All Forum Posts by: Dan M.

Welcome Theronda! Best of luck on your search. Feel free to reach out if you have any specific questions. 

Congratulations on your first investment! Are you living in one side or renting both units? I think having a duplex is better than a single family as there is less risk. 

I love what you said here:

We need to learn how to negotiate and to not get out emotions involve in the deal. Let the numbers speak for themselves.

The numbers will ALWAYS let you know if its a go or a pass. It makes the decision making process black and white. 

Hey Ade,

Somewhere recently on these forums was someone looking for a wholesaler in that area. Sorry I can't recall the specific person or where it was posted but if you search I'm sure you can connect with them, or who knows maybe they will see this! 

I AM NOT AN ACCOUNTANT AND THIS IS OPINION NOT NECESSARILY FACT, PLEASE CONSULT AN ACCOUNTANT OR ATTORNEY TO MAKE SURE YOU DO IT THE CORRECT WAY.

Yes, that's the way to do it correctly if you do not have individual bills per property but rather the complex as a whole. Same goes for office supplies that get used across the board. 

It sounds like you already decided for yourself: sell it and sleep at night.

The other alternative is to refinance to a longer term so it will cash flow, though by how much with these high interest rates is tbd. Throw in your balance into a mortgage calculator and see what it looks like amortized over 30 years at say 7.5 percent. 

Its going to sound mean but its not meant to be:

Suck it up and move on

There's little to nothing you can actually do aside trying to take them to small claims court. If you do go this route make sure you have before and after pictures, and the lease ready for the judge. 

Another idea besides DSCR which is the obvious best overview option for you ( though will be more expensive then traditional financing ) is partnering up with someone with a solid W2 job who can get financing.

You could also try to find someone with a self directed IRA who is looking for a good return backed by the property.

You could also try to get seller financing. 

Hello Abby,

My answers to your questions, everyone has different opinions but here are mine:

1) Yes it is 100% worth it, if not only for the business line of credit you can establish

2) Deals are harder and harder to find, at least where I am from and surrounding areas. Interest rates are high and prices are high.

3) Yes it can be a great way to start snowballing money, but remember some critical parts. Your numbers have to be near perfect. You have to include all the costs appropriately. Realtor fees, income tax, correct arv, correct costs. Its not uncommon for someone with little experience to overestimate how much they will walk away with and under estimate construction costs.  Materials and labor have gone up greatly in the past few years.

4) 50,000 but average home costs were only 200,000 at the time ( 25% down commercial loan). Depending on how you want to aquire the property, or flip, or whatever I think you need to strategize how you want to acquire property first then come up with the number based on a percentage of down payment + closing costs of the house prices you are targeting.

5) Talk to a few local bank lenders and see what first time home buyer programs they are offering. If your going to house hack and live in a place it can be a great way to get a property for much less than 25% down. Just bear in mind your payment will be higher the less you put down.

Hope this helps. Feel free to reach out if you have any other questions. 

Hey Davis welcome aboard!

Check out some of the podcasts they have a lot of useful information and you can listen when your driving or working out or whenever you have downtime. 

Another thing too if your looking specifically for a mentor I'm certain Dallas has a few Real estate groups see about joining one and looking for someone in person there. Just don't pay anyone a nickle, a real mentor would help you for free. 

Hes going to have to pay the income taxes on the withdrawal, plain and simple. Though if you can make him money, and keep snowballing that money, it will be more then worth it to him to do so. 

I think its better to partner with your dad and give him the interest and points instead of a stranger, this way you both prosper. Maybe he can purchase equity too instead of just issuing the loan, or both. Say youll give him 5% equity/profit if he loans to you for 2 points and 8% or 1 point and 5% , whatever you guys feel comfortable doing.