All Forum Posts by: Bradley Bocker

It might be worth asking for owner financing and then wholesaling.

If you can provide built in leverage for a buyer it will make it all the more attractive.

@Christopher B.

I totally agree, I just feel like people dismiss them altogether and miss great deals.

I am looking to start investing in non performing notes. 

I have done a few flips but have not done any notes yet.

The problem I am running into is that currently my capital is tied up in a flip and from what I have gathered when investing in notes, unlike flipping you generally need funds available prior to getting a contract.

I am 20 years old and I have no access to traditional financing beyond a few credit cards.

With these things considered I have come to the conclusion that my only option for leveraging would be to raise private capital on a line of credit basis.

So on to my actual questions:

1. Would it be wiser to wait until I have a track record with my own money in a new investment scheme before bringing on money partners despite having real estate experience?

2. If going the route of raising private capital now; how would you approach doing so?

This is great!

I have never understood why some people look down on low price points.

They defiantly come with some things to consider and I would say they are a little more hassle, but there is money to be made.

I am pretty sure this will vary state by state. if we are talking about second foreclosing thus sending the property to auction at the court steps then the proceeds will go to satisfy the first prior to any going to the second. I have never heard of a second being able to sell the property subject to the first, however if you are talking about private notes it can get a little hairy, and I am likey not qualified to speak on this matter.

@Lucero Sanchez cash on cash is determined by how much cash comes initially out of YOUR pocket vs net monthly income. 

ex: $50,000 property 20% down = $10,000 our of your pocket

lets say it rents for $1000 and your expenses are $600(PMI, taxes, insurance)

this leaves you with $400 cash flow which is 4% of $10,000 so your monthly cash on cash is 4% yearly cash on cash is 48%

However cash on cash is not the same as the 2% rule. In this case $1000 is 2% of $50,000 so it meets the 2% rule but again the cash on cash is 48%.

not directly related to your question but CAP rate is the yearly percentage of the total capital in a deal that is recovered.

so on our $50,000 house with a $400 cash flow the cap rate is 9.6%

$4800 net income per year is 9.6% of $50,000

In summary cash on cash can give you an idea of what your returns are while taking leverage into account, while CAP rate is better used to look at the viability of a deal with more of a birds eye view, the 2% rule is a general guideline to see if a rental stacks compared to others.

I have found that agents will jump on an opportunity to work with an investor for the long term. Often they will offer services like this, running comps etc, in order to get you business for the long term.

If this does exist I would also be very interested in hearing about it.

no, my goal is to have a quick way to purchase land from motivated sellers without the need to wait for a closing.

Hi,

I have a question pertaining to the legality of quitclaiming property to someone without the use of a lawyer specifically in the Carolina's.

Looking for a way to quickly transfer land small tracts of land.

To me it seems like a little bit of a grey area that is not explicitly legal, but rather legal if you convince everyone involved that it is.

Just wanted to know if anyone here has had some actual experience doing something like this.