All Forum Posts by: Jon Behlke

Glad to have another Western PA investor here!

@Richard Rinehart

I have read his book, as it was a free Kindle download, which is about what it is worth.  That's not meant to be insulting to the author in any way, it just doesn't go very deep into how he established his wholesaling and bird-dogging leads nor does it touch on the process of wholesaling or bird-dogging.

I did find his analysis of every offer given him a great way to quickly learn from examples how to evaluate a deal.

It's a decent read/skim, but not worth more than a couple bucks or hours of your time.

@Kevin Izquierdo

You have to remember that the people you are talking to are also the people most likely to buy stocks at the top of the market (because they were paralyzed with fear while the market was rising) and sell at the bottom of the market, (for fear of losing any more money.)

Some people will never get out of their 9-5 mentality.  Rather than put their destiny in their own hands, they'd rather complain about the people whose hands they put their destiny in.  

I love my father, and he's a very intelligent man who has done well for himself.  However, he doesn't have an entreprenuerial bone in his body.  Even when I tell him the numbers (we're both accountants, we live for numbers) he still fears letting go of the security he's worked hard to establish for himself.

Long story way shorter: Some are doers, some aren't.  Don't let the one group talk you out of who you are.

@Brandon W.

The 70% rule is a good baseline if you live in an average area.  Is it good for you?  I don't know your market.  If you try to use it in California, you probably won't ever get started.  If you use it here in Pittsburgh, you'll be overpaying.  Matter of fact, I live between Pittsburgh and Morgantown, WV.  The 70% rule becomes the 60% rule in Pittsburgh and the 80% rule in Morgantown, in my analysis.

Welcome, Jeremy!  Western PA is a great place for real estate!

You have a copy of her original signed pre move in inspection checklist.  Take pictures of the material defects upon her moving out.  In the unlikely event she takes you to court, (cost her more in attorneys than the lousy $600), you'll be covered, most likely. 

Disclaimer:  I am not now, nor have I ever been, nor will I ever be, an attorney of any type.  Heed my advice accordingly.

There's no profit there for the end buyer, IMO. 

From a flip perspective: 70% of $140k (low end ARV) = $98,000. Even if there are ZERO rehab costs, seller still owes too much.

Landlord perspective: Using 1% rule, $1369/mo rent equals $136,900 ARV, not too far off. Once you factor in closing costs, there's not a whole lot of room for you to make much of a profit.

A bit of a different perspective here. 

Dallas market is boiling hot, probably a bad time to enter.

Massachusetts has both a higher income tax rate and the median property tax in MA is nearly $3,000 a year higher than in South Carolina.

Factor in the lower cost of entry in South Carolina, and I think it becomes an easier decision.

One Up On Wall Street by Peter Lynch is a must read, particularly for the teenage investor.  It explains why he will most likely have more success than the big firms because A) he is in tune with the target demographic of a lot of businesses, and B) he doesn't have to worry about regulation violations when he invests $1,500 in one or two companies, unlike the mutuals, who invest millions at a time.

I have read the book a dozen times over the years.

Be aware of how difficult it is to finance a mobile home, particularly used homes, as they are titled, not deeded.  You need to make sure that your buyer can pay cash, as financing will sink more deals than you'll ever make.