All Forum Posts by: Brad Fausett

That is is Marcia!  Thanks!

Your buddy has two options, Take a deep breathe and try to double up in the casino or take a step back and start educating himself on the world of RE.  Asking what would you do is a quick way to get in over your head on an investment.   Spending time on this forum, reading all the basic books and spending countless days of reading then formulating a plan will leave you with an answer on what to do. The last step is to just get after it, start small and test the waters along with your apptitude for the RE world.  

@Christopher Blanco

Lets break this down a bit more.   What is your primary goal right now, are you looking for a flip or a rental.   In a scenario as you decribe sometimes it is best to take a step back and focus on a single task.   Given you are missing on both lets pick one to focus on.   As for your rating scale, are you working off a neighborhood sheet that tells you what they are, do you drive the neighboorhoods and determine what the area is like.   I will not invest anywhere that I would not live.  I drive the neighboorhoods and often times turn down properties that look really good.

I will send you a message on one property that has great potential for rental.  

@Andrea Hauserman

I was going to offer to help get this done for you.  However I see it has been 27 days.  I assume this has been taken care of.

@Christopher Blanco I hate hearing you are struggling to find cashflowing properties. Are you using the calculators on BP? Can you share a report from one of the "failed" properties along with the addresss. I have to agree with the others, there must be something broken in your formula. This city is covered in C & B properties that have excellent cash flow. Are you getting to the table first or are you putting in offers on properties that have multiples? I certainly am finding more properties than I have the cash to close on. 15%-20% ROI on buy and holds are everywhere. Look closely and you will see 20% +.

I also have a duplex on Cohassett in Lakewood.  My water and sewer is together and I am averaging right at $60-$70 per month for both as the service is combined.   FYI, i take very long showers too.  There is only 3 total people in the duplex which also plays into the equation.

now it sounds like everyone is on the same page.  Your last statements are directly in line with my lenders.   Thank you Andrew!!

I would agree with the other posters,  my experience so far is the more downpayment the less risk to the bank, thus leading to less of an interest rate.    However with that said, the difference in downpayment is $5,085.   The payemnt is only $290 more per month, how long do you plan to stay in this home?  At the higher interest rate it will take 17.5 months to recoupe the extra $5,085.  Are you doing other investments?  The extra $5,000 may be more benificial in your pocket.  

However, i found another lender who will do 15 - 20 -25 percent down but my original lender, who is a friend, says this is a non-conforming loan?  This is riskier but he said for me to send over the info.  He said if it truly is a better deal he would tell me.  All this lending seems so complicated.  I am now thinking maybe i just do a standard conventional loan use my cash for the reasonable updates then refi in 6 months to get my capital back out.    I really appreciate all of your help!  You are awesome!  

@Andrew Postell