All Forum Posts by: Benjamin Haberman

Sue Kelly that sounds great. Only thing is I'm only 6 years into mortgage. Maybe by year 8 I will have enough equity to refi and I can then create some cash flow. Technically, this property isn't costing me anything right now since I haven't dealt with any vacancy or repairs yet. I know eventually something will go though. I like your thought process of a retirement account though. Especially since someone else is paying for it :)

Nancy Brook That's actually the way I've been thinking. I might ask my current tenant to see if she's interested in buying. I'm also going to look into this lease to own option as well.

Bob Beeler Hey Bob. What do you mean when you say $5k option? Do you have any more info on lease purchases? Anywhere I can get a sample of one? I appreciate the help!

Brie Schmidt I was thinking that too. Thanks so much for the input

Hello, I purchased my first primary home in May of 2009. Just bought a new primary in April 2014 and kept our first as a rental property. I'm just trying to figure out whether or not it's worth keeping this house As a rental. I paid $170 and it barely has appreciated since we bought it. I might be able to sell it today for around $175. Taxes, insurance, principal/interest-$1230 I have a great tenant paying $1300 If you factor in repairs and vacancy- I'm losing money. :( I owe $150 and that's not enough to bring 20% equity for a refi. The only positive to this property is I went in front of zoning 5 years ago to get the property approved for a duplex. But to put up a mirror image of house attached I would be spending $100 k and needing to out of pocket 25% which would make it not even worth it in regards to cash on cash return. I'm just starting to question my self if I should be keeping this rental property around or get rid of it and continue acquiring properties that are cash flowing more (a lot more) Any opinions/thoughts would be much appreciated. If I need to sell it, I want to do it now as opposed to later. Thanks!

Hello BP community, I am currently in a position where I will be partnering up with a couple contractors to start developing mid grade modulars with a price point of roughly $300 k list price. We found a street we want to start our venture on. Offer has been accepted already way below asking price, for one of the partners to start developing their own home on one of the lots. There are roughly 4-6 more lots we would like to develop on. Talking with a friend who has a large amount of real estate knowledge in larger development transactions, He mentioned I would be foolish not to pursue a rolling lot option. I brought up my concern about the market suddenly catching wind of this hidden gem and buying up the remainder of the lots or the seller raising his prices. Few questions: Does anyone out there have a good recommendation for some consulting work from an experienced investor with these type of contracts? Does anyone know the average price paid for consideration? I understand generally the option is usually 90-110% of asking price just wondering what is paid during the option period. Is there an average time frame? If one house takes 4-5months to develop , how long should we give ourselves the option to buy? I really appreciate any help you guys could give me. Thank you!

Aaron. That makes total sense. I think I am definitely going to go this route.

Thanks for info Winston. I spoke with line of credit provider and he said there were zero points/acquisition costs. When exactly do you deal with closing costs on a line of credit? Other then the actual closing of the sale

Hello BP,

Just found out I have access to a $50,000 line of credit at 7% interest. I'm pretty sure that is a pretty solid rate. If you know of anyone else with better rates, please let me know.

I've been thinking about something lately. For someone with out the cash on hand to be able to put 20% down on rental properties, I've been thinking lately to do some flipping/developing first with the line of credit to build that cash to put down on these  rental properties in the future. I own two now, but one was my first primary and the other was owner financing. I'm pretty sure i'm correct in saying that using a line of credit for a buy/hold property doesnt really make too much sense unless the profit far exceeds the interest payment on the loan and you can pay down the principal fast. 

So im going to write a plan this week to do some developing with cheap lots/modular homes to build the "cash on hand".

Thoughts?

As long as the property manager is quality, I think its worth a shot. I have a friend that has run out of options at his property around University of Deleware. No reliable/quality property managers in the area. Hearing his experience has actually made me stay local. Im a business owner my self and consistently see how many fly by nighter contractors there are in the area.