All Forum Posts by: Fred Cannon

@Christian Walker unless you are paying cash for these rentals no way 9 homes can generated 6k a month. These post are all over the place with no background information.

@Kandice Manciel. Going thru the real estate course is a great idea and you will learn a lot about real estate law. Getting a license and maintaining it is an additional expense. You can use Zillow and other web based engines to see everything on the MLS or find an agent that you know and like to work with. I took vacation a few years back and did the real Estste class. It was one of the most interesting classes that I have ever had. I did get my license but to hang your license with a broker and have MLS membership is way to expensive and to try to be a part time realtor is foolish. That was my experience. So thumbs up on the class and good luck with real estate. Read books and read BP, but don't believe everything you read or hear.

@Alberto Nikodimov. If you are an agent and doing non commissioned deals on the side I think your broker should be made aware of these transaction and give his blessings. Not sure how ethical your partnership would be if it is the way you are explaining it. That's assuming you are a realtor. If you are a bird dog then that's different. You should have a finders fee and then a 90/10 partnership on each deal. That's the way I would handle this.

@Nat Chan. I was thinking the same thing. " what an ungrateful kid". But there is not enough info in his post. Not sure what he means by 50/50. Is that equal cash or maybe something else. If the Dad is putting all the money the kid should be happy to help him for zero, just like you helped your Mom. Also not sure how you can be an expert at investing with just one property. Maybe he watches late night TV. I do wish him luck but I would advise his Dad to look for a better partner.

@Christian Walker. Lot of information missing but here is my .02 as a Dad, and as an investor in RE. As a dDad it would be great to have this type of relationship with a son or daughter. I would actually be helping them out in the long run by building wealth that could be past on. As an investor on a fixed income I would welcome being a partner on a deal that I could afford and be comfortable with.

I think there are other things your Dad can help with. Showing the property when it's vacant, making minor repairs or doing maintenance between tenants, etc. As an investor you know there is a long check list of things to do between tenants. You Dad could handle those in retirement, giving you peace of mind and keeping him busy. A big win all around, especially as your holding grow to 4 or more homes. I think your Dad has more to offer that a 50/50 partner. Consider yourself lucky for his offer to partner with you.

@Rodger Curbelo you got some work to do before investing. Get your credit score up. Save up more money. Keep working at your goal. I would find it hard to rent to someone with credit score of 575 and accounts in collection. No sure you would be able to get a mortgage. But don't give up. Get yourself in a better position and save more money. One bad AC or one bad roof leak and you would be heading to foreclosure and lose your 20k that you have saved up and put down. You should start with a house for yourself or a duplex and then parlay that into a rental in a few years.

@Nathan G. I would suggest the Ft Myers Cape Coral area. If you pay cash for the home you could make the 10K but if you want it for yourself in the winter that might be hard. I would suggest that you check into a site that caterers to traveling professionals like nurses of medical personnel. I have a coulple of 1 bd 1 bath condos in that area that I rent to nurses. They normally require 2-3 months then move on to their next assignment. I make @ 8k annually after expense off a small condo so your 10k is doable This way you can have great renters and control what months you want to rent out

Just curious about BP opinions. I have 6 mortgage free properties that I bought around 2010 when the market had crashed. I am thinking about taking out my original purchase money thru a mortgage. Actually in would be much more that my purchase price. I paid anywhere from 30K to 45K for these properties (condos) and I cash flow around 700 per unit. if I took out a 75K mortgage (75% LTV ) I would still cash flow around 300 per month I am retired and like having the monthly income but it would be nice to get the money out as well. What would you do.

@Scott R. I'm with you I just look at cash flow. I'm not an accountant but I do know that 2 is greater that 1 so if I spend one dollar and I make 2, I have cash flow. I do like appreciation also. Good neighborhoods with cash flow. The basics of a great investment property. That's the way I analyze a deal. Everyone has their niche and different goals.

@Josephine Wilson not understanding why the rent is so low on a class A property. I would think you should be getting 1100 or more per month for a one bedroom in a class A area Especially if you are paying 250k for a duplex.