All Forum Posts by: Joseph Beilke

I have notice year over year that rent rate drop between November and April in Flagler County/ Palm Coast Florida.  I then see an uptick again when school is out.  If that does not happen this summer then I would agree demand over all has dropped.  Most people do not want to move their kids during the school year so that lowers the demand for units. Time will tell if the trend is seasonal again or more permanent.

Stopped by the build today a to show another investor and while I was there snapped a few pictures.  Inside has been painted, flooring is going in and the stucco is complete and currently painting outside. All Sherwin Williams colors, the exterior is Ocean Fog, the inside, like all our rentals is SeaSalt in SuperPaint Satin. Even the properties we manage are the same interior color to save time, confusion and money.  

Absolutely do not!  Big Red flag is an understatement,  the seller is stalling to either keep your form backing out or losing you Binder.  Do not play games with the seller.  Send a Cancellation of contract over now and a release of escrow.  I'm not sure how the contract in your state is written but say as little as possible if you have to give a reason.  You do not want he seller to try a drag you along with excuses. I'm pretty confident you are walking into a Sh*t Sandwich.

 Robert Kiyosaki said that he hung a picture of a Porsche on his wall and that was a visual reminder of his original goal. To have passive income pay for that dream.  I too have a canvas picture of a Porsche on my office wall next to a Flag that was flown over the US Capital and at Combat outpost Khan Neshin Castle in Helmand Province, Afghanistan.  A close friend on mine did it in remembrance of my grandfather who was a 9/11 victim in the Pentagon.  

Robert Kiyosaki and my Grandfather both spoke of having goals in life and some times the goal can be gift to your self for working hard and rewarding yourself.   I am closer with ever rent payment to getting that Porsche.  My Hobby will be taking that car to shows, meets, and the track.  Real estate investing "job" not "hobby" will get me there.    

Keep reading books, listen too many different podcast and get opinions from many different view points.  Learn the craft and master it and then reward yourself.

HELCO right now are not a smart move because the rate is variable, and if the FED continues to increase rate you might end up not being able to make the payments or gain any traction.    I would consider the a fix rate mortgage on your current house, enough to get you 25 -30% down on your next, plus some cash to buy down the next house rate.  

@Kyle Thomas

Negotiation of a real estate transaction is only a small part of the "DEAL". Please do not take this the wrong way, but most of us on here already have goals in mind, the task at hand is finding the right property or properties to help reach that goal.  Your post says nothing about what your goals are expected that wholesaling properties interest you.  This is not a hobby, it's a journey to financial freedom.  

It's time to read some books, listen to pod cast, figure out a strategy that brings you closer to your goal and then go out a practice what you have learned.  Then come back and ask us about properties you have identified and if you missing something or have you found a "DEAL"

@Katie B.

I agree with @Theresa Harris that some states require you disclose information on a property that had anything to do with death or a crime.  This could in the long run might have lasting effects for resale or even your ability to improve.  If you find out that this is not the case for this property and your long term goal is to completely reshape the property to the point where there is no visual remembrance of how it once was, I say move forward with the purchase.  

Think about it as a car deal.  When you go into a dealership they never talk price, it's always payment.  Apply the same mindset here, your Cash Flow is based on how much you take in each month verse what you pay out.  As long as the number work for you and your personal goals to increase your assets, who cares what you paid for the property as long as you make money each month.  

NOW....  if you plan is you get out of the property over a shorty number of years then it will be important to pay down your principal to a point that if prices drop substantially you are not upside down when you need to sell.

Work the numbers both ways and exercise your plan over a few different scenarios and see which one work best for you to grow you wealth.  

Good luck!

As for your 7% statement, I disagree.  I think mortgage rates will make it over 8.5 possibly even reach 10.  This is bad very news for Realtors, sellers, buyers, lenders, and everyone that does any type of business in real estate.   The Fed has said and the news is quietly even if reporting,  that other than more rate hikes or larger and more banks failing, the last resort for inflation is 10% unemployment which has to happen organically with some help from the Government with more regulation and taxes. Business will down size and lay people off to cover the cost of doing business.  That scenario of more banks failing and unemployment with tank prices due to foreclosures inventory increasing. 

So what you're looking for now is a seller that has a turn key property and has to sell for what ever reason.  This seller is willing to drop the price to get it sold and the longer it sits the more likely it will have a substantial drop in price.  Now this is key, you need to be looking in a market that few other investors are looking at.  Cash heavy and high income earning investors are looking for assets that they can depreciate to off set there income tax.  This is where you have to swift with your numbers and evaluations on a property.  Be ready to make fast offers and have your ducks in a row so another investor doesn't come in a pick it up first.  

Lastly, Fast tenant shouldn't be your goal.  A good well qualified tenant is what you want, so screen them closely and equally and you will find a good one fairly quickly.

Good luck with your hunt!
 

@Mike Gordon

Mike sorry I didn't reply earlier.  Funding is 100% Cash at this time.