All Forum Posts by: Jack Saunders
Jack Saunders has started 9 posts and replied 37 times.
Post: Due Diligence is a scam
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
I am not sure if all stayed require due diligence money but I think it's just a scam. I have waisted money just to do inspections on as is properties. Yes it's better than buying a money pit but it's adding up. Is it possible to do inspections without DD if I am okay with taking the risk of the home selling??
Post: Everyone wants to buy a foreclosure until they get to see inside the property
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
Quote from @John Underwood:
We bought a house last year that we did see inside of.
It was in a great area.
The house was full of junk and cat poop. It smelled like money and we got a fantastic price!
I am not afraid of getting dirty myself and a crew. When you go to the auctions will they tell you upfront on the listing if you can or cannot go in it prior to bidding? I have interest in trying one out in the future.
Post: Looking for contractor with popcorn ceiling experience
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
I did find someone and what a messy job. I am still cleaning up dust lol.
Post: Private Money Lending
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
Quote from @Adam Schneider:
@Jack Saunders It would be VERY surprising to see a private or hard money loan for LESS than a conventional loan. There may be pre-payment penalties from different lenders. When we lend, we don't have a pre-payment penalty as long as the loan is a certain size.
This payment plan must run CONCURRENTLY during the period 360 months(30 years)
>>>>>>>>>>>>r>>>>>> Re-payment Analysis<<<<<<<<<<<<<
The Loan repayment was calculated at 4% interest rate compounded annually. Below is a summary of the repayment schedule for 360 months
Loan Amount (Capital) :_______________________$220,000.00
Interest Rate (R):_________________________________4%
Number of Months (N):w_______________________________360
Mathematically
Monthly Payment:
$1,050.31
Total Payment:
$378,112.91
Total Interest:
$158,112.91
Post: Private Money Lending
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
Quote from @Adam Schneider:
@LaShae M. Good questions. You might want to join the American Association of Private Lenders. Or go to a conference sponsored by one of the organizations that does them (PitBull has one in AZ coming up next week), if you want to learn about the lending world.
We require the borrower to be an entity and the loan purpose to be for business use (i.e. flipping). We require title insurance, hazard insurance, 1st position lien, deed of trust, and obviously a Promissory Note. We have the borrower submit a loan application on our website. You can feel free to check out our website to get a sense of it all...Oakwood Lending (we do loans in NC--so things might be different in D.C.).
Post: Do I accept a Housing Voucher?
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
Quote from @Ben White:
Hey Matthew. Not sure what your local state, county, and municipality laws are, but the first step is to see if you're even allowed to reject based upon the applicants voucher. The Fair Housing Act doesn't bar landlords from discriminating based on Section 8, but some states and municipalities do! Classified under "source of income". I find state by state information here on https://www.hud.gov/states to be a great place to keep up on all that. Here in Maryland, after more than 20 years of failure, lawmakers made it illegal in 2020. It is illegal in DC as well. This doesn't mean you cant reject an applicant for other reasons you typically would such as income, poor credit, or criminal background. Just always be consistent with everyone you speak to and every applicant!
All that said, and to answer your question, I think a guaranteed check for 66% of the rent offers some peace of mind and limits potential loss. A conventional income applicant, so to speak, could lose their job and pay you nothing. And as others said, section 8 tenants are often the most quiet and reliable because they don't want to lose this aid and they are grateful to have housing. I would screen as you always do and if everything else is clear, take the tenant! I think the risk is exactly the same as all tenants. Maybe even less for reasons I just touched on.
I'll spare some of the moral and ethical opinions on this, but I do feel we as real estate professionals, investors, and landlords also have an obligation to help provide housing to everyone. Even the less fortunate. Housing costs and rents are through the roof while incomes have mostly remained stagnant. There are going to be more and more people using vouchers as time goes on and we certainly shouldn't stigmatize them or view them as more risky.
Good luck and I hope everything works out. Please do report back to the post. Would love to klnow how it turns out!
Post: How to find off-market BRRRR deals?
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
Having a good loyal contractor who works with you to make money will help you find deals. My contractor works on many homes and he at times will find someone willing to sell off market. I work full-time and do not have the time for knocking doors, cold calling, etc.
Post: Bike rental - Money maker? or Headache?
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
I personally like the sound of renting bikes. I would research the competition in the area. I suggest electric bikes with GPS trackers, that will provide something for us out of shape older folks š.
Post: How is anyone making $ right now?
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
Quote from @Jay Hinrichs:
Quote from @Ell Jay Lindsey:
Quote from @Jay Hinrichs:
Quote from @Ell Jay Lindsey:
Quote from @Jay Hinrichs:
Quote from @Travis Biziorek:
The only answers here are you need different markets or better deals.
That said, if you're executing a true, full BRRRR it's a bit unrealistic to expect to get much cash flow after the fact.
If I can get all my capital back (or real close) I'm content with operating at break even. It's essentially a free property and rents will go up over time, etc.
We're still doing plenty of strong cash flowing deals in Detroit but there's a balance. The more cash you end up leaving in it after a BRRRR the less net cash flow is left (generally speaking).
Or god Forbid you put some equity into the deals.. the idea that you can buy reahab and refi and not have any money in the deal works in very specific markets it simply does not work in most though so you dod the deal and maybe you get 70 or 80% of your cash back if you want to break even or cash flow positive.. if you want all your money back then U take negative cash flow until you refi and rents rise both might happen in a few years.. so temporary negative cash flow.
Virtually every investor on the west coast that is paying wholesalers or off MLS etc with all money returned on refi or minimum down will be negative cash flow for a few years.. but then appreciation kicks in and thats were real wealth is created not making 200 a month.
totally disagree with this statement.
"
But if you are going to do what you said above then itās not a real ābusinessā that supports itself until time passes. "
its a real business might not support it self day one with zero equity in it.. but its real and those that buy those assets are the ones that get wealthy .. far more than those that buy assets that do not appreciate or if they do very little but collect a few bucks a month which you know what happens to that it gets pissed away .
they dont is the answer not at that level.. if you have max leverage you need LOTS of doors LOTS of debt.. most that do this have other income or those in the business have transactional income like flipping homes then keeping a few a year .. your in the business but you cant live on rental income alone unless you start with a ton of equity up front or build up a large number of doors and all the assocciated debt that goes with that.
Post: New Investor Greensboro, NC
- Rental Property Investor
- Greensboro NC
- Posts 38
- Votes 21
Hey Derrick,
I am native to Greensboro and just joined BP as well. My main investments have been rental properties locally. I am working on my first fix and flip now.
Reach out sometime if you need advice.