crn vic that could be repaired the very next day? I have yet to visit a city of 50,000 people in this country that didnt have a dealer nearby that sold ford or chevy products. this means I can get my car serviced just about anywhere quickly and be back on the road.
I wont argue if Honda or Chevy is better I read the info that shows the Japs are killing us on quality. Even though you might find a few American engineers that would argue I suspect that is the minority.
BTW for the record I have a lot of vehicles the thing is most of the vehicles have a business purpose my corvette and cycle purely entertainment and a waste of money. The crn vics are like a hammer in my tool belt. Just like my pickup truck and double axle trailer are tools in my tool belt. The truck and crn vics make me a lot of money every year. I drive 2 hours up to Indy or down to Memphis to make 20k on a deal..I need a vehicle thats not too expensive because I burn up cars fast because I drive a lot! If you drive a lot then you will understand why I dont want to drive a 15k car to the junk yard in 4 years;)
Also you might not like what a crn vic looks like but they are a smooth ride.Also when I have building materials in a car or a 7 year old boy wiping his dirty hands on the seats Im not to worried when I am driving a 5k car vs a 20k car. The other factor is when someone scratches or dents my car as happened last year I wasnt all that upset by it.. I am not even sure why I still have my corvette anymore I rarely drive and it just sits in garage 90% of the time. I guess family has taken over and I just dont have the heart to sell it.

Thanks Ann!!! this goldmine private money site will go into the trash bin. Also thanks Bob il try that I actually belong to the local YMCA and my wife knows a lot of people there that would probably work. I guess I need to go back and sift through my contacts and places I do business with and get busy.
this place is great its so nice to get info so fast here!

Don and Will are correct. To think you will owner occupy a property that you intend to use private money for? This probably wont work unless you find a inexperienced private lender which chances are pretty slim. Its not like conventional financing where you get a better deal on interest rate because its owner occupied .
Private money is different. Private lenders see risk in your wanting to occupy property. Both of these guys are experienced investors I have read quite a few of there posts and they are not going to steer you down a wrong path. It takes time for me to trust others and Im sure everyone here has that BS meter or red flag they have in the back of there mind but this forum has a pretty good core. I have not been in here long but I have taken the time to read thousands of posts before becoming an active participant. These 2 gentleman above are giving you some good advice. What we want to do in real estate is not reinvent the wheel .Thats to difficult and time consuming. Instead use what what works for others and copy. Like a rinse wash repeat.
Be very careful in solicitation of money, its highly regulated. Learning a little about the legalities is a good idea before you get the money not after!
SEC has big teeth you dont want to get caught in;)
Just my 2 cents

Privatemoneygoldmine.com
Has anyone every heard of this site they are trying to charge money 100 bucks for a list of prospects that are hard money lenders? My red flag goes up on these online offers but maybe I am just being too pessimistic?
Are there any investors here that can either tell me they have used a site online to find prospects in there area that has worked for them to obtain private money?
Im not against paying a little for good prospects but I hate throwing away money.
I am now looking for a few new private investors and thought maybe someone here had suggestions for what worked for them. What they used as an advertisement or web site to get private money? I am more looking to private money over hml. For reference I am doing apt buildings over 4 units my smaller sfh deals I just pay cash out of my pocket for that stuff. I mainly need money for 24 months. which is longer then typical investments.

The problem is people dont realize the power in savings because this money is so cheap but its not cheap when its stealing 500 a month of you monthly budget even if it is 2% interest. Thats a a suckers game since 500 a month would be a 100k of financing for a building that throws off a 700 per month cashflow.
The car companies know this. I agree that on the lower end cars you might be inclined to do this if the pmts was say under 250 per mo. Because you can barely keep a used car on the road for less then 150 a month so an extra 100 dollar bill might be worth the dependability and warranty you get on say a smaller compact car for commuting.I just worry about all the if's in life that happen when you borrow money if pmts have to be made by you and not a tenant.
Its one of the many tools that make people rich is not borrowing and using money to make money instead of using it to take money away from your monthly income. Its up to each to make there own decision Im just telling you what will happen if you borrow vs pay cash. The example above I give with billy he will always be wealthy by taking that money that would have been a car pmt and buying real estate, gold,silver,platinum or ect.
im a millionaire ands my every day drivers are a pair of 10 year old crown vics I bought at police auction. Dont get me wrong I have a corvette I drive on occasion and a crotch rocket but that stuff came as a result of paying cash for consumer items like a cars or a computer.
I like having dependable autos to and I get my cars services regularly. We have driven these police cruisers cross country numerous times with one flat tire so far. Todays cars are barely broke in at 100,000 miles and you will find if the drive train is in good shape on an auto you can just put 100 a month aside for repairs and oil changes and be able to have reliable transportation for 3 to 4 years on a 4000 dollar car that is paid for in cash.

Billy has a nice car cheap and isnt messing with his credit when he heads to get a mortgage nothing will slow him down from buying his dream home or 8 unit apt building that he wants to buy. Billy if he wants can also use the monthly income he would be making pmts on to save for an investment its estimated billy saves 600 per moth for 4 years and even though he drives a not so cool car he wakes up with 28800 dollars in saving and uses the cash 4000 to buy another police cruiser and uses the balance of the 24000 to buy a 200k apt building that has an appraised value of 400k.
Billy now has a monthly cashflow of 2000 per month for the rest of his life while johnny is still driving a cool car.
Who is doing better Billy or johnny?
Sorry about my grammer or english i type fast since I have 4 windows open on my pc im talking to others in other forums like my gold and silver forum and my other realestate forum, Im also negetiating building materials online as well for realestate projects.
Here is the thing when you burn cash on pmts you screw yourself out of having that money for a rainy day.
The last few days I have been bombarded with excellent deals that if I had pmts going out on crap like cars that depreciates I would never be able to get these great deals with cash. Dont get me wrong I like a nice ride and if I have cash and a 20k corvette is offered to me for 5k I buy it. Or a 3000 dollar crotch rocket is offered to me for 700 cash today only I buy it! You see what I mean. I dont make pmts unless the tenants are making the pmts.
I have over a 100 units under my belt because I live this way. I dont punch a clock, and I never get outta bed before 9am. I have a 7 year old boy that asked me how come other peoples daddies have to work all the time? Im like because they did not make the right decisions in life.
So this is where I am coming from. When you borrow money make sure its for a cashflowing asset or what will make you money. I understand you might want a mortgage for a home to live in..I will allow that once exception.

When I hear people talk like this as an investor it makes me want to scream. The government and big business have been borrowing so much for so long they have the public dumbed down into thinking its ok to borrow as long as its low interest or as long as its not to much dti. Let me tell you something about borrowing money and the types of things borrowing does to a person.
Borrowing will cause a person to put money above family as he makes decisions to work longer hours to make more money to pay off debt instead of spend time with his or her children. That is one example. Dont have kids here is another example.
Now we study the case of Billy x and Johny x. Johhny x we shall call him buys a 30k car and says yahoo I got a great deal on this car its the best ride ever. I make pmts of 600 per month for 4 years and its 1.9% interest. 1 year later one of 6 things happens. Johnny Gets injured in a ski accident and has to take time off of work insurance pays 80% of accident but he is left with a 4000 dollar bill he must pay and Johny cant work for 3 months because of the injury cannot make car pmt. His credit is trashed and vehicle may get repoed.
Or johny losses job no fault of his own due to a corp restructuring or down size or over burdened employer with too much debt closes its doors altogether. Johny with only unemployment cannot afford bills must sell car at a loss and bring money to table to save his credit. After sale he must take a rotten job doing crappy working in a restaurant just to make ends meet because he burnt up his savings on fire selling his expensive car he has borrowed on to save credit.
Or Johny meets a beautiful woman that he cant believe falls in love with him and with car pmts he is wondering how he will save for a wedding since her parents dont have money Or Johny is married has a baby and wife leaves job and it cause income for couple to get cut in half. Or car gets wrecked and even though you have a rental car in place and get car fixed it just isnt the same and you want a better car but realize that you owe more on it then its worth after it has been fixed your stuck with it for 3 more years. Or your offered a new job that is a promotion and you like the job offer but you must go over seas to work. Its not that much extra money but you will have the promotion you always wanted ...now the car is a ball and chain you worry can u sell it fast enough to take job offer. Boss needs answer by monday.
Now Billy he went to a police auction and paid cash for a 6 year old police cruiser and paid 4000 for a car with 50,000 miles on it. The nice thing about billys car is he paid 2500 under its book value claim.

Just make sure attorney doesn't release rent to anyone without your approval before the repairs get done. Have you looked for a new home for your business? You might think to find a new place with all this rent u have escrowed? Im not sure the depth or cost of a move dont know how big your operation is?
Commercial is so different when it comes to residential law in this matter of repairs. If the landlord already has problems then he might not have assets to attach unless you know where he banks? If you knew where he banked your attorney might be able to go after landlord for repairs too with ability to seize bank acct if he isnt in BK already..
You might just notify bank that contractor isnt licensed to see what they say on that one. I would like to know what there explanation is.

Sometimes its a challenge finding attorneys that are strategists and the ones that work using the Art of War or take no prisoners as sort of philosophy in winning in the court room. I have a friend from high school that is an attorney. If he lived near me I would use him even though he is double the average rate hourly because he is so good its worth it.
I had another friend lose some money on an Eminent domain case where he had hired 3 attorneys before one finally was able to finish case. My friend figures having the wrong attorney up front lost him 100k.

Did you at least get a receipt as to what they did with a break down?
My cpa complains to me bitterly about this when I show up with receipts on large projects done by contractor.
Finally I agreed that I would have a name and phone number and address so if IRS got involved we could track people and have more reliability as to accountability in the contract projects. Ein # or ss# before you start large jobs is the best idea if labor is involved.
If you bought a refrigerator from someone that is different or a furnace then let a receipt be enough for items u buy.
Your CPA will tell you what he wants, mine has told me if its a big job with labor get a ss or an ein# so we can 1099 them.