All Forum Posts by: Julian Buick

@Matt Cramer

 @Bill Hinshaw

 @Charlie Claxton

Great info. Bill's post clears up the question I had about realtor fees and holding costs.

I was more thinking about after the houses have been fixed and resold. Once all the dust has settled and the profit is counted up, is the profit still 20% of sale price? or is it closer to 15 or 10%?

I was just wondering if surprises during rehab tend to result in cost overruns that eat into the profit. So, the 20% profit, if fully financed, usually turns into 15%. I suppose if that happened on a regular basis then you would need to get better at estimating your repair costs.

The 70% rule of thumb seems like a great way of determining how much to purchase a house for. 

How many people that use the 70% rule actually achieve the 70% rule once the rehab has been done and the house has sold? In other words, how many people actually sell the house for 100/70 times the (purchase price + expenses).

Should the expenses include realtors fees and holding costs?

@Phillip Richardson you can get a line of credit against your primary residence assuming you have one and assuming you have equity in it. You could save up the income you get from the three notes and once you have a big enough chunk you could use it for another investment. Or, you could look to sell the notes on the open market. You won't be able to get full price for them but once they are seasoned for a year you should be able to sell them for about 85% of the  Unpaid balance. If they have a decent interest rate, holding them for the cash flow is the way to go. Note buyers will buy notes like that as a strategy. 

@Phillip Richardson the condos are the collateral. Once you sell the condos you no longer have collateral, you have promissory notes. To make a loan from a bank you have to be able to back it with collateral. You can't back a loan (a new note) with another note. If you default on the new loan what would the bank take back from you? The original note? They want to be able to take back a hard asset. Much like if the people you sell the condos to stop paying you can take the condos back. 

@Faun K.

I had the same question when I read Rich Dad, that part didn't quite add up.

@Richard C.

 I "followed" this thread because I thought I could get some great resources on what my next read would be. It started out with a few people giving some references to books that sounded interesting, but seemed to take a wrong turn somewhere. For some reason people seemed to think you were attacking Kiyosaki etc. The way I read it was, you have read Rich Dad, got all the motivation from it that you needed and now are in search of something with a bit of substance that you can actually use in your investing career. I don't know why everyone piled on top of you saying that what you need is more motivation. I too would like to hear people's opinions on books they have read about real estate investing that actually have some substance, something tangible that can actually be used in the real world. If you are in the middle of analyzing a deal to decide whether to go ahead with it or not, would you look up your library of books and pull out Rich Dad Poor Dad to find the answer you're looking for? I would doubt it. Motivation books are fine to get you motivated but technical books are required for education.

I'd like to hear how @Ben Leybovich

 would analyze probabilities and discount your numbers to compare apples to apples, now that we know a bit more of the details.

Has anyone bought the complete package from The paper source online? It's supposedly a great resource for learning about notes. They are asking $200. Was wondering if it is worth it.

Has anyone bought the complete package from The paper source online? They are asking $200. Was wondering if it is worth it.

Just read an article about the Supreme Court rejecting 2nd lien stripping in Chapter 7 bankruptcies. Was wondering how that will affect the resale value on non performing 2nds.

http://www.housingwire.com/articles/34051-supreme-...

@Andy Pillinger

 Check it out