All Forum Posts by: Brian Boe

I have been an LU member for less than 2 years. I am in at the lowest level $500 first year - $240/yr. renewal. What I like about the organization is that I have never been pressured to pony up more money. They provide several networking events each month with guest speakers. I have only been to one of these where they had a "guru" pushing product. The other 99% have featured contractors, lenders, legal eagles and so forth. I am involved in my first rehab/rent project and I have utilized their unlimited mentor calls numerous times. Never had any pressure to upgrade. There may well be other organizations that are better, but I too have attended a Renatus (Nouveau Riche) meeting and couldn't get out fast enough. Two totally different types of organizations.

If I and a guest played once a week, you are charging about $100/round. It would have to be a much nicer course than most public courses I have played on. If this golf course hasn't been picked up by one of the 100's of golf mgmt. companies, I would be very suspicious. A golf course would have the potential to be the biggest money pit you may ever encounter.

I would be interested to hear from those who own their properties F & C how you went about it. Was it primarily by flipping and getting the cash up front, or putting your cash-flow from the rent back in to the note.

IMO the question is what do you need to live on? NW would be important for long-term, but you gotta eat. I'm sure we all know someone who is a millionaire, but are they able to live exclusively off of their net worth. It would probably be easier to get to the 5M NW, than the 400K income level.

I would be interested in hearing from anyone in the Houston market who is running any Sec. 8 rentals. I am looking to see how viable it is in this market. I hear stories all over the place and wanted to try and get a local feel.

Jon: Thanks for the info. I have some other questions about expenses and will go to that thread. Very helpful.

Jon: Where can one go to get info on how to project costs/cash flow on hard money/refi loans as we are discussing using different assupmtions for carrying costs -rents etc.? Thanks.

In the Houston area there are a number of HML's who put together the hard money/refi loan packages together. The only "concession" they make is that you can possibly get into one with a FICO in the mid 600 range. Every one of them that I have talked to are asking for at least 10-15K in reserves.
Working with a lender for several months now I have my mid score @ 730-740 and the cash is close. The lenders are looking at max ARV for the HM loan of 70% and some will refi at max 75%. There is a possibility that you could "possibly" come out with a couple bucks at refi, but you could also essentially get a rental unit with no net cash OOP. Each and every one is firm on the cash requirement though. Getting ready to start looking actively for my first rental.

Thanks for the info. When I get through them I'll let you know about the first one. Might just be the standard stuff. We'll see.

My take on this article is that it should be very positive for investors. However, if most of the homes/notes are bought up by the hedge funds and corporate firms it will take a lot more time and work for us.