All Forum Posts by: Michael Seutin

The way I am thinking is not to pool anybody's money together but to get one person for each property, so I get a guy for instance who is willing to earn 8% on his 40k he has saved. I get an attorney to draw up a mortgage, I buy a property for 40k, I reimburse the guy as agreed, and if I fail to pay, he gets the property sinced it's mortgage. Would that still be dangerous?

Consulting an attorney is expensive before even getting started, would a phone call to the SEC work? or another organization maybe

Yeah I kind of heard about that issue here and there but I am not clear as to what's legal or not, cos I see ads in real estate magazines of companies offering a percentage to investors on their money.
Ok thanks anyways

What do you guys think of this plan?
I buy some mailing database of doctors, lawyers... I either email them or mail a postcard to ask them if they would be interested in getting 8% on their money backed by real estate, and set up a website where they can see more details about private lending and do it online. I would also get an attorney to write the contracts and mortgages. Then I would simply use their money to buy rentals for myself and pay them over 10 years or 15 years.
Any suggestions, comments?

Another question of mine.
On this thread I would like to know how real estate investors find their properties, for example do you use a realtor, do you advertisse on craigslist, other website, newspaper, what kind of ad are you looking for or what kind of ad do you write. I know that if you are an investor that invest where you live it's easy. But I am an out of state investor, so I would like to know how most other out of state investors use to find their buy and hold for rentals, or rehad and flips...
Please specify also if you target long term for cash flow or flips or wholesaling....

Great info Mike,
keep it coming guys, I am sure there are more full time landlords on this site, I love motivational stories..

First to answer you Brandon, I came acrosse the book just browsing at Borders, I like there so I took it home.
Aslo yes a Rottie named Thea, she is 10 mth old, the love of my life.
Now for Eddie. While 15k might not seem like much for some people, and there are times when it's easy to save, I have put 40k plus in my last rental. And now even 5k seems like a lot.
Plus there is a learning curve. In the past 3 years I realize I have put about 80k in down payments for rentals and for what: not much at the moment. Will try to recoup my money when it's time and do it better after for better returns but still won't be enough to make a living off of it.
So while I love rentals and won't give up on it, I might try something that requires a little less cash at the moment.
Plus you told me about Birmingham and yes the houses are way cheaper over there compared to what I paid for mine, but it seems that most houses under 50k are bought cash by investors. How often could I buy a 50k house cash, not oftern enough.

Could you explain your formulas? I am familiar with the 50% and 2% rule, but a bit confused with your formulas:
"Here's how I'd analyze the deal (using the 50% rule and $100/door):
monthly payment (M) = (700*.5-100) = $250
M*(12/.06)*(1-pow(1+.06/12, -12*30)) = 41697.90
M*(12/.07)*(1-pow(1+.07/12, -12*30)) = 37576.90
M*(12/.08)*(1-pow(1+.08/12, -12*30)) = 34070.87
"

Ryan,
Thank you for you great and detailed explanations, I couldn't have asked for a better answer,
I will use this knowledge, as I have only focused on buy and hold as rentals and I had to work hard to save for the down payments as you said, so I am thinking of trying some wholesaling while I accumulate enought for another rental to acquire.
I am reading a book that's interesting it's called: "Getting Started in Real Estate Day Trading" about wholesaling.

Hi,
I don't know your first name above but thanks for your post and you do make a good point regarding people who were lucky enough to be born into money or real estate, and no I will then not reject any advise from anyone.