All Forum Posts by: Jason S.

It is possible and is something that happens over time. In the end though you still need to have a competitive offer.

For anyone to say otherwise would be claiming their agents are acting unethically, or potentially unethically, toward their seller.

Kiran,

In the first page of the thread he said:

With the proper nest egg of cash, finding deals, and doing that many flips is not a problem, the return per flip is not extraordinary.

Why leverage any of the properties and simply not go for f & c ownership given my scenario above? Is it because you like the low cost of funds in today's environment? With regard to taxes, are not most of you that have a large nest egg etc after years and years of success doing your fix/flips within a retirement account? I know my excuse, but why do I not see this being done very often?

Greg - if you are netting $90K a month. Then you could easily buy 2 homes per month cash that rent for, say, $800 month. That's $1,600/month additional each month, over 60 months that would be $96,000 gross cash flow per month.

Now of course there are many other factors, like other expenses, vacancies, etc, but your target is really not far off given your current monthly profit.

Of course I do not know your monthly lifestyle either so that may trim things down a bit if you have extreme monthly bills and a high end lifestyle.

It depends on my overall financial health. Is this my only money and I have no other assets or is this money over and above? You can never answer such a question without knowing the big picture.

I was talking to a guy that had a home in disrepair the other day and he literally did not understand how he was responsible for the damage to his home.

It is like he expected walls to self clean, leaks to self repair, the pool to self clean, the yard to self garden. It was amazing how little he knew about home maintenance. He kept saying, "It was real nice when I bought it".

I understand not having money and how that can affect maintenance etc - but some people take it to the extreme.

Though this home could be fixed up super easy, just take care of that mold problem properly which is no big deal if you know what you are doing.

Have Fun!

Many banks will not report to credit for this type of loan. There are uses for it, such as mitigated CD term break penalties...

the do hard money [dot] com guys say they offer no money HML's.

High fees though. Let us now if you use them , it would be interesting.

I have read that you can file a QWR.

QWR is a Qualified Written Request and per Respa regulations the lender MUST DISCLOSE to the homeowner who the investor is within 60 days of the request.

Do not know if it is true or not - maybe someone more experienced can chime in.

I do not recommend this, though I have seen it done.

1. Find a beater that is not livable / barely livable.
2. Move in <-- I know not the smartest move.
3. Contact owner and offer to fix it for free rent - they buy materials.
4. Save rent money for down on next deal that is yours.

I have built homes in some rough areas. This is a standard maneuver for characters that live in these areas. I say "characters" because, well, if you have spent much time in these types of areas you know what I am talking about.

You could of course offer to fix it without moving in first, which is more advisable, but not always done, for obvious leverage reasons.

Anyhow, you are taking a situation where the owner has an unusable asset and making it usuable. You then move out when it is fixed and the landlord has gained and you have had free rent along with saving the 12% HML interest you were planning to pay. Believe it or not I have seen this type of situation develop into a good relationship with the owner where he moves you to another house that needs work and suddenly you become "his guy" for better or worse.

Anyhow it does happen.

Just for the record, I do not endorse this, but I have seen it work out in more than one instance.