All Forum Posts by: Kyle Gregory

hey r2d246.... You know for sure that the interest rates will be getting better in 5 years? There is an old saying "assumption is the mother of all F-ups"

another saying is "plan for the worst and hope for the best" if you use mikes formulas you are doing just that.. So if you have a positive cash flow in the worst case scenario, you will have even a bigger cash flow in the best case scenario.....

there are several options here and i can speak from experience also, as i am still in the learning process with buying my first 2 family..... 1 you can get a conventional type loan, 2 you can get a commercial loan 3 you can go to a hard money lender (HML) 4 you can try some creative financing with the owner right now.... I am sure there will be others chiming in on this also..

keep in mind now that if you plan on flipping the house a HML will charge extremely high interest rates, but those loans are generally less than a year in length. They will aslo charge quite a few fees, points etc... And being a first time borrower you will probably get raped...

Depending on how much equity you have in your house, or your partners, a commercial loan might be a way to go.... You secure the property with your houses. Interest rates will be a few points higher but less hassle. And depending on the cost of property you might want to check with a local banker as I have found those are the ones that will lend less than 100k.

or yet another option is to pay cash for it... good luck on that one though :D

this sounds like the reason the mortgage business is in the trouble that it is in..... it looks like they want you for your credit score... I would be leary of identy theft myself

as my brother told me... "it is all about the cash flow" ... what is the cash flow on the property? What are your plans i.e resell it or keep it?

it might be that the property is currently in foreclosure process.

even the best of friends can screw you over for the right price... if he is a good friend just give him the basics and negotioate from there

generally you wont be able to rent out the house.. Why do you want to get locked into something that you MUST keep for 10yrs? What happens if a good offer from someone comes your way 1month after you purchase this property? you are screwed

there is a reason that housing in the "hood" is cheap. Go around any of those areas and look for single family homes and you will find the reason it is so cheap is because the people dont care about their own property... just think what they would do if it wasnt their property? Also YOU might not mind forking out an extra $100, but someone living paycheck to paycheck might not like forking out that extra money... But you will make money doing it this way... but you will also have lots of headaches with repairs, non-payment of rent, evictions etc....

if it looks like a duck, walks like a duck and talks like a duck........

ITS A DUCK

as it was explained to me.. being a slum lord will give you greater profit, but it will also give you greater headaches. The tenants are less reliable for rent, more likely to move, more likely to wreck the property, more likely to not care about your property.... So you will need to deceide if you want that headache, or to make less profit but less headaches.

also remember "you can take the girl out of the country, but you cant take the country out of the girl"