All Forum Posts by: Jason Norton

@James Ahern

We have nine separate lenders that me and my team work with on a daily basis. What’s your scenario that you need help Funding)?

@Devin Monroe

From what I see a property manager is very good even if you have one property and you keep building. My personal opinion is you manage the properties until it’s something that you can’t handle yet or it’s just getting out of hand and it’s not something you wanna do. Most property managers get 10% of what the rent is and if you can work that into the budget and you’re still receiving some cash flow I highly recommend it.

Now if you’re not wanting the added expense then you have to be very precise with your paperwork your spreadsheet has to be perfect and programmed correctly to wear at the end of the day you can see your final numbers. And if a property manager makes sense to have somebody else take care of the property so you don’t have that mental load on you then it would be great.

Always remember to add what the property manager percentage is going to be two-year debt service. If it any point you have a negative deal whether it be monthly cash flow or equity that you’re having in the property I do not recommend it.

I tell clients all the time your total expenses should be added up to a single debt service. Cash flow is profit, equity in the property is profit as long as you have somebody making every single monthly payment. When investing you have to take into consideration every single detail in every aspect of the loan or of the property itself. If either one of those get out of hand and your debt service gets a little out of whack then you’re in a situation to where you either started with a predatory loan or you’re in a predatory situation and you’re not gonna make the profit that you should as an investor. Or the profit that meets your portfolio percentages. People have their own formulas whatever fits for you fits for you.

@Jennifer Torino

It takes a bit to find a contractor that really knows what they’re doing. A lot of these guys think they’re a good contractor where they’re just uncle Louis working at 7-Eleven on the weekends and they do some construction during the week. What do you need to do is find somebody that can knows what they’re doing they know how to go get their prices bid the job properly and at the same time give you a true scope of work and also a schedule.

Because at that point if they can’t stick to their schedule in their scope of work it’s all on them because the lenders only going to be able to borrow exactly what the scope of work says if it cost any more it’s got to come out of their pocket.

@Brandon Fuhrman

I can. Go look at my profile.

@Brandon Fuhrman

I will do a deal if the client wants but at the end of the day I really do not instruct my clients to do a deal unless they have cash flow from the monthly rents and also equity at the time of closing in the property.

I will do what my clients need to have done but at the end of the day I also advise my clients on whether it is a positive or a negative deal. I don’t like putting my clients in a negative deal but if that’s what they really want I mean I can do the paperwork and still close in three weeks.

@Kishun Barker

I don’t recommend paying cash because you have no leverage. You’ve taken every dollar that you have and put into an asset that’s not going to get you a quality return. If you can minimize your down payment and have more leverage for your money that’s where you’re going to receive cash flow and you’re also going to receive equity. Because from what I understand investment properties are rented let them pay the property off let them pay the bill because if you have multiple properties you’re gonna be making the same amount of money anyways. But if you lock up a couple hundred thousand dollars into a property it’s in one property. My recommendation is using the cash you have to buy multiple properties. At that point you have multiple avenues of cash flow per month and you have multiple ways of growing equity with the same amount of money.

Scenario

Let’s say you have $250,000 cash. And you buy a four Plex really nice good neighborhood good quality property but you’re having to pay almost full retail for this property. So now you have four people that are renting and you’re making good money you know Alyssa you’re making three grand gross before taxes and insurance and all expenses.

 no you take that same $250,000 and you spread it out over into $50,000 down now you’re buying five properties so instead of having a portfolio of $250,000 you now have a portfolio that it’s equivalent to $1.25 million, it’s called leverage. You may have to manage more properties or hire a management team to take care of this but at the end of the day you make the same amount of money if not more and you have more retirement wealth.

Clients that I spoke to had mentioned numerous of times that investing is not that easy but it’s not that hard at the same time. You just need to make sure that your leveraging your money correctly to get the most out of the money you’re spending. Because at the end of the day you did not save that money to spend it frivolously on Investments. You’re spending that money to invest to get the proper return so you can take care of you and your family.



@Brandon Fuhrman

Advise people to go after both. If you’re looking for something that’s more of a retirement investment then I get to have any appreciation and then of course having someone else make your mortgage payment so it drives down what you have to pay. But even if your cash flow is low but your appreciation plus the amount of the properties worth later it makes it a win-win.

If you don’t have the ability to get both I personally classify that as a negative deal. And any lender that’s gonna put you in a situation to where you can’t get at least some cash flow off the property and at the same time have more money when you need cash 10 to 15 years down the road that’s predatory lending.. I personally will not allow this.

But at the end of the day you have to be comfortable with the investment. If an investment takes away from what you have presently and is not positive I would not recommend it.

@Olivier H.

I have a network of folks that can help you close in 21 days or less.

@Hobart King

pimortgages.com

@Olivier H.

What’s seriously keeping you from starting now?