All Forum Posts by: John Koster

Interesting.  His thought process seems eccentric to me, but whatever works!   I will remember this post in the future when making offers.

Welcome Ben!  There is a wealth of knowledge on this site.

With the current credit card rates as high as they are, I would look to private funding or conventional financing.   It is possible to get below 10% for private financing and 5% for conventional financing.   

Wow!  I'm impressed that a 15 year old is even having this thought process.  Shouldn't you be playing Fortnite 5 hours a day?  (Kidding.)  You're on the right path.  Keep saving and keep learning.  If I were you, I would look for a local investor to shadow and learn from.  Offer to help out part time and see how they work your market.  He or she may even be able to get you in the game sooner than you think.     

A classic example of how buying when others are fearful can pay off.  I would have been spooked by the lawsuit and never pulled the trigger.   Well done.

I use my name with my proper address and make my envelopes look like a letter from a friend.   The less business like the better.   Envelopes that don't look like junk mail definitely create curiosity.  

Hi Phil,

Address?  

- Search for the area you are interested in investing in on AirBNB as if you were looking for a place to stay and check out what the locals are charging.  AirDNA is a good resource as well.

- It does not make a difference whether or not existing tenants are in place.  If there is a tenant the bank will probably ask you to prove income and that the lease is current.   

- bankrate.com is a good place to look at current mortgage rates.  Investor loans are generally 0.5-1.0% higher than owner occupied loans.

- Tip - Some banks do not like to lend on AirBNB type properties.  I would buy a property that will cash flow as a regular rental to insure the bank approves the loan.

Good luck!

Well done.  

Hi @Patrick Ladouceur.   I would go with cash flow.  No matter where the investment is, most markets are now closer to a market top than a bottom.   If you buy a property that doesn't cash flow now and hope for appreciation, you might be setting yourself up for a disappointing return.  What happens if the market begins to depreciate in the next year or two?   You don't want to be stuck with a property that costs you money out of your pocket every month that is also losing value.

If you have a property that cash flows, you can ride out any market turn.