All Forum Posts by: Matt DuSold

Man a lot of good thoughts here, that's what makes this a great place!

Bill, as far as lending, I know people would want money at 10% or maybe even hard money. I haven't thought about it too hard just a thought of income if prices for a rental were too high. I may even like JV'ing on deals more. I like the teaching aspect and would love to teach people in a non guru way but making it a win win for everyone. Just a thought.

I guess I never really kept it simple, if the numbers work the numbers work no mater what market conditions are. If I can comply with a 40-50% (controversial I know) and rent for 2% of purchase price there is no reason to pass it up.

Thanks for the input everyone!

Charles- I agree it seems it is starting to pick up here as well. Property is moving quicker and it seems money is becoming easier to get.

Dan- I think you are right on. The main reason I would want to acquire rentals is for diversification. I guess I have t weigh how badly I want that, and I don't think I want it bad enough to make a "poor" investment.

I guess my questioning stems from my age, how long are we typically in a buyers market or sellers market? I know the boom happened in 2005 and we are just now recovering from it (possibly) although I know many people say we will never have anything this bad again. I was in highschool as the market was going up and back then I probably had no idea what any of this meant so I am a little uneducated on the subjerct. Looking at past data, on 20 year increments so I could be wrong, it seems like there is a swing roughly every 5 years? I know I am asking a lot of questions that are hard to answer, I am just trying to figure out what my best long term strategy is.

Thanks for the help again!

I have a lot of questions about buying rentals but I guess it really comes down to how long will this cycle last to be able to purchase property so cheap?

I ask this because I am starting to finally get cash coming in from other projects and my end goal is to have passive income coming in as a security blanket of sorts. I wish I would have been at this stage a year or two ago, but what are you going to do? I guess my questioning comes from my lack of experience in a sellers market. I know you can still acquire rentals but they must be so hard to find at prices with a deep enough discount, especially if you were to compare to our current prices today.

Would it be smarter to continue to build the fix and flip business and hold on to cash and try to leverage the money into a way of lending and then go wild when the market turns down again? I feel like such a newbie asking this question but I guess that's what this is for.

Thanks for your help in advance!

Hey Manuel there is a lot here and I am going to try and stay simple hopefully not too simple.

First, good job on ignoring the negative vibes out there. You will get tons of them and as long as you have a good plan and you stay on it you can achieve whatever you want. Everyone is told to goto school get good grades get a job, personally I'm not wired that way but everyone is different. A lot of people on this site are the same way and we have all seen tons of negativity.

The most important thing I can tell you right now is get educated. You say you want to learn rehabbing or landlording, I would pick something and stick to it. When you learn it and learn more about real estate then see what else may attract you. You want to keep your money safe so I probably wouldn't tell anyone you have it. If you have good credit maybe bring that to a deal.

The absolute most important thing you can do is find a mentor in the business, or many, who will allow you to learn. A good mentor may be able to use your credit, but most importantly you'll be able to learn about this business and not needing millions of your own money to be successful. The more people you surround yourself with that are knowledgable the more successful you will be in this business.

Everyone is different and everyone has gotten to where they are different ways so it's hard to start where someone else tells you because you will get a ton of answers. What just about every person on this site will tell you to do is get a mentor, or a few, and become educated. Keep reading and studying real estate for whichever path you choose and find people who are doing what you want to do successfully. When you do that you will start to figure out things to bring to the table and you will naturally start making money as long as you keep working hard.

Hope this helped!

Yeah from an initial look I am seeing somewhat of what you are too, Michael. It seems you can get a place for 10K and put another 10K into it to make it livable. I have seen places that are right at 20K though and are very rentable.

I am just trying to find more details on Milwaukee. I know the city is putting about 20 Mil a year, since 09, into those areas to try and revitalize them so I am just trying to get a feeling of how bad they really are. I am there in the day but never at night. Maybe I just dont see them as bad as others... I dont know. I have looked at crime rates which don't seem ridiculous to me either.

If anyone knows anything about the 53206 or even more so the 53212 area I would appreciate it!

Nathan,

I have to echo what Michael said, that is an outstanding post! I appreciate the way you really broke it down. Thanks!

Thanks Kevin! I will try and get a hold of him. I really wish I could have gone to the summit. It sounds like it was VERY beneficial.

Milwaukee has me interested, and I want to know who has experience out there that can shed some light. I am up there for work at least twice a month so I am starting to know the area pretty well and know to stay as close to the city as possible.

But when looking at property, some of these places are CHEAP. Obviously a lot are cheap for a reason and I have seen past posts on here saying to stay away from certain areas. Maybe its the fact that I have seen how expensive places are on the south side of Chicago so I figure it cant be THAT bad... I am trying to understand this area a little better. Does anyone know how the 53206 area is? Seeing duplexes for 10K and put 5K into, that you can rent for 1000-1100 in an area that doesn't seem all that bad. I feel like this is something people would be doing all day long.

Maybe I am just not seeing some areas of Milwaukee as bad as I should... I would like any insight anyone has on Milwaukee though!

Definitely Nathan, that is one of the main reasons that Chicago isn't very desirable!

Wow Mike, thanks for the reply! Like Jon said welcome to BP! How are you finding the DOM for rentals? Obviously it's easy to find on the MLS but as far as rentals goes, do you just watch them and keep a spreadsheet of when they go?

Ryan, you use 1% a month? According to most on the forum 2% is a good rule of thumb. I was looking at Indiana, Indy itself is kind of far away thats partly why I think I will go up to Milwaukee. Especially because I am up there for work several times a month anyway. Unless you can convince me otherwise... Haha

Thanks for the help guys!