All Forum Posts by: Cynthia Calhoun

@Alex Applebee Congratulations! You are to be commended. Awesome job! NEXT?!?!?!

@Austin Hughes / @MikeE.

#1. Technically...Lease Options are illegal in TX. 

See: SB 629, authored by Sen. Eddie Lucio (Brownsville, TX) and sponsored by Rep. Harold Dutton (Houston, TX), 'and' HB 1823, authored by Rep. Harold Dutton and sponsored by Sen. Eddie Lucio.

#2. "If and when" you do a lease option in any other states...You should "never" label it a down payment, your contract "must" note that this up-front money is an "Option Fee". Then it will stand up in court as non-refundable.

@MikeE.

You are brave to throw yourself out there for all to see. I did the same, and I must say, it's liberating. OK, so I think the hard lesson and the sad truth is that you were deceived by people posing to be professional consultants. That's where the most harm comes in; however, any day you don't lose money in a RE transaction, is a not necessarily a bad day...maybe not a good day; but it could have been much worse! Chalk it up to experience, and a lesson well learned.  If you went with your own insurance provider, then, you may be able to decrease that premium amount significantly. I believe I got a quote from Memphis Invest once; and ask their insurance provider came in at around $780/year. That was including storm "and" flood insurance. Just my thoughts; but congrats for the leap of faith and the life lesson. Time to move on to next...

@Mike McConnell, 

I'm a bit "tardy for the pardy"...but I will say this...I've taken a class titled "Knowing Your Investor ID". It's an amazing class, and most (including me) come into investing, not knowing there even "is" a such thing. It simply teaches you how important it is to know and find your "sweet spot" of investing. What investing strategy makes you happy? While I thrive in the arena of Fix and Flips, it makes my husband crazy to swing a hammer, and tear down walls. I like adding value. He thrives in wholesaling...the quick in-n-out project. Same is true of each investing strategy...each scenario depends heavily on your strategy and your intended outcome. Most here appear to be answering your question based on "their" goals and/or strategies; but this truly only depends on what your goals are. I would never use this strategy, but I also now know of a mortgage pay-down strategy that will have you owning this home free and clear in approx 5 years; saving thousands; but it takes definite discipline and commitment. 

Another fact I don't remember reading, is age of the house. That can determine when you will expect certain repairs; but no matter the age, you could also purchase a homeowner's warranty.

@Tyler Sherman

Welcome Tyler!

Congratulations on your recent graduation and on becoming a 1st time investor/landlord. I know this site will help you with your investing goals - we've got a ton of investment knowledge (in the way of community) as well as online resources.

If I can help with anything related to real estate investing, just let me know!

@Jean Paul Rousseau. 

Hello,

1st of all, Very smart of you to appoint your children as members and use that structure as a strategy for tax savings, investing, etc. 

2nd, I'm so sorry you were steered in the wrong direction for your Ga properties in Stone Mtn and Riverdale. I live and invest in GA, and both areas tend to be good rental markets; but you absolutely "must" know the "hot pockets" (and cold), in order to pull the proper returns out of your investments; and I think that's something the company didn't proper explain to you (assuming they knew). Carterville, GA is another area that would depend heavily on knowing the pockets. I tend to steer aware from each of these areas for different reasons; however, if I were to invest in a buy and hold in either of the 3 areas, I would only do so if each properties...

A.] Is occupied with a long-term, good paying (or S8) tenant who wanted to stay. 

B.] Has rental and occupancy history to warrant the risk.

B.] Has ROI of at least double digits.

C.] Has a performing PM company in place.

I know this doesn't help you in hindsight; but in future endeavors of any US properties, (at minimum) it would benefit you to follow this formula. I hope this helps a little, and I wish you all the best.

@Doug M. Thanks...

Yes, it was difficult to write. Hell, it's difficult to own...and I actually typed it, then erased it...but I realize acceptance and ownership of our less-than-perfect decisions is the 1st step. Being open about it is what keeps us humble. Humility is what assists us to consistently learn, grow, and ask for help. Being transparent (naked) about our mistakes is therapy. It's "the most free we will ever be". 

Hi @Matt,

Find a professional who's not vested in the outcome, and get their opinion!

If not the above: @David Dachtera is right on the money, with the commercial loan scenario...I'd take that route for sure. If not, then I'm of the same opinion as @Brent Combs and @Doug M. Run!!! Plain and Simple (or at least bring in an unbiased party.

It sounds very similar to a scenario I encountered a little over 3 years ago...I will spare you the sordid details; but I hear "all of the same optimistic quotes". I spent time with these people, and felt they had my best interest at heart. It was to be my 1st commercial project. I had read, researched, and learned all I needed to know about the project, on my own (or so I thought). The key players said all the right things, the numbers looked good, and I even had a "30-day money back guarantee" on my EMD! Well, 3 years later, I still get sick to my stomach when I think about how gullible I was...the broker was less than honest, the attorney was less than honest, and the seller was less than honest...and I was less than educated...so I lost a hefty sum of money!

Beautiful property, BTW!

@Ryan Etington...Congratulations!!! I love hearing success stories! It's an awesome feeling to accomplish your vision. I have also been of the persuasion that multi is the fastest way to cash flow; but I jumped out there a few years back into a value add project of 100+ doors. Rookie move, "and" it was my very 1st project! Well I had come across a less-than-ethical broker, and I lost the farm house...(thankfully not the farm but) definitely enough money to hurt! So Kudos to you for getting educated 1st!