All Forum Posts by: Michael Seutin

On this thread I would like to know the opinions of professionals if a beginner or an investor with a few years experience wanting to make a living from real estate would be better off putting all of his energy into
- Buy and hold for rental income, or
- Wholesale properties, or
- Flip properties, or
a combo of each which would make someone probably less knowledgable in any one area.

How many of you are actually landlords for a living.
What I 'd like to know is when did u start investing, how many properties do you have and how much true cash flow do you live on. And what is your main strategies you use to buy properties, how do you find the down payments.
I would like to excluse people who were born with money or given money or real estate. Only self made investors for this thread.
And more specifically buy and hold, landlords, not rehabbers, flippers or wholesalers..

Ok, let me ask a more specific question on owner's financing. I am curious as you how you would or others approach it.
Let's say I told you I had a property in Indiana that I want to sell for $40,000. And the rent is $700/month. Not quite the 2% rule ratio but close. Let's say you were interested right now in buying it not for a flip but for long term rental. How would you approach me and what terms would you offer me including interest rate, down payment etc..
I am real curious as to the specifics of each of your answers

Since I read in othe threads that doing owner's financing can get no interest under certain terms, it seems that owner financing is cheaper that finding Private Money?
By the way it also seems that Second to that would be conventional financing is the second cheapest ?
Is there an order of things where for instance: Owner's financing is the best, conventional second best, Private money 3re, and hard money last.
what is the best and cheapest financing ?
Last are there credit cards that have below 10%interest for 25k rehab deals ?

First I don't want people confusing private financing with hard money. Here I am NOT talking about hard money lenders but only about PRIVATE FINANCING.
My Question:
I want to have access to 30 or 40k and my ideal terms would be to get the money, find the property for buy and hold, buy it ant then repay the loan over 30yr fix at prime rate (around 5 or 6%). And ad a balloon payment in 5 to 7yrs.
each payment would include 50%principal and 50% interest every month.
Now to make the lender feel comfortable I want to back up his loan with an option to foreclose on me if I don't pay according to the terms.
1. How do you set up the paperwork so that his loan is backed by my real estate, do you get a real estate attorney?
2. I work in a hospital around doctors and nurses that make pretty good money, how would you approch them for such a request:
- would you present a business card, or a type of brochure explaining the terms, how would you word it ?
- I was thinking of possibly have a business card and a website where potential private lenders would go to and see all the terms I would offer. Need help on wording and best terms..
Lastly, could I get the money first and then find the property or do I have to first spend in flying trips, hotels... to find a property but then run the risk to not find financing after that...
While I am at it, are there any credit or credit cards that offer access to 30 or 40k at less than 10% interest/?
thanks, I know that's a whole lot of questions

I have this duplex that need about $80/month worth of lawn mowing care and bush trimmings.
I am willing to spend up to $4000 to replace all this lawn for a front and back yard that would be maintenance free, or very cheap to maintain.
Of course the cheaper the better, what do you guys think I should replace the lawn with, I would use a landscaper to do it, I am too far away.
Any of you ever done such a thing as an investment.
It 's the same as investing 4k to make $80 a month, that's actually a good return on investment. That would be the equivalent of a 25% return on my money.
By the way any other money saving investment ideas for rental properties would be welcomed.
thanks

Well guys I was trying to get cities that cash flow great with population increases.
Instead you guys want to advertise your business which is fine but then I will have to tell u about my situation.
I just ran out of cash after my last purchase a month ago. So now I am looking for properties in the 10k to 40k range that will fit the 2% rule more or less.
Only thing I need help with 100% or 95% financing, I can use my credit card for the down.
I need a financing maybe hard money but I don't want more than 10% interest, and possilby a rehab loan.
See if anyone can still help me or is that just too much to ask ?
Or maybe a private insvestor is reading this and wants to earn 6% on their money backed by my next purchase, then I need 25k to 50k and will pay 6% over 30yrs with a balloon in 5 yrs.
thanks

I am looking for cities for buy and hold cash flow, possibly that fit the 2% rent/price rule ratio.
My main requirement is that there has been a population increase and not a population decrease as in many markets that cash flow well such as Detroit, Cleveland..
Please list the cities that would fit that crateria,
thanks

Well I thank everyone above nice enought to contribute their opinion, all of them are appreciated and helpful.

I understand the calculation from the point of view of 100% financing. And ideally if cash flows at 100% financing, then it is definately a great deal. I am not there yet. Plus I am not sure I want to invest in areas that do that, cos it seems a lot of those areas are losing population and so possibly future declines in sales price and rents..
But I am looking at the properties I have now, the way I financed them now. Well according to the 50%expense rule, I have 2 that lose money and one that makes money. So again I m trying to figure out if it's worth keeping a couple houses that lose money but might break even soon, and could appreciate a bit due to the fact that Austin is a sought after market or should I sell now?
I like the advise above, saying that I should maybe wait til at least summer..
thanks Eddie