All Forum Posts by: Louis D.

I'm doing the brrrr method and I found a good deal. I called up my friend Fred and asked him to borrow 50000 he said "no problem". I asked him how much he wanted for interest, he said "don't care". What is a good rate of return? 10%? I want to be fair. I also want to put his $ to work, get a good return so its beneficial to him to do multiple deals in the future. It will tie up his $ for 7-8 months. After 6 months seasoning I can refinance the property and get the cash out. I just found another deal for 65k that's REALLY a good deal. (I have a realtor and contractor looking at the two homes for 65k later today) So, what is a fair rate of return for the use of $? What is the going rate, if there is such a thing?

For someone starting out what do you recommend for signing docs? I'm just starting but I want to be able to lock in deals quickly. Also who has blank preprinted documents I can carry with me to purchase a home?  I lost a deal last week. We worked on the deal for months, drove 950 miles, checked it out and said "I'll take it" (cash deal fell through last year as we could not get title insurance until now) seller said great! Two days later he took a offer that was 10k larger then mine. Oops, just because my handshake is as good as a legal contract does not mean my sellers hand shake is good.

Wow, this is a new one. Have they been a tenant long? What are they doing with the downstairs? Are they moving in a family member? doing Air Bnb? Based on what they are doing you can decide what to do. Having the work inspected is a good idea regardless of what you do. A family member would be of less risk then AirBnb. I would up the rent a bit to help you with expenses when they move. I like the advice you have received on quarterly inspections, stern letter warning of eviction if any changes are made. If they are trying to move is a collage student or a family member I would feel very differently than AirBnB. Nothing wrong with the AirBnb concept with prior approval of the owner and they failed to do that. Is it in an easy place to rent out? What will the eviction costs be? Good luck and keep us posted.

One more option that can play out is keep your cash. Maybe we are in deflationary times and the trillions of dollars are just preventing the downward slide. If this turns out to be the "great depression" cash can be your best performing asset in real terms. Your cash will be able to buy more. We are used to inflation and think along those lines but with all the trillions coming off the printing presses you would think we would have run away inflation? The stock market crash of 1929 was so severe that the stock market did not reach its 1929 high again until 1954 so IF it goes that way cash will be king. My friend and mentor thinks the economy will bounce back as the economy tanked because of Covid not because something was wrong but I don't think a lot of service jobs are coming back. Time will tell. I'm glad I am in real estate.

Not sure what state you are in. Mountain West Financial goes down to 35k on home loans. Message me for phone number if you want to contact someone directly.

@Sharad Peterson

Keep asking. Each bank different criteria and those can change. I contacted 6 banks for cash out refinance. Two said no, one bank does HELOC up 60% no seasoning, one said yes with loan minimum of 35k loan with 6 months sessoning etc. I'm still shopping as house thats getting cash out loan will have renovation completed in two weeks. Good luck, keep calling!

I'mm

I get the security of having a home paid for. So here for my example we have a person with a business in the 20-25% tax bracket. Business makes 100K profit for the year OR the company invests the 100k in real estate properties, makes no profit that year and takes out loan/loans on his or her paid off properties for 100k at say 5% and uses that to live on or put it in the bank. That is a savings of 15-20%. So my question is would you feel just a secure it you did the above and put the money in the bank? (In reality it may be wise to show some profit just shift things to  the lower tax bracket.)

Great question. My friend ended up with multiple SFRs. So most are  paid off and some are leveraged. Things are structured so if Covid hit the fan he would loose leveraged houses and keep payed off houses. His cashflow would drop some but not enough he would need to go back to work. 

Great question. My friend ended up with multiple SFRs. So most are  paid off and some are leveraged. Things are structured so if Covid hit the fan he would loose leveraged houses and keep payed off houses. His cashflow would drop some but not enough he would need to work. 

Great question. My friend ended up with multiple SFRs. Some most are  paid off and some are leveraged. Things are structured so if Covid hit the fan he would loose leveraged houses and keep payed off houses. His cashflow would drop some but not enough he would need to work.