All Forum Posts by: Chris Pelletier

Bummer!! :) Thanks for clarifying!!

Thanks Wheatie!! I need to clarify. If you refinance the home BEFORE you sell and take out your $$$ the actual profit would be minimal you'd have to pay taxes on ...correct?? Forget what I said about the HELOC.

situation...you purchase a bank owned home using a hard $ lender. Fix up the property. Before you sell, refinance and take out a home equity line of credit. Pay yourself through the HELOC to avoid taxes. Is this possible? Legal? Does it even make any sense? Don't know where I heard this, I could have dreampt it for all I know!! :lol:

Thanks guys!

Thanks for being forthright, I really do appreciate it. As far as paying off the consumer debt, the 11K would cover it except for about 700$. We do contribute to my pension plan and deferred comp, I wish we could pay the max but our income to expense ratio is too high. That's what brings us to our goal of investing in RE. We do not expect it will be easy. Our goal is to purchase a multi family (atleast one) so it will be paid for by the time we retire. We are in our mid 30s and when it's paid for in 30 years that will strictly be income. The 2nd reason we want to purchase a multifamily is so we can have some tax benefits. The reason we are considering the flip or wholesale is because we realize we have made some financial mistakes in our past. We need to pay down our living expenses so we can take full advantage of the deferred comp and pension contributions. We were thinking (perhaps being naive) if we made a mistake at least it would be 1/2 as much if we invested with a partner. We understand there are pitfalls, we understand we will make many mistakes but honestly there are a lot of benefits to investing in RE. PLease feel free to pick this apart as well. I want to go into this with my eyes wide open. Thanks for taking the time to reply!

PS: as far as the consumer debt goes, most of it was accrued through a run of bad luck. My wife was out of work for quite some time with an injury. Not to make any excuses, I know we should have had a substancial savings or insurance to protect us from that but live and learn.

My wife and I have 11K saved up. We want to start investing in real estate. We have some consumer debt we need to pay off, our credit score is excellent, and we have educated ourselves a bit. What advice do you experts have for us? Should we use our 11K to pay down our consumer debt? Should we invest it in a multi family? We are considering purchsing a property to either flip or buy and hold with a friend which will minimize expenses. I think we're frustrated because there are so many options, we don't know where to begin. We were considering starting in wholesaling which we thought would give us some cash to pay down our debt as well as put toward future investments. What I do know, we need to decide. Once we have our goal set we will have something concrete to work towards. Thanks in advance for your opinions. Don't be afraid to be too harsh, we can take it.

Thanks Wheatie, We're going to have my father-in-law visit the property with us for a 2nd opinion, he's pretty handy as well. Never afraid to give his honest opinion:) I appreciate the advice.

I guess a couple years ago the foundation deteriorated, they didn't repair it in time and it partially colapsed so the floors are sloped. Since, they have jacked the house and had it raised 3 inches, the source has been repaired.

My wife and I just looked at a 2 family home. Asking price 185K.
The house would produce at least 200$/unit monthly cash flow. The house is completely updated, electric and plumbing, roof ect. The problem is the house was built in 1905 and the floors are VERY uneven. The foundation has been fixed and there are no forseen problems with that either. Do we make on offer based on the potential income or are the uneven floors a good reason to walk away?

Thanks fliprent!