All Forum Posts by: Lawrence Rutkowski

@Sandra Lee How did this end up working out for you?

Pros and Cons to everything. Pros: Lower income typically cash flow much more and a higher ROI/CAP rate as acquisition is cheaper.

Cons: Lower income tenants typically = higher maintenance and have money problems. Cheaper housing is cheaper initially, but as the years and wear and tear roll on, you will spend the same $$ on repairs/maintenance and get less out in equity and return on income than you would on a nicer property/area.

Again I use the word *typically. You can make any strategy work in any area as long as you utilize proper due diligence. 

I currently have two rentals, they're both C properties in C areas. I've made it work just fine for me, but learned some things along the way.

Is it legal to use unlicensed assistants to make calls for deal acquisition? I have my license, but don't plan on using it for licensed real estate activities while looking to acquire and flip or wholesale off market deals.  Any insight??

https://www.trec.texas.gov/article/use-unlicensed-...

@Mark Castley There's not much on BP relating to telemarketing for leads, do you still do this? 

I'd be very interested in learning about the structure, agreements, scripts etc if you'd still be willing to share.

@Wayne Brooks Yes, there are many like that, so that does clear that piece up. But there are also many without. The houses just sit and rot.

Hello friends,

I've been finding a lot of vacant homes driving for $$'s, however when I skip trace the owner and look up property history on the county website I'm finding in many cases the homeowner's name is still recorded on the deed, yet the lending institution has already taken control of the property.

Why is this? How can I more accurately verify ownership information and circumvent this? And......... How can I buy (or attempt to buy) from the lenders?  These houses are a disaster, yet the banks hold them..

Hello friends,

Any investor agents out there create websites for property listings you're marketing? For example; 123smithstreet.com?

What does it cost roughly, any companies you recommend, and do you find it's worth the cost/effort?  

Any other digital/online marketing aside from the MLS, Realtor.com, Zillow etc would appreciated.

Thanks!

@Ericka G. Are you looking to grow this money with a "hands off" approach, or are you looking to diversify in any capacity possible?  

I'm not a financial advisor or expert, however I agree with @Troy Fisher's sentiments and as such, I'm in the midst of opening a Roth Solo 401k. Very minimal fees, large contributions are allowed (up to $54,000 per year) and you can control what the funds invest in. For example; various real estate investments like notes or even real estate itself, precious metals, cryptocurrency, oil/gas, etc. Depending on the firm, almost anything you can imagine (*as long as it's done within the legal parameters of the vehicle, your fund can't invest in your projects for instance. You can however lend yourself up to $50k from the fund)

Again, I'm not an advisor, nor did I like paying them through my ex-employer sponsored 401k, but this is a common approach within our REI community for those that are business owners, want more control over their assets and don't want to pay brokers for it.

Just something to think about if you haven't already.

Good luck, and congrats on your early success!

Hello Friends.  Heres the scenario:

My Father, another partner and myself are looking to acquire a unique property. It's a waterfront mansion built in 1888 on 5 acres with 10 rentals only 1 of which currently rented, 1 owner occupied, with the potential for 2 more provided we subdivide and build them out. The project needs a fair amount of work, roughly 100k-135k in rehab costs. Appraised value is 560k, ARV roughly 700k, entertaining an offer for 430k. I will have harder numbers by the end of the weekend. There is a lien for 94k in back taxes. The initial idea is to hold on to it, refinancing after a year. We should be able to get it cash-flowing $1,400 per month within 60 days from acquisition. (Some of the units are in decent shape and only require cosmetic repairs).

1) What structure do you think best? A 3 member LLC, 3 Separate LLC's, or something else? (Also, I currently live out of state, the project and both partners are in NY, I live in TX, we all have at least 1 LLC currently.)

2) We have the 87k-100k in hand for down payment, however we need to find the best way to finance the additional principal, as well as the rehab costs. What are your ideas? 

Any input with sound reasoning is much appreciated. Thanks!

Home Depots typically have more building material items, lowes is indeed more of a decor store than HD.

The biggest determining factor for me is if you get a Home Depot Credit card, they offer continual 6 months interest free financing on everything in store.  Lowes offers a 5% discount. Personally, I'll take the 6 months interest free and more times than not, should have the project completed and house sold before I'll have to pay. (For those materials at least), cash flow is king!