All Forum Posts by: Lance Wakefield

@Tanner Gish

You have some pretty technical and specific questions in this post and your other post that are also very state specific. As far as promissory notes go I have used them a lot in business and they are very straight forward. Since you seem to be trying to avoid attorneys I would honestly just go pull one off google and change wording to fit your needs. As far as usury laws go some states have them and some don't usually they are 30% or so. Easy way around that is loan origination fees, or any other type of fee you so choose to add on there. That can help your interest rate to meet the usury laws but still get you the additional income you're looking to get from the investment. Example you loan $1000 and usury law is at 30% so you give it a 29.99% rate. However your want to make 50% on your money so you charge the fees and fianace those fees as well so that in the end of the deal you're getting your desired rate of return. 

GOOD LUCK

@John Hrvatin

I am no REO expert but my understanding is that many banks list their properties through agents. They do so in attempt to sell them outside of the auctions thus getting closer to a retail value for the property.

I would also recommend looking a little closer at the rental expenses. I personally feel you are assuming WAY too high of cashflow. If you simply use the 50% rule based on your $1200 a month of income that would give you NOI of $600 and then you have debt service. If you did a zero down payment loan and had a 30 year note at 4% your monthly payment would be $430. That leaves you with $170 a month not 5-600.

Just a thought. Perhaps you have a different method of calculating cash flow. 

I have a property in a similar situation where I live. I went and tracked down the address of the owner and they said that BOA foreclosed two years ago. Basically what I am hearing here is that it is not worth pursuing?

@Justin Douglas What type of properties do you currently hold in your portfolio? Are they local? Anything in particular you're looking for?

I personally feel like $2400 a month Is high. I do agree that it is an excellent appreciation play. So if the rents are low now I would assume they would raise over the next several years but property value appears as though it will raise greatly in the area.

@Donna Echols

Where would I look for properties to flip or buy for rentals? 

I would respond to your question with another question. What city do you live in? I would then take that area and find somewhere you can invest. I would personally pick somewhere as close to your house within 10-15 minutes. When you're starting out you will need to be there a lot as you get things figured out. If you're going to try flipping for your first deal I would partner with someone who has done it before. 

The more you learn about REI the more you'll see areas you will feel comfortable. Since I have a construction background I do flips for example. If you have a sales background wholesaling could be a great avenue for you.

I am interested 

Add me to your buyers list please 

THANKS

@Donna Echols

Welcome to BP! 

What area are you looking to flip in?

Have you already bought a property? 

If you have any questions or need any help let me know. 

@Michelle Sizer

Good Work buying that property! That takes a lot of courage. Which city in Collin County is it in? 

Also welcome to BP it looks like you're pretty new to the site.