All Forum Posts by: Christopher Brainard

@Terry Lao

If you really want to know why there is negativity surrounding your post, it's because you aren't really in touch with the reality of how poor most people are and how they perceive the world. Your idea of sacrifices (accepting free cars, buying Nike shoes, Coach bags, Premium Cable/Internet, Etc.) are pipe dreams for the vast majority of Americans and I understand why people would mock your 'sacrifices'. While I don't see anything wrong with your plan, you don't have any sort of economic disadvantage and from what I recall, you just purchased a couple fourplexes at market with conventional financing in Vegas. That really isn't much of an accomplishment for someone who has the means to do so, especially with all your technical posts about the market. You should be focused on buying a house a month, not reselling appliances on craigslist. 

Now, back to the subject, the entire idea of sacrificing to get ahead is flawed. I've been poor before - homeless, hungry, and you simply can't 'sacrifice' your way to success when you're dirt poor. You have to work harder and smarter than everyone else in order to get ahead. Once you're ahead, you should (within reason) enjoy your accomplishments and use those desires to push yourself to do more. I bought a new car this year. I bought a new house as well. I also increased my net worth by over half a million. I don't apologize for any of these things and no other successful individuals should either. 

-Christopher

The market is highly competitive and you need to know what you're doing to make a buck. 

-Christopher

 Bank financing means a slow close...

-Christopher

You should speak with a tax advisor. If you're only flipping houses, you should probably do so through a single S Corp.

-Christopher

@Benjamin E.

Sorry but I don't have any good news for you. The point of the Home Is Possible program is to allow individuals who can't really afford (or currently own) a house to buy one. As a homeowner already, you have demonstrated that you have the capability and means to purchase a home, so you aren't the target for this product. Placing your properties into a LLC isn't going to solve your problem and this could easily be deemed as mortgage fraud. The permanent financing is the loan for your purchase, so it is applicable.

The easiest (and possibly only) solution is to see if your loan officer can get you a conventional loan in place of the existing loan. This won't be possible in the time frame given, but you may be able to get an extension. You could also possibly look into some bridge financing to hold you over until you can get that conventional loan. 

-Christopher

I would suggest that you wait until after your divorce is final. In addition to ensuring there are no legal issues clouding your ownership, that will also give you six additional months to clean up your credit score and also to establish some work history. I don't think applying for a loan right now is of any benefit to you, as your husband isn't going to be on it so you can't use his income toward it. I also assume you are living separately, which means even if he agreed, you have twice as many expenses, utilities, rent payments, etc.

I should add that this doesn't preclude you from learning about and/or doing real estate. You can always wholesale properties, find some partners to work with, get some owner financing, or even try to pickup some properties subject to the existing financing.

-Christopher

You can't make a deal with someone who doesn't want to sell. I don't think that under any circumstance you should allow him to remain in the property. The reason he likes #3 is because he's not going to move out after you catch him up. If he can't keep up with his bills now, he's going to be a terrible renter in the future. 

In my opinion, you are trying too hard. He's well on his way to foreclosure and seems unconcerned, so you need to wait until he is concerned. Plus, if you're too 'into' the deal, he's going to sense that and figure he can get more money out of you. As is, you're going to be 780k+ into a property after closing costs and repairs that is currently worth about 850k. If you need to get out of that property for any reason, you'd be lucky to break even. 

-Christopher

@Derek Mizysak

If you don't have a signed contract, you don't have anything. 

-Christopher

If you haven't already, you need to go look at the properties. If a property is on the MLS and isn't selling, there is a reason why and you need to identify and evaluate it. The property may be overpriced, trashed, smell really horribly, have foundation issues, be a hoarder house, etc. Understanding these problems and the costs associated with them will put you ahead of the crowd and let you find profit where others can't.

As far as owner financing goes, or any creative technique for that matter, it depends on what the seller's reason for selling is. If the seller just needs cash, then an all cash offer at a lower price point will carry the most weight. If a seller needs income, not cash, seller financing is a great solution. If the seller has little to no equity and just wants out without putting cash in, then subject to may be your best bet. The best deals are where everyone wins. The bad news with creative financing is that most realtors aren't more than door openers and don't understand creative techniques. Your best bet is to study up on them, learn them well, and make sure you can educate your realtor before any offer is presented. Also stress that they will get their full commission, commission reductions (or perceived reductions) are usually why most offers get filed in the trash can. 

At some point, you're going to need to learn how to use other peoples money and just not your own. Unless you're a billionaire, you're going to need financing, loans, creative techniques, and possibly even partners to take various deals down. 

-Christopher

Having a plan like this is great, but in reality you are going to find out that you need 2x to 3x more doors than you expect, unless you have them all paid off in cash.  Let me tell you why :)

While I don't know how much you make a year, it's difficult to save proportionally to increases in home values. Many people who take this approach save and save but the market just outpaces them. You also need to take inflation into account and the most expensive items you will acquire, which are a wife and kids. Additionally you need to take your young age into account so the money needs to last a very long time regardless of the economical state of the country. Ultimately, having too much money is never a problem, but too little is.

With that said, your plan can easily be far more aggressive. Even starting out, you should be able to acquire at least 10 doors every year. Look for owner financed deals, use your job to leverage loans (don't quit to do this full time until your income is replaced), and househack a fourplex. As you gather more doors, it gets exponentially easier to acquire more. I wouldn't fixate on $300 per door, just make sure all costs are accounted for (including capex, management, repairs, etc) and that you have at least $100 extra per month. Pay down principals when you can, but keep sufficient money in reserves. 

Also, if you have some free time read Grant Cardones book the 10x rule. I don't agree with a lot of his points where real estate is concerned but the overall lesson of the book is important to understand. 

-Christopher