All Forum Posts by: Farley Youman

Tega: I wonder how many 17 year olds want to learn real estate! You are already ahead of the curve. There are over 80 ways to make money in real estate, but some are harder (or a lot harder).  I would learn what I do (hard money loans).  It is fairly easy to learn (and costs virtually nothing). When you learn the numbers of loans, you already have learned somewhat the "languages" of wholesaling, flips, and rentals.  You will certainly know the numbers of a good deal, and you are learning from your loan client's plans on being profitable.

Also, I see a meetup on Memorial Day at 5:30pm- is this still taking place even though it is Memorial Day?

I thought I had seen earlier this month on bigger pockets- a meeting posted (or a comment) being at 12 noon this coming Tuesday (May 30).  If so, could someone send me that information or post it? I am interested in attending any meeting on Tuesday morning or early afternoon. I need the time of the event and the address. Thanks.

One of the comments before is on target. Since the interest rates of the

banks went way up, any rate differences with loans will be negligible.

Without knowing more about you and your deal, I do not believe it will

be a good idea for me to compare rates for you. Good luck.

Denise: Wholesaling can be a great way to get into real estate, but I believe it is not as easy as a lot of people think.  I have been doing a survey here in Atlanta on whether wholesaling is easier or being a loan rep.  So far, the answer has been 19 to 1 that being a loan rep is easier.  However, let's hear from other "bigger pocketers": do you believe it would be easier for a new person in real estate to learn and do wholesaling or be a loan rep?

-After learning how to be a loan rep, you will know most "languages" of real estate anyway- such as wholesaling and fix/flips, etc.- because you will know how the numbers work and how to analyze what is a good deal. Also, as you do loans, you will learn great information from the investors if you wish to ever go into fixing and flipping later. Finally, you could do both wholesaling and be a loan rep. When you get a house under contract and an investor is interested in buying it with a loan instead of with cash- you just made even more money!

Oleg:

A lot of people on this post have spent time giving you tips for your plan.  There were a variety of suggestions, so you will have to decide which ones to put into action.  Based on your comments, it appears that this will be your first deal.  Location/location/location is always the advice, but with you I would advise as a consultant-caution/caution/caution!  That means reducing your risk for losing money.  I would suggest following the tips below to set this up:

-especially if you are going to do more than 4 units, or if you will not be living in the property, I would strongly suggest having an equity partner that has ample experience with success...you will have to share your profit to some degree, but this will greatly increase your chance of success

-assuming the partner puts some cash in to set up the loan closing, you will put in less of your money

-less cash means less risk; get a loan (instead of paying all cash) to reduce your risk...also, financially, loans give you greater leverage to get multiple properties which generally will give you more profit than just having one property in cash

Please contact me at 770-817-0559 if you have any questions. Thanks.

Allison: it sounds like you have a great plan- and who not does like beach property near Tampa!

However, beach properties- or even ones that are within walking distance are not cheap.  So, with 100K, you may need to set up a loan and also consider what it takes to qualify for different types of loans.  I have seen these types of properties not be able to refinance later because of a variety of reasons. One reason is that Lenders usually base their numbers not on Air BNB, but rather with a a 12 month lease agreement rate. However, we can use Air BNB numbers after you have been doing Air BNB for 12 months and have records.  I cannot give you the full picture here but would be glad to discuss your plans and give you some tips if you contact me. Thanks.

Lance:

Based off of your numbers, it looks like a good deal.  I would always suggest having another 10K cash reserve somewhere at the minimum for renovations- in case you need it for a surprise cost that you did not see coming. Assuming you get a loan, lenders do not normally like it when you come back after setting up the loan and ask for more money. Thus, in this case, you would have to come up with the money.

Since you said you do not have capital, and no one above addressed you getting a loan: Based off of the 95K on your expenses and an ARV of 150K, your LTV is 63%. Virtually every lender on fix and flips is doing 70 percent if you do not have experience, and 75% if you have ample experience. Thus, assuming your numbers are correct, it appears you have a good deal here.

Please let me know if you have any questions. Thanks.

Thanks Jason for the information.  Hopefully I will meet you at one of the meetings either this month or over the Summer.

The above posts are a few years back, but I have the same question. I am a loan broker that has been attending REIA meetings in Atlanta for the last 15 years. A few years ago, I started going to Chattanooga, Tampa, and Miami. Birmingham and Ashville, NC are next! Although I have been in GA most of my life, for some unknown reason I have never been to Birmingham or Asheville. What is normally the best attended meeting for May in Birmingham?