All Forum Posts by: Jim Pellerin

@Michael K Gallagher The main reason you would want to assume a mortgage is that the rates and terms are better than what you can get. Another reason is that there are penalties that the current owner would have to pay for early termination and they would be trying to pass those fees off to you. It's part of the negotiation with respect to price and terms.

So that's about a 5% return on your $200k. If you take out $100k your return will increase because ur currently unleveraged. 

I'm assuming $1200 is your gross rent. What's ur NOI?

 My favorite by far is DealCheck.io and they have a free option as well as a low fee entry level option that gives you everything you nee. And you get fantastic reports. 

 My experience is that it's not worth the hassle. Find your clients a better place. 

it could be either. Did the seller specify that the buyer had to pay ALL closing costs? If not, it's normal for closing costs to be split. But sometimes the buyer has to pay to get the deal done. 

You need a joint venture agreement. In this document, you need to specify who's doing what and who's getting what. There should be some sample real estate joint venture agreements out there. Just google for "real estate investing joint venture agreement"

I'm assuming he's providing all the money and you are providing all the services (property management, etc.).

How much equity will you each own? Will you be on title? Who get's the positive cash flow from rents? What if there is a negative cash flow due to reduced rent or vacancy? 

And anything else you want to spell out.

@John Guy You don't need money to invest in real estate. You need to be resourceful and also use other people's money. Don't get hung up on "owning real estate" or "how many doors you have". Here are some short-term income earning strategies.

1. Wholesaling - My #1 choice for you. Save the money for bigger opportunities.

2. Fix and flips - Be a money partner - use the money you made from wholesaling

3. Lease Options - I did over 100 of these. They don't require any of your own money. Focus on disgruntled landlords.

4. Subject to's - I did a few of these. Harder to get because most people want to cash out to buy their next place.

5. Seller financing - Vendor take back where the owner agrees to sell you title and hold back a mortgage for all or part. I did a few of these.

6. Money Partners - Raise capital from friends, family and co-workers. I did a lot of these starting out becasue people know like and trust you.   

Once you get this under control, invest in private equity, syndications, joint ventures, etc to build wealth. 

 I tried a lot. My favorite was Buildium. 

If you understand this, you are no longer a newbie. lol. 

I'm a dispo W/S. Can I use a HML to acquire a SFH I found on this FSO site at 100% LTV with an ARV of $400K which is based on a CMA I had done? The MAO is $250K. Alternatively, might be able to get a VTB. The CAP rate would be 5.5% and the COC return is 21% and an IRR of 35%. It's an REO deal.