All Forum Posts by: Wade Alderson

@Bryan S. I know that FHA is for people living in the property. But in the show Glen was not living in the house before he flipped it. Do you think he got a FHA loan and was able to do that because there are no FHA police? Also doesn't FHA make you pay a kind of fine for paying off the loan before 12 months? (What I do not know and wish to learn there are whole books about I just can't find them)

I was catching up on some old shows on the DVR and on Discovery Channel and the star of the show Undercover Billionaire, Glenn Stearns said that most people buying real estate think you have to put down 20 to 30% down but that's not true and on the show he only put down 10% and got another $10,000 to fix the place up wrapped into the loan. 

I listen to a lot of podcast about real estate and I keep hearing host and guest who say they only put down 5% or less as a down payment. 

As someone who wants to do invest in cash flowing real estate I have always thought it was true that as investors we need 30% for the down payment, but I never seam to have my act together to save up the money to get started before I have some emergency that needs my money (I manifest my own bad luck). But a 10% down payment I can come up with in short order and keep doing as long as it's really doable. 

What am I missing...?

Please educate me on my missed information so I can finnally get stated on my path to wealth. 

@Harrison Moseby I have not started my real estate empire yet. My wonderful Step Mother beat cancer but my younger sister was in a car accident that crushed one of her ankles and broke her tail bone. I am her at home care giver so until things change it would be very rude of me to pack up and just leave her. On the upside since my sister needs someone here most of the time I have come up with some very creative money making opritunites (and learned that 90% of the Digital Marketing Guru's are scam artist. Case in point... anyone who says you can be making $10K a month in 90 Days but never tells you in training that you have to spend $5K in marketing to make that happen, tends to be one of those jerks who makes more money selling the training than by actually doing what they teach) and the best part is everything I am learing can be used for my real estate when I need to market it. I am so golden I should sparkel in the sun. 

@Alanna Schroeder thanks for the heads up.

I am looking to start investing in short term rentals with extended stay renters. The thing is I don't need to buy more expensive properties for oil field migrant workers so I am going to focus on Condos and Apartments that cost between $25,000 and $30,000 (for now anyway) are there any banks that anyone knows of that will finance on a 30 year mortgage for such a small property? I have an in where other people might say this won’t work, I have a friend who works in an office where they scramble every month to find housing for these guys. 

I JUST paid off some debt so I am waiting for my credit to go up and have started paying on my student loan again so that will tick it up every three months or so, but my credit is no where near 800 

@Paul Sandhu with respect from what I know to be true is that the average american has an income right around $30,000 per year (I know when I was working at Franklin Templeton Investments I was making a whole lot more but we are not talking about people like me, we are talking the "average"), My sister worked for the FDIC and I know she was making like $73,000 a year as one of there agents (she said she makes about average) who traveled to different banks to either get them back into regs or close them down (a whole lot of banks are outside their 3 month late payment so if there was ever a run on banks about 1/3rd of banks in America would not be FDIC insured), I can't speak for travel nurse directly but if the average nurse working in a hospital is making around $80,000 a year and there are 200,000 gypsy nurses I am thinking that focusing on furnished rentals with a 30 day minimum is a great way to get around uppinty pin heads who are looking for something to complain about and local regulations, and I think that by marketing to people who by the nature of the work they do are forced to reallocate is the smartest way to get more renters with less vacancies. But again, this is all just from my studies about how things work and my education is ever changing. If Dodd Frank had never come along I would still be flipping mobile homes and doing the "Seller Finance" trick. But those days are gone and we all have to be like sharks… we "Just Keep Swimming" or we die. And to be honest… I am just looking to generate the income to start investing in grade A Broker Grade A Life Settlement policies (I know a lot of uneducated (and some very clever people who make their money off of stocks or real estate) people bad mouth LIfe Settlements but if it's good enough for Warren Buffet than it's good enough for me. I am not looking to be making $1,000,000 a year I am just looking to be making what The Woodrow Wilson School at Princeton University calls "The Good Life" adjusted up (but never down) for the cost of living and as of 2018 that's around $80,000 a year. The Woodrow Wilson School at Princeton University has done study after study that pretty much proves that is the sweet spot and anything over that really is just bragging rights.

@Luke Carl I am SO VERY SORRY that I did not make myself clear. I want to go with Corporate Rentals with like extended short term that are 30 days or longer with things like Nurses, FDIC Agents, Oil Workers, you know those people who have to go into a hotspot to make things right and get paid BIG BUCKS for what they do and pay for like 3 months at a time.

@Ethan Cooke for the very wise words of experience. Thanks for the heads up @Luke Carl I am not that kind of guy but if I can do it like you do I will give that a try. @Julie McCoy Thanks for the imput I was going to do the AirBNB thing but for the life of me can not imagine why anyone in their right mind would want to vacation in Oklahoma so before figuring that all out I was in talks with hotel house keepers and in the process of talking to my network to find reliable handy people (if there is one thing Oklahoma excells at it's half wits saying they can do something they have no experience at but are willing to waste your money pretending to learn how to do the job.) 

I am just getting started doing extended stay short term rentals (I am about 3 months out from being up and running) but I might be moving in 2 years or so. My question is does anyone know if Evolve or Turnkey who will manage (in different ways) short term rentals do the same for extended stay? I mean it makes sense but since I do not actually have a unit up right now I don't want to call them so if you know I would love to hear what you have to say.

OK, so for those of us that did not know (I myself did not know this because GOD knows I would have nipped all this nonsense about leaving the money in a retirement fund in the bud when it started) IT IS THE LAW that when you inherit a 401K as a non spouse you need to pay an inheritance tax on the total amount the next tax filing anyway. So according to the accountant my sister talked to it would be unwise to be forced to liquidate the 401K pay taxes on 100% of your inheritance, and then put the remainder back in an IRA that prevented you to get your hands on the money if you are under 59 & 1/2.

This dear readers is why YOU CAN NOT TRUST what you find on web pages (even motley fool missed this point... had I googled "do you pay inheritance tax on a 401K" I would have saved myself a lot of head ache) 

After my talk with the Great and Awesome @Jason Hartman today I am no longer confused about the question I actually asked about should I invest in apartments or single family homes... I am donating all my other real estate investing books to the Goodwill and I am only keeping my books where I don't need a commercial loan for the first 10 properties.