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jcfl1684,

were they just users, or were they cooking meth in there. it's a BIG difference.

-dean

yeah, just that it sounds like edwinreiloans4u is just bringing the deal in, but not really doing the rehab. unless he's handy with a skilsaw and a hammer, i'm not sure what kind of help he could bring on a part-time basis. now, if he means he handles the whole rehab himself with someone else's money, that i understand.

ctoilman,

on your 50-50 deal, i'm guessing that you also handle the rehab. is that right?

glenn already knows the answer! :D

the real problem seems to be getting cash flow in areas like SoBe mentioned. if you're not finding distressed properties to use as your rental stock, then you're probably paying too much, minimizing your chances for cash flow. surely, even in these overvalued areas, getting a house for 60-70% ARV can help you attain cashflow... then again , maybe not. i'm just glad i'm in texas!

back to the apts: i'm glad r2 is doing well with them, but i don't think recommending every newbie cut his teeth on a large multi-unit (large for me is bigger than 4) is very smart, or responsible... i know r2 thinks "this isn't even worth his time," but he doesn't let that stop him from reiterating his multifamily deals, and doling out questionable advice to newbies...

my name is dean, and i'm a newbie. i'll be sticking to small rehabs, rentals under $120 ARV, and multi's (4plexes). as long as i have a profit and i learn something, i'm cool. then one day i can dole out advice that will be helpful to people that actually know less than i do. i'd like to get to the point where i can pay ALL CASH, just like allcash has been saying for a long time. thanks allcash! :D :idea:

oh,and MikeOH, thanks for giving an opinion that seems reasonable to an underachiever like myself. i've been waiting for someone to give the other view on this "everyone that doesn't buy an apt building is stupid!" view that i keep hearing.

-dean

TallGray1,

I sent you a PM. Thanks.

-Dean

youngREI,

about your question regarding why would the reo give you a shot... i don't think those guys are withholding deals strictly for their investor "buddies." sure, there's a bunch of guys that have done business with them in the past, and they know these guys are going to stick to their word and get the deal done (if it's a good deal). these reo guys just want to get rid of the properties, and they're balancing holding time with price, and holding time is winning. if they know that johhny buysalot is probably going to buy it with a minimum of fuss, it's just easier for them to deal with johnny and a few other guys. after they give them the initial courtesy call, they throw it out to everyone. they're not trying to keep people out of the "club," and i'm sure the more serious investors they have, the happier they are.

eagerTexan,

Nice to meet you. I'm also from DFW (Carrollton). Seems like most of the 4plexes/duplexes in the north Dallas area are priced WAY above any actual inome they bring in. You pretty much would have to be driving by while the owner is having a heart attack. :shock: Or find something that needs some work and is selling at a discount.

Probably the best place to get good cash flow in the Dallas area with 4plex size bldgs are the lower income parts of town (ie. south dallas, parts of pleasant grove, east oak cliff, etc.). A lot of these places need some rehab, which is good for your bottom line. The downside is that while they're unoccupied (especially during renovations), you have people squatting in them (to live, or to go to the bathroom), and people will vandalize them for fun, and eventually they'll steal the copper out of the walls, as well as anything that has any kind of value. Plus, everytime you go down there you have to worry about getting car-jacked... But, I hear they have a good return. :D

thanks ryan. good to know. i get the feeling a lot of people out there (in Texas, anyways) are selling lease options without regard to the legal technicalities. probably doesn't matter 99% of the time. unfortunately, i'm always the 1% guy! :shock:

-dean

yeah,

interest only doesn't seem to be a good idea (to me, anyways). the only times i can think of justifying an interest only loan would be for a quick turnaround (hard money loan for a rehab), or if you were GUARANTEED to have substantial appreciation. but guaranteed appreciation isn't likely, so you're really kind of gambling...
anyways, there's a lot of more informed opinions on here, so weigh them all.

-dean

they changed their minds?!?

imagine that... :D

sucks that you had to put up a fight for something that simple. but, like the boys of beastie said, "YOU HAVE TO FIGHT FOR YOUR RIGHT!" (to close where you want to!)

-dean