All Forum Posts by: James Ehrig

Wholesaling is completely different. There is nothing illegal about buying and selling houses. When wholesaling you have equitable interest in the home. 

Eventually you ("you" meaning people in general)  will start forgetting a lot of what you have learned until you apply what you have learned.  Be sure not to fall into "analysis paralysis."  From experience: someone can tell you over and over how to do something but it does not really sink in until you do it.  Take massive action. Take the next step and push your fear to the side and make it happen. Fear is the number one motivator or de-motivator in life. Fear of the unknown, but the good news is: the more action you take, the more you learn to manage your fear.  Good luck. 

Having a home equity loan or home equity line of credit when you're trying to refinance your mortgage adds another layer of complication to the approval process.

That's because the second mortgage holder, which is legally entitled to move into first place when the first mortgage is refinanced, has to agree to give up that spot to the refi lender. If you can't strike such a deal, called a resubordination, you'll have three options.

Pay off the second mortgage.

Consolidate both loans with the second mortgage lender.

Forget about the refi altogether.

A resubordination is possible it takes more time and fees.  According to BankRate.com

I have never heard of "investing in real estate" being illegal.  It is absolutely legal. What type of investing are you specifically referring to? 

 I third this notion. 

Hey @Alton Guyton,

House hacking is definitely worth it.  The very first deal I did was a house hack with a duplex and is still working out fantastic.   Be aware of all of the expenses involved and be realistic. $900 per side in rent with a mortgage of $1200 does not equal only $300 a month for a payment.

The expenses to consider are:

Principal (on mortgage)

Interest (on mortgage)

Primary mortgage Insurance (when applicable: typically 1% of mortgage)

Property Tax (1%-3% of assessed value)

Property Insurance (.4%of assessed value)

Maintenance (8% of rent)

Management ( 8%-10% of rent should always include management even if you plan on managing)

Utilities (people tend to forget about this one... Because it is a duplex chances are the water is not metered separately and sewer lines are also tied together. Therefore the owner will typically pay for these. Water, Sewer, and Trash could add up to $150-$200 a month.)

Reserves (for Cap X)

Vacancy (5%)

Good luck!

Hey @Jeff Ausdemore,

I would say those are great sites for marketing for renters.  I have had great success utilizing the same websites. If you are offering a good product at market rates there will be no issues finding quality tenants.  Landlordstation.com also offers pretty great screening. It offers background, criminal, employment, credit, previous addresses and known aliases.   As you mentioned before the key to great tenants is a great screening process.  If they property is nice then the tenants are more likely to keep it that way. Also,  an iron-clad lease agreement to "scare them straight"  also helps.   Happy Fishing.

@Camron Cottam

Are any of these people Millionaires and financially free?  If not,  do not take any financial advice from them.  Just nod your head and be silent.  They will all start to be silent when they see it working and you quit your job without worrying about income.  

Sounds like a good problem to have. Just tell Bob that you do not want to inherit any of it.   Sounds kind of like a selfish request, should instead be grateful. 

You may want to look into a HELOC on the property as well. A HELOC is a line of credit secured by the property and it will leave the existing mortgage in place. It can be used just like cash. You can use and pay back, over and over. They are a little more difficult to get on a rental properties but it is possible. It depends on the lender. Some will and some won't, but it is a very effective strategy to acquire more properties.