All Forum Posts by: Chris L.

@Bob Green might be able to help.  

Hi Erica,

Welcome to BP.

There are lot of options in Real Estate.  You need to decide how much time you want to devote and what your goals are for your Real Estate business.

Once you set your goals and define your resources, you can select a strategy to accomplish those goals.

Good Luck

@Joshua D. 

You have received some great inputs here and I wanted to add a few thoughts as well.  I have taught the Ramsey course at church along with the Crown Ministries course prior to that.

First: I use credit cards so I disagree with Dave on this.  However, the rationale behind Dave's argument is that people spend up to 30% more when they are using credit cards than when they pay cash.  I am not sure how scientific the 30% number is but I am confident that this is true to a certain extent for everyone and even more so for those without financial discipline.

Second: Dave says to use Debit cards instead.  I really do not like the use of debit cards. If your account gets compromised it could create a ripple effect account into your checking account causing checks to bounce, ACH payments to be returned etc.  I realize that they will take care of the fraud associated with your account but if you have an active account and now have to replace bad checks, etc, you now have a new full time job.

Keep up the great work on improving your finances!

Anthony,

You will definitely want to have the proper documentation for the state that the property is located.  This may require an attorney or a real estate agent that has the proper forms for your state.

You want to think of this as two separate transactions.  

First: They are leasing the house.  Straight forward.

Second: They have an option to buy the house at a specified price within a defined time period.

I like lease options because I know the person renting the home is going to treat it like they are going to buy the home.  We require the renter/prospective buyer to be responsible for all but major maintenance items.

We find that this can usually be structured to be a mutual benefit to both parties.

I have never used my VA loan benefits and I am not an expert in this field so you may want to pay for legal advice. If you can rent a home with a VA loan, I do not understand where it would change the rules if you were also planning to sell the home at some time in the future.

I think the key is to have the right paperwork for the state where the property is located.

Good luck.

Chris

@Uwe S. Great to hear from you.  Hope you are doing well.  Merry Christmas to you and I wish you a prosperous 2015 as well.

If your goal is simply to make the top 1%, you are not likely to be satisfied in the long run.

One of my favorite financial bits of wisdom was written 3 centuries ago:

Prov 23:4-5 “Do not weary yourself to gain wealth, cease from your consideration of it. When you set your eyes on it, it is gone. For wealth certainly makes itself wings, like an eagle that flies toward the heavens.”

I do recommend that everyone strive to be financially independent from a job.  (Defined as your passive income being greater than or equal to your required expenses.)

When you no longer need a job, you are free to pursue what you are truly passionate about.

Hey Mike,

Great question and sounds like you are helping your children learn some important lessons at a young age.

My monopoly game strategy was always based upon what was available.  Even if I wanted to own Boardwalk and Park Place, I was not always able to attain those properties during the game.  My goal was always to create a monopoly of any kind and progress from there. I still follow the strategy of pursuing whatever presents itself as the best opportunity.

One thing to borrow a quote from Rich Dad Poor Dad/ cash flow quadrant is that I have not found the bigger deals to be better. I have just found a lot of small deals that have created financial independence for me. I keep searching and evaluating but I have not found those "bigger deals" that exceed the returns that I can get on SFR's.

Keep up the great education for your children.

Chris

@Jerry W. Thank you.

@Frank Gigliotti Understood.  Something to think about though.  With the right team, it does not matter where you live.  Although I live in Ft Wayne, I have not walked through any of the past 100+ homes that I have purchased.  There are a number of successful Landlords here at BP that have helped other members invest in their area of expertise.

Best wishes on your decision.  One of the things that I have learned the hard way is to not get greedy and know when to lock in your profits.

Hi Frank

I have helped a number of Chicago investors come to Ft Wayne.  I make introductions to my team and they take it from there.  (I have no profit interest when I make those connections.)

I like Ft Wayne because:

1.  Good price to rent ratios.

2.  low crime rates by national averages.

3.  Friendly landlord laws.

4.  Low property tax rates.

5.  Low insurance rates.

I would be happy to help if you want those introductions.

Chris

Travis,

My general rule of thumb is that I am always willing to well at the right price.  How do I determine the right price?  Let me put this another way, I sell when I have a better place to put my assets.

You have already done the cash flow and have determined that you can make a better return by selling #1 and reinvesting.

I think you have already answered your own question and just need a little nudge.

Good luck

Chris