All Forum Posts by: Gregory Walter

@Gregory Walter 19% is pretty good, is that with or without mortgage in your figure? agree that if he is loosing money from renting that it would be better to sell and capture that equity, use it towards purchasing some more property, but we don't know the OP actual numbers, mine were just estimations based on what he supplied and comments that he should sell the place without knowing his numbers. He is looking to refinance the property out of a construction loan to a lower rate fixed loan and keep the property. The best thing for him to do is check local smaller banks for that.

I can't imagine being invested in real estate and only getting a 10% return either. North Carolina is a great market for locals there. You know where else is a great growth market where you can get much higher than 10% returns with minimal risk? San Diego, CA ... no need to hop on a plane.

@Jameel Tillman Welcome to the Site. They say, when you don't have money to invest, invest your time. You can find an owner to carry house for around $5k down. You just have to find the right owner. Some will, Some won't, so what. Remember that phrase, when you are dealing with home owners, or you will get discouraged with these people. They are not investors so they do not see it the same way. Also, you can try and advertise for people who can't make their mortgage payments. You can come along and pay back all the past due amount, and Partner with the Homeowner. Their payments shouldn't be that much, maybe a couple thousand behind, maybe up to your $5,000. I always try and do a 50/50 split on profit with the home owner. They move out, I change the LOCKS, THEN i pay the past due mortgage. If you do not change the locks, the homeowner could move back in when you pay the mortgage, and screw you over. They then stay there, and you can't do anything about it, and your out the money, because they couldn't afford the payment before, now they will just go back into foreclosure after a few months and lose the house. There is a few steps to this, but you can do it.

Start an LLC, with you and the Homeowner. You will automatically be 50/50 partners in.

Next:

Have the HOME OWNER sign a Quit Clam Deed into the Name of the LLC.

This way, the LLC owns the house and you have control. It's always about CONTROL in real estate.

Rent it out and split the Cash Flow and Equity. Sell it in a few years, or immediately if there is a lot of equity you can get at.

Read some Books. What have you read?

Try these: These are 3 of My Top BOOK Recommendations. 

Rich Dad, Poor Dad by; Robert Kiyosaki. 

The Richest Man In BABYLON: by; George Samuel Clason

Straight Path To Real Estate: by; Kris Krohn

Hey, I'm Jameel Tillman. I'm from Charlotte, NC am currently still living here, i"m 24 years of age and work part-time at UPS but, I'm looking to become a full time investor. I have little cash saved up(little under 5K) and a credit score in the mid 500's i know it maybe hard for me to start-out under these conditions but, I'm one of the mostly hardworking and dedicated people on the planet and i know i can make this happen in achieving my dream! any advice, direction, or any type of help is greatly appreciated also, i am willing to put the time in effort into learning and helping. Thank in advance!

David. Although, modular homes are a logical idea, many municipalities prohibit the use of modular homes as they are not built to some building codes and standards in many areas. this may include electrical, plumbing or construction design. My uncle once had a large beautiful house in Massachusetts built that could not be utilized in my area in New York. While it looked like a properly built home it, could not pass my local building specifications. 

@Adam Schneider

If he bought it for 300k and sold it for 240k he would loose money. The thing here is it's up to him, if he sells it for 240k owes the bank 132k leaves him with 108 minus about 15k for realtor and closing, now he is at 93k. Assuming that he has about 50k into that he can deduct that leaves 43k that he will be taxed on ( say 25% tax rate) or roughly 8k that leaves him with profit of 35k. so he would have his original of 50k + 35k so 75k to put down on 2 places. OR he could keep the house, tap the equity, say 70%LTV ( 168k ) minus the 132k loan, would leave him with 36k to put down on one or two houses ( depending on cost) and still have the original house. that will add another $170 / month to his mortgage, so he would make that much less per month on that house. Selling a house isn't always the answer and there are different ways to " play with somebody else's money" , if the value went up that much, could his house go up even more ? that's for him to gamble on.

@Adam Schneider, just curious and for any readers of this post to learn, you said you would sell based on the property being worth 240k, he has a 132k loan on it and rents for $1500/ month. why would you sell it with it showing those numbers ?

Reason i was saying to keep it is ( and we don't have these numbers, just estimates) I figured he probably has about 50k into it personally, if he is cash flowing $500/ month that results in a 12% return on his investment a year, that's a pretty good return (COC). I wouldn't base it on any CAP Rate figures and if you did the lower cap rate would signal a steady income and not the profit he is making.

he stated that he wants to refi it, which i think is a good idea, If he is going to refi the property he may want to think about pulling some cash out and using it to purchase another property.