All Forum Posts by: Jerimy Justice

I agree on all the previous posts. Everything on the invoice except for the trees look pretty aligned with the going costs but my question would be did they use an arborist for the trees? Those guys are crazy expensive but you dont have to worry about them killing the trees. They also brought in huge machinery to trim the trees to an umbrella shape. Last year I contracted work out to one and I was charged $1,500. In your contract it should not give them the permission to go above the original quote without speaking with you first. Sorry this happened to you. I'd definitely try to get them to negotiate the price with you and dumb them immediately after! You'll be paying this with your cash flow for a year. Best of luck to you!

Yo Louis! I agree that people that are selling turn key properties are "car salesman" they are making more than $10,000. I guarantee it..most of these guys are trying to take advantage of new people in the investment arena. I know several of these guys who buy the house and just add paint/new carpet and sell to investors. Just because they are turn key doesnt mean you arent going to have maintenance. I'd actually factor in my numbers for 10% maintenance just to make sure that you are in a good place if their is something major that is going to need to be repaired. I also tend to always factor my numbers with 10% vacancies. I know everyone is a little different but at $120,000 you should be getting a minimum of $1200 for rent. This is just my opinion. Also, be careful with your tax calculations. I purchased two properties last year and the taxes almost doubled this year. Good luck my friend!

I think that the smart move would be to do a lease option on this house. At least you can cash flow and have a stable person in the house. I agree that you are probably going to lose your tail if you sell it with houses still being built. But there is always the chance that someone wants to move ASAP and doesnt want to wait for a new build. But time isnt on your side because of all the expenses that you are incurring monthly. While $1,700 a month might not seem to be alot for us. It doesnt look like this area can support that high of rent. Even if you did find someone to rent it in this area you'll find that your property will be a stepping stone before they buy their own house. In this case you can have a revolving door of new tenants every year with expenses and vacancies in between. Best of luck!

I'm in agreement with everyone on this. If you buy above the ARV is he winning or are you? He definitely is winning. You always makes your money when you are buying and you need equity. When I buy I try to be 15%-30% below the ARV. I understand that he doesnt want all that money in one year because he doesnt want to pay a ton of taxes but I do feel like at 10% you are getting hosed for sure. I really feel like you are doing the right thing's by looking for guidance and analyzing deals. Practice makes perfect and patience is the key to finding the right deal. I believe in you buddy! GOOD LUCK!

I think from a strategy aspect I'd have to say that you should never buy for appreciation because who knows what the future holds. If its a good deal in Brooklyn then go for it. Me personally I would go after the return NOW. I also think that you need to decide if you plan on buying and holding the SFH's for a long period of time. If you can buy the SFH's in PA for 30% below the actual value you'll have equity from the get go. I'd go with the SFH's in that case. If you can get good working class tenants they will probably be there a long time. Good luck my friend!

I really think this is a wonderful story and you should be proud of yourself. It's funny how if you just simply talk with people sometimes how you can find deals. That's the reason why so many investors hit the pavement. Bravo my friend!

Yeah, This tactic is exactly what I did when I moved to Tampa to go to USF. It really works fantastic and is now something that is paid off. Woooohooooooooo!!

I feel like 401k's are a sham for the most part. I've always invested 10% of my income 60/40 in the traditional IRA and the Roth. My company matches up to 6%. I was looking through our vesting and fee's and I couldn't believe how much I was paying just to have the 401k. WHAT A JOKE! I now currently only do the 6% because its matched. Everything else I am now using to continue my journey to financial freedom through Real Estate.

I had a situation similar to this where I was going to evict my renter and they were able to put some of the money together and I let the renter give me a promissory note that they would pay me the back rent in his next two paychecks. Guess what he didn't give me a dime and I had to give the notice of eviction again. Just evict them it will be a lot less stress in the long run.

I've seen several friends successful with both strategies. If people are motivated I don't really think it matters much. Give it a try and see how it goes! I think that they need to be positioned in the right area that you are trying to buy in. Most of the time these are put at 4 way stops. Also, make sure you aren't going to be receiving any fines in your area for putting them out. Best of luck!