All Forum Posts by: Jacob Trogan

@Jay Hinrichs I haven’t bought this guys course but I have done this strategy - the 30k to 90k seems aggressive but I have done 25-50k spreads

Your premise of this being ethical lies in the fact of their ability to fix up the house it seems. Maybe I don’t understand fully. Well I worked for someone else doing this and then went out on my own. I also know everyone in Kansas City doing this and I have heard over 50 success stories. All of my buyers have been successes and either fixed up the property completely or 80% where I would live there.

I also fix up houses and sell them on terms after being fixed up

I paid a few wholesalers 20-25k in assignments a couple of times. So clearly the amount of money isn’t your problem because my understanding from seeing many of your comments is that wholesaling can be done ethically or unethically.

Are these wholesalers wrong to make that much? I think you could make a case that they are at times but at the end of the day the distressed home sellers have not been good stewards of their properties and therefore sell at a discount

I lived in Mexico doing missionary work for a while so I learned Spanish and the culture.

They hate debt and so never develop credit scores. Many of these people are business owners who deduct too much on their taxes so banks won’t lend

I love selling to Hispanics because they pay on time and have large down payments. I’ll sell to anyone with the down payment but most people don’t seem to have it.

I guess I’m different in that regard I usually ask for 10% down.

Every house I have sold in need of repairs they have fixed up

I ask them how much they did it for or how they did it, their cost is 25%-50% my cost because they get the labor part for free from their community or themselves

They are more community oriented than us white folk and really lend a hand to each other

I guess where this may be predatory is offering extremely low down payments which would also open up the buyer pool

 Probably a better decision. I also wanted you to be aware that having an RMLO on a wrap is not required if the owner has seller financed 3 deals or less (there are more stipulations) but for simplicity if she did want to do this she does not need to use an rmlo. I also recommend a contract for deed or land contract which would just put a cloud on title if it was recorded or sometimes they do not need to be recorded and this would avoid any fear of a due on sale clause.

I also want to reiterate what Jay is saying, unless the loan was being owned by a small bank it’s highly unlikely they would call it anyways.

I say this in case she does not want to be a landlord and just didn’t wrap because of fear due to various comments. :) 

 I am overly sarcastic over text a lot of the times. I was implying about the type of person the original poster is. Yes never get a 2.99% instead of a 3% flat or nowadays a 6.99% instead of a 7% flat.

If you look at the savings in interest over 30 years for .01% it is very small. It may be like $200 but what happens is the mortgage company will charge some higher origination charge of $500-600 for that rate.

so you are paying $500+ to save $250 over 30 years. So not a good deal. This is a very nuanced thing. I would be happy to defend this math to any loan officer who has sold a client a rate ending in .99. It is a promotional gimmick.

So to reiterate someone who wanted the bragging rights of having a 2.99% instead of 3% is the same type of person who would argue with every comment in this thread to prove they are right. It is a comment about the nature of the person nothing more. Velocity banking can work in some ways but it’s not as great as many who preach it say it is.

Most things in finance are very nuanced.

Have a similar situation with a contract for deed that we created, would love to talk a bit more on this LLC strategy

@joshua I see how the strategy can work, but nobody reading this thread likes you because of your horrible attitude. Also when I saw you got a 2.99% from Rocket Mortgage I knew you were a sucker. Rates that end in 9 are always scammy in how they rob you of hundreds of dollars compared to if you got a 3% flat. But you are exactly the type of person a loan officer would of sold a 2.99% to. With how fast you are paying off your mortgage because of your amazing strategy it doesn't even matter. And guess what you don't even need to be sad about that $500 you wasted on a 2.99 because you are saving so much money! Is your attitude always like this? Everyone on this thread you argue with. Regardless if you are right or wrong it was hard for me to read. So much negativity. I did not help with this and rant over. I wish you more happiness in your life sir.

if you find a buyer i would be interested in connecting - currently have 15 wraps - haven't looked at selling them yet

I have got over 50k in business lines but those were through business credit cards at 0%. Those were not a LOC - I probably could get a LOC based on bank statements which is what they look at for a BLOC but I am focusing on income for myself rather than trying to arbitrage debt. Income is the #1 way to build wealth, mines good for a 23 year old but could be much better!

I live in the Northland (north of the river). I am a hard money lender and used to do regular mortgages. If you are wanting to buy something that needs rehab I can help if not I can point you in the right direction. I am sure some other realtors will comment on this soon enough also. 

Reach out to me through a private message or comment in this thread if you are interested in attending something like this or if you know of one already happening... this would be for the Kansas City area exclusively right now. So Missouri or Kansas alerts get notified of this and let me know your thoughts... 

Anyways I have been holding a small mastermind with some now close friends who all have invested in real estate. We all met at one of Mindy's amazing events. I have not been attending the larger events like hers as much and want to get back to doing so but in a slightly modified manner. I will continue holding this small mastermind and plan to keep it that way if any of you read this... BUT I want to start something else... that is larger than just a few people but still has the close group of friends feel.

The group I currently meet with are all younger guys (under 25). This group has helped me take steps forward. I always like ruffling feathers and I think there are a lot of clubs that are exclusively women nowadays. Why can't men go? Because it allows them to connect more deeply emotionally and be vulnerable in some ways. So I thought I could do the opposite. That's right a good old fashioned mens club (in this case young mens club). Just like the concept of GoBundance which Brandon Turner loves and endorses before anyone freaks out on me. Anyways I was thinking something similar to this. This mastermind that I plan to hold would consist exclusively of 18-30 year old males... or whoever wanted to join... if they got the invitation.... It will happen eventually, for sure starting this year. I already am in contact with many young men who are in the real estate industry due to being a lender, but it is just a question of how fast I will materialize this desire. It could happen in a month, it could not happen until December. If you would like to get notified when this comes into fruition let me know NOW so we can communicate. 

Like I have said, the concept of GoBundance which Brandon Turner seems to emanate is the inspiration. But for those of you unfamiliar it is a mastermind of million+ networth individuals who are all men (I believe), they meetup and focus on success in various fields of life (not just real estate). I want to connect with others based initially on the common interest of real estate but also expand into topics such as health, spirituality, relationships, and anything else that interests others in their personal development. Also to clarify my conditions for getting an invitation may or may not be concrete and absolute or it may just be based on if that person fits with the values of the group... Will this get cancelled? Lets see I can't imagine the Kansas City crowd being that woke. The Californians haven't taken over this market yet I believe. We will see

So now writing this out I guess leveraging more would allow him to hold onto his cash and not have the risk I described above. So I guess my new advice is to leverage to the max on everything! We know that works out well... anyways my advice stands the same from earlier but I am curious what the risks are in real estate according to you Joe?