All Forum Posts by: Brad O'Neill

Dan Miles Looks like not enough cash flow on a per door basis at that price. Are those income and expense number pro formas from the seller? Btw I'm in Fuquay also, nice to see someone from the same town.

Why don't you just be up front about your intention to wholesale in the first place? Why are you trying to obscure it?

This has to be one of the worst threads on here. Newbs that aren't dumb enough to take a measly 10% on what are risky investments are now entitled. This is laughable.

You definitely didn't blow the deal, you are on your way to making the deal. You did the leg work, made the cold call, and now you have his personal number. Keep at it and follow up, it might go nowhere in the end but if you're interested keep trying.

Jason Lazarski My credit score went way up when I got cards with 30k limits and pay use them for everything and then pay in full 2x a month. Went well above 800 after this.

I say it's worth it as long as you don't dig yourself a financial hole and here is why. You will learn many concepts and different ways to analyze situations. As always with college it's a simple foundation that you can build on. I like knowledge and the ability to learn new ways to approach situations, my MBA program has helped a lot easier in that. My school is paid for between my va benefits and my employer, if I had to pay out of pocket or student loan it I would say no it isn't worth it unless you had some prospects of making it into the C level in a company or if you just had 60k sitting around you could burn.

Cap rate is for commercial, which for apartments is 5+ units. Don't use cap rate for 4 and below because nobody else will value it based upon how well you hold down expenses or increase income. 4 and below is residential and values are based on comps alone.

I like to travel so I use a delta sky miles Amex. Costs me $200 annually but comes with free checked bags and a free round trip companion ticket every year which itself pays for the annual fee plus more. I also use the card for every purchase I can, I don't use a debit card or checks for much of anything. I almost never pay for plane tickets when I go on vacations I have racked up so many miles. I pay the balance in full twice a month so haven't paid a dime in interest, not to mention credit cards generally offer you protection from fraudulent purchases.

Timothy Metra I was lucky enough to not have major fixes or problems with the duplex so I wasn't getting calls from my tenants but if I would have I fortunately had myself and a few other people that could take care of issues. Yes I was active duty at the time so I didn't have all the time to spend on the place but it worked out well. Like everyone said screen your tenants. My first tenant was a single military officer with good income and previous good rental history, another tenant was a government contractor whose company paid for his housing so we worked out a rate that was very advantageous to me that even includes utilities and his company paid it. It wasn't until I let my guard down and did a friend of a friend a favor unit I got burned. Don't be scared of managing 1 tenant to get your start, is there risk, yes, but the risk is worth the reward, which is you will have a place to live paid for by someone else. Just make sure you screen your tenants well and you will reduce your risk enough to sleep well.

Tim,

House hack for sure on a duplex or triplex that you will live in and have your tenants pay the mortgage for you and maybe cash flow some afterward. Use FHA loan to get in, keep your job for a while. This will show you the buying/closing process as well as you will learn to manage tenants, which can make/break you ever wanting to get into serious multi-family investing.

When I was 21 I bought my first duplex while I was still in the Army. I put nothing down (actually got 2k back at closing), had my tenant in the other half paying my entire mortgage plus I cash flowed a littler bit after the mortgage was paid. What I got a taste for was managing tenants, I had 3 different tenants that were perfect but then I mistakenly let a friend of a friend rent from me and it was a disaster, had to get judgements on them, and never got my money. It was a good experience at a young age and one I would recommend.

I would second the RE license also, I wish I had time to go get mine soon....