All Forum Posts by: Jon Schoeller

That is tricky. I am sure you could but the problem is that the HM people can't take the house if you default as you don't own it. It would essentially be an unsecured loan so expect to pay a little more with more strict terms. Where there is a will there is way though. Good luck! 

Hello Une! So it's basically 18% annualized which is not bad at all. Especially since he is going to educate you along the way. I would do exactly what you are doing. Do this first one with him. Make sure you get a promissory note! Then you can invest more and more as you get more comfortable. I am not sure how or if you can convince him of 50% unless you start bringing some of the work to the table. You have to show him you are worth 50% first. Good luck! 

Okay I have an area like that near me. So now lets say I own most of if not all of the block. Now what? 

This question is near impossible to answer without knowing your location. There are so many different strategies he can use but it depends on what works in his area and what opportunities he has access to. Also his income matters. 

He could loan that money as a private lender and get 8-12% return. 

He could put a down payment on a large multi unit and finance the rest 

He could put multiple down payments on multiple units 

etc. 

He is in a great position to get a nice head start. He just needs to be patient and smart and be careful who he trust. I know as as I was in almost the the same situation. Tell him I said good luck! 

Okay I am interested. Tell me more about this strategy. 

I always recommend that newbies either get started with wholesaling or with an experience partner. Wholesaling allows you to get in the game without a ton of capital and know how. The experienced partner, while they may take more of the pie, can allow you to invest with essentially guard rails. Or just do it the old fashioned way and go for it on your own and if you lose money chalk it up as an education expense and move on. Good luck! 

The market will determine that. What are other bedrooms in your area renting for? Most people will pay a little more not to have to deal with the dorm rooms and sharing a bathroom with 20 other people. Take good photos and put a nice description. If you get calls you are priced right or maybe too low. If you don't get calls, lower the price. Good luck! 

As someone who buys a ton of auction houses, this is not something I would suggest for an inexperience investor. Especially not on your first one. Unless you are getting a house that appears to be in great condition in a great neighborhood for a no brainer price. Meaning you have accounted for every repair/expense possible and then some and you can STILL make money. This is something you need to develop an eye for. Now what you could do is hire a contractor to go to the auction with you as a consultant. Let him/her advise you on repairs and cost. I am sure one of them would do it for 50/hr. Or bring a friend or family member that knows for free. Hope this helps. Good luck! 

Have you thought about getting new credit cards with 0% transfer fee and 0% APR for the first 12 to 18 months? Do that and live on the rice and bean budget until that 17k is paid off. Refinancing at a higher interest rate on that large of a loan is going to cost you much more than 17k over a 30 year mortgage.

Other option would be to just take a small equity loan on either house to pay off of the high interest credit cards immediately and then pay of that small equity loan as fast as possible at the lower interest rate. Hope that helps. Good luck! 

In our market the difference between 1 and 2 stories is significant (people love ranchers) while the difference between 2 and 3 stories is negligible. I would imagine this to be the same almost everywhere. Hope that helps. Good luck!