All Forum Posts by: Drew Cameron

I maybe should have mentioned that the funds come via revolving debt like a credit card. The 10% is immediately taken so to make the numbers easy if I get 100,000 then I get the credit with 10,000 gone and 90,000 to use. Then there are minimum 1.5% principal only payments due each month only on the money used. Lastly the investment group has the investor put up 10% down payment and they cover the other 90%. The investor then is responsible for the rehab costs using the mentor groups contractors and budget that they set. This budget is roughly 20-30,000 on average. So if I were to get a deal quickly I could use 10-15,000 down then 20,000-30,000 for rehab and then make 20-50,000 profit for the group with 65% coming to me. With one flip I would make my money back and then some. Since the money is revolving debt I could do multiple flips without tying up my own money and leverage that into more profit and deals. I'm really leaning towards doing this. If anyone else here is based in Phoenix or Maricopa County I would be happy to set you up with the people who do this.

Hi Mindi Leach . Welcome to BP. There is tons of good information on here and great people with lots of experience willing to help you. Congratulations on taking your first step and happy investing.

@Michael Woodward I've been a part of this investing group for awhile and have faith in them. They constantly are doing deals either wholesale or fix and flips. I think the leaders are in place to lead us and have good intentions. They also have incentive to help us because they joint venture with us on all of our deals as our eyes and ears. I'm just leery of the financial group because they do no asset loans. It just seems too good to be true.

I went to a meeting two nights ago and heard a pitch for startup money. The basics of it were if you have a credit score of 680 or higher you can get up to $150,000 for a 10% flat fee up front and 0% interest for the remaining 12-24 months of the term. The total dollars and the length are determined solely on your credit score with no other factors like debt to income or assets considered. The worst case scenario is a 12 month term. This is only offered to members of a mentorship program that I am already involved in. The pitch was here in Phoenix, Arizona and seems almost too good to be true. In the mentorship program they have a level called arm chair investing when they bring you deals and joint venture for a 65% profit split going to the investor and 35% to the mentorship group. This group is involved with flips so the profits range from 20-50,000 per flip. The scenario is win win win. The investor gets funding for cheaper than hard money and the money is revolving for the term (in the form of credit cards at 0%), the group gets more students to mentor who couldn't otherwise afford the fees, and the financial company gets a bunch of new clients at 10% with little risk when the investors are getting walked through flips that earn thousands of dollars and are doing deals weekly. Am I looking at this scenario through rose colored lenses or is it really to good to pass up?

200k is a lot of money to have free and clear. I would go to some local meet ups or reiclubs and try to network with other local investors. Phoenix has lots of investors and good market for buy and hold and fix and flips. With that much money available maybe other investors bring deals to you or you can joint venture with someone you trust. If you plan on working another 10 years buy and holds might suit you better. Phoenix is showing good appreciation right now so in 10 years you could cash out and retire comfortably or hire a property manager and enjoy the monthly cash flow and hand over an empire to your family.

@Ally Garcia I think that different counties or states can vary, but there are several programs for first time buyers. I've heard of people in Phoenix getting as much as $20,000 for a down payment. I would just ask around and do a little research in your area. Best of luck!

So I have been on here for a few months now and have been getting plenty of good advice. I have been a server and bartender in fine dining restaurants for the past few years. While working nights has been paying the bills, I feel like it is hindering me as most calls come on nights and weekends. The past few years I have been making about 45-50k a year. I have done a couple small deals and  been able to save up enough money to live for 6 months. I like the security of working my job and having income coming in, but I also feel like it is holding me back in my investing career. I don't have any buy and holds, so when I don't work I have no income coming in. My question is how do you know when the time is right to quit your job and go full time?

If it's your first house there are grants you can apply for to help you with a down payment. I like to keep my risk low so I would try to pay off the loans first, but REI is all about leverage. If you get a deal to good to pass up I would do it. Equity is always a good thing.

Welcome to BP. I'm curious how the market is there. I grew up in Merrimack, NH and my mother is still there. I'm looking to invest in NH and get back that way sooner than later, but am still stuck in Arizona for the time being. Good luck and happy investing.

Ultimately it's your call to make. Some key questions to ask yourself though:

If I buy a house for me, when will I be able to save up for a down payment on an investment property?

Am I willing to sacrifice a little now to prosper in the future?

Who do I know that can help me grow my business?

If I do buy a house to live in, what can I do to add to my income or lower my expenses to be able to invest?

I know the Seattle market is fairly expensive, but it is a great market for fix and flips. Depending on your comfort level and being able to find a joint venture partner or hard money lender that could be an option for you to accelerate your investing funds. Good luck in whatever you choose and happy investing!