All Forum Posts by: Bryan P.

Using your 100 a month cash flow, isn't it 8% cash on cash? It's 15,000 cash invested and 1200 per year in cash flow.

Duplex, approximately 1200 square feet per side. 3 Bedroom, 1 Bath per side. In average condition.

Asking Price is 65,000. Owner still owes 50,000 on mortgage, 25 years left @ 6%. I offered to possibly take over their mortgage and pay the difference (15,000).

Both sides renting for 1,000 Total.
Mortgage Payment is 400.
Insurance is 100.
Homeowners is High-almost 100. (Wood Stove Heat on one side.)

From what I can tell it cash flows 400 and is not in need of immediate repairs.

Having a car payment obviously decreases net worth and puts you in the hole, even with interest tax deduction. Correct?

If I pay off the rental mortgage, I increase my cash flow by 300 per month which covers the car payment. Using Kiyosaki's little saying, "paying for a liability with an asset."

I also see the point of letting the renters pay down the mortgage. Yeah...I see that.

I don't know.

This is kind of off-topic but relevant to real life.

I have about 15,000 in the market. I certainly don't trust the market, I might add, so there's part of my philosophy on it.

I need a new (used) car as mine is about dead. I'm thinking that if I dump 10,000 into a car the 10,000 investment will depreciate. I was considering taking the 15,000 (from the market) and paying off a rental property mortgage, increasing my cash flow by 300 per month. That 300 could pay the car payment plus insurance. The 15,000, within the property equity, can also be borrowed against to buy another property if I wanted. i would not be able to borrow against the money if it stayed in the market and obviously I cannot borrow against a car if I dump the money into it. I think this makes sense.

Is this logical thinking?

What is a "balloon" payment (financing) that alot of you talk about?

Also-what is a note? I read a post about a seller wanting to sell using owner financing and then selling the note to another investor. I have no idea what this means.

Help out a newbie...Thanks!

So wholesalers use a realtor that is good with finding investment real estate...ok.

If that information is not there, can a creative offer be presented? Will the real estate agent even entertain the idea?

From what I gather, you need to find a property at 70% After Repair Value to be able to make a wholesale spread possible.

I drove around my town for an hour and I see 99% of the homes for sale through a realtor company.

So, for the wholesaler, is it a case of making 100 offers and getting one that fits the spread?

It must take a good bit of work to find that 70% ARV.

When buying a property, when it's being sold through a realty company, can you make offers in various non-traditional ways? (Such as 25% owner financing, 25% downpayment, 50% financing from outside party, etc.)

Ok-I just don't understand how wholesalers get away with buying at 70% ARV when a seller wants to sell for as close to appraised value as possible. And I don't understand how sellers can read a clause like that and not figure it out!