All Forum Posts by: Kyle Scholnick

I would agree this is not worth it. I am hesitant to call it a scam, because I am sure he gives plenty of good information and helps you get started, but having said that, he is just taking advantage of newbies. All the information you need to know can be found on this site, talking with others here, reading some books and blogs. He is just charging massive amounts to teach you the basics of real estate.

I inquired as well, went through interviews, was magically selected because I am just so darn special, and they wanted 9k dollars. They said once HIM AND I both got 250k in profits through real estate, I would get 9k refunded, and if they didn't get that profit, I would lose that money. I think there was a time limit too, we had to reach that goal within 2.5 years.

So not only am I paying 9k, they also steal half my profits when I do most of the work. Its not like they are a real partner doing half the work, they just might guide you and give you a few tips which you can find anywhere.

Def don't do it, its for newbie suckers that don't know any better. Just by being on this site you are smarter than that.

Seller would want high down payment if it is not an owner occupied home, you have high debt to income ratio, you are a credit risk to name a few.

Investing in a place you are not familiar with is risky, you really need boots on the ground, someone familiar with the area, best bet is to find a partner in the area. Network on the site.

Good luck!

Yes, the real estate market will crash in the next 2 years (in my opinion).

Real estate bubbles in 8 year cycles....2000, 2008...2016?

I would proceed with caution, I'm saving up massive amounts and when the market crashes next year, I am going nuts and buying up all the property :)

What about vacancy?

You didn't mention any repairs, capital expenses, maintenance...

How old is the roof? How old is the HVAC, if those are past their 75% life you might want to think about updating them or at least preparing for it

Whats the interest rate on the loan?

Keep it up, you are on the way!

Meghan,

Remember, that is a very common myth that you are "throwing away money on rent." Yes if you rent a 4k dollar a month house as opposed to buying a 100k dollar one, you will be wasting money, but if you are renting something comparable, you are certainly not throwing money away. Remember that owning a house is paying rent too. You pay the town rent in property tax for using their land, you pay interest on your mortgage...that's rent for using the loan...you pay insurance...that's rent for protecting your house and of course don't forget origination fees, closing fees, title insurance, higher utilities, etc.

I personally rent in my area and I get a steal. I put all my money towards investing.

There is my favorite myth that buying a house is building equity, but renting is throwing money away. I am getting utility out of paying rent and building equity in something else, just not my home. I'm using stocks, real estate etc. If you own a house, you are just building equity in the house which we all know houses only appreciate with the rate of inflation on average over the past century.

No shame in renting, trust me, buying a home you are not flipping or renting out is just a huge purchase. I'm an investor, I rent and put all my money towards building my net worth. Hope that helps!

Make sure you treat your wholesaling as a business. Don't get greedy or do silly things like find a property of the MLS and then try to charge a buyer 10k. Nobody will fall for that and it will give you a bad name. Charge a reasonable price for what you do, keep your word at all times, if you say you are going to do something do it. If you say you will close, make sure you do. There are so many terrible wholesalers, if you do those things and play the game right and try to build up a business the right way, you will easily stand out from the pack. Good luck!

I was wondering if there is some type of checklist anyone uses when they are negotiating with a distressed seller. Say you find a house through direct mail or driving for dollars and the seller is interested. Now I show up to speak with them and try to get the price down...How do you do that? What types of topics do you bring up? The roof? The benefits of not dealing with a realtor, etc? How do you phrase these? What types of things do you say?

Does anyone have any general scripts they use with these sellers to get them to lower their price?

Thanks!

Another option is to continue renting for yourself and just buy the rental property as an investment which I feel is way more important. The purchase of the house for yourself is no investment and therefore takes a backseat in my opinion. This is a John Schaub type of approach that I like.

Another option is to pay as much cash as possible in either the rental or your own home to get as much equity as possible, and then take out a HELOC to buy the other property.

I would be very careful about the HOA fees if they are in the rental property... a lot of those HOA boards are just guys on power trips that may have a lot of restrictions or add new fees suddenly that will kill your cash flow.

Good luck!

Hi Everyone,

Its been great speaking with many of you already, but just wanted to formally introduce myself and see who else is in the area that is active on the forums. If anyone wants to chat about finding and analyzing deals, I'm game anytime. Would love to swap information and work with some of you guys in this market. I think if we all team up we can make a lot happen around here. Look forward to speaking with everyone!