All Forum Posts by: Kyle Scofield

Recently secured my first rental property investment by using a lease option strategy to house hack while still a junior in college in South Dakota. I'll be living for free and not have to share in other micellaneous expenses. All the cash I save now is for maintenance, improvements, and just being able to build a nest egg.

And the craziest part... I knew NOTHING about real estate investing. Only started to learn about real estate 8 months ago. I started with the Ultimate Beginner's Guide! Then continued to read every book written by Brandon, listened to all episodes of the podcast, and just dove into this amazing website called BiggerPockets. Thank you so much @Brandon Turner and @Joshua Dorkin ... This site has done wonders for my life. All it takes is a little time and dedication, small efforts day in and day out. 

You don't need a lot of money to get into real estate investing. You just need to be willing to work for it and it took me some time to realize it was possible for me. However, the more I learned the more excited I got. I couldn't wait. At the end of EVERY PODCAST, the question "what stops people from succeeding in real estate" always has the same answer! JUST DO IT. So I just decided to dive into the world of Real Estate Investing. 

Thanks to so many more people besides Brandon and Josh for helping me along the way. I've posted multiple times, read blog posts, as well as direct messaged other members. The site is so helpful. Don't know where I would be today without the site.

Can't wait to see what the future holds, cheers!

I bought with equity in mind. Using the last few months' experience in looking at comps, the property is worth about $65k which gives me a $20k when I can purchase it. 

The numbers for future rental: (using bigger pockets calculator)

Purchase price - $45k

Lease option fee - $3k

Down payment @ 20% w/ closing costs = $11,200

Future rent when graduated = $925

Principle & Insurance = $170

Property taxes per month = $108

Insurance = $85

Flood Insurance = $150

Vacancy @ 3% = $27.75

Repairs @ 15% = $138.75

Cap Ex @ 15% = $138.75

No property management as I plan to unload the property before I scale up. 

Monthly Cash Flow = $106

Cash on Cash ROI = 11.48%

I have a non-real estate related questions. Looking into a 401(k) and was just curious as to WHEN mutual fund managers get paid? Do they charge you every year or do you just pay one lump sum at the end when you withdraw?

Thanks in advance!

Just like the question says, Should you tell the Bank you are doing a Seller Financed Deal? I know the due on sale clause is the biggest detriment of seller financed deals so would it help to have the bank know what is going on beforehand or better to keep it quiet?

Can't wait to read it! 

@Jake Peterson @Brandon Turner has a couple good recommendations for deciding if you're in a good location in his book "The book on rental property investing"... he gives a few different tools to search with

• Crime stats - www.crimereports.com
• Schools - www.greatschools.org
• jobs versus unemployment - he said he uses www.city-data.com
• drug use in the area 
• the overall look of the neighborhood done by just driving around

Hi all, what do you do to get your property to stand out? Especially in a bigger town where people have plenty of options and listings to scroll through? 

Thanks BP!

@Jeremy Pace What are the ways you can finance a deal if someone still has a mortgage? I didn't think that was possible because of the  Due on Sale clause?

Thank you by the way, this is giving me a path to go towards and making me much more confident in approaching these types of deals. 

@Matt Jordan Depends on the terms: length of years, down payment, etc.. The sample letters that biggerpockets has in it's files usually look something like this:

Length: 10-15 years, anything more is less common

Interest Rates: 5-8% from what I've seen

Down Payment: can be anywhere to 0% down and up. Depends what you can negotiate

@Jeremy Pace So do you approach them about owner financing before you know if they have a mortgage on the house? 

Or do you do your due diligence first and go look at the county records beforehand?

Thank you!!

Just a few questions about offering someone seller financing:

• When you see the ad, what's the first, second and third thing you do?
• Do you email/call the seller right away and ask if they'd be willing to do seller financing right out of the gate?
• Maybe email them right away laying out the ins and outs of your deal and how you could earn them more return on their money?
• Should I just send an email essentially saying "Hey I'm interested in buying your house through seller financing, I can offer a good down payment and excellent interest rate.....?" As I said, I'm a little lost where to start with this

I'm just a little lost what to do... I've got some properties that are FSBO but I'm not entirely sure HOW to approach the seller..

What has everyone found works best for them? 

Thanks in advance BP!