All Forum Posts by: Steve Kordish

HML, me as the lender? Not ready for that.

Anyone in my area willing to sit down for a cup of coffee?

Wow, Great advice! Thank you so much!

Huh?

I understand what your saying, but with my income being Zero, we're talking about HML or Private money, right? If my cash is sitting at 1% in a money market and I use it to fund my purchases, is that advantageous to paying 8-12% + points for a HML?

 Even though I have a little bit of cash? You think leveraging would be a better play?

oops, meant $2000/mo not $200

 Thank you Joe! My goal is to grow a portfolio of income producing properties ( much like everyone else) for retirement in next 15 years. Short term goal is to get$200/mo. cash flow as well as "chunks 'o cash" for closing on flip opportunities. As a side note, I have 20+ years in selling mutual funds/insurance/etc. and considering getting a RE licence to provide additional cash flow/cushion.

Ok, looking for some input from the BP community. Here's my situation ( Ill try to be as succinct as possible)...

- left my financial services business in January '15 to go full time in RE
- current income = $0/mo
- credit score 720+ (never used credit cards so lack of history was a negative to score)
- renting apartment, expenses/rent = $1200/mo.
- my personal townhome is under contract for $240K. (rented @$1900/ mo. since 6/1/11)
- should have 0 tax consequence/gains on sale (paid $180K cash in 2010)
- have $40k in additional emergency fund/checking
- have two small (and only) flips under my belt since January 2015 
- all work done myself except for electrical/ major plumbing/HVAC
- will be 55 in 2016 (so I don't have 50 more years to "play around" to build nest egg

Ok, so, my idea is to buy a place for cash in the 60-$75k range and fix it up over the next 6 months then move in as my lease on my apartment expires. This allows me to live rent free. I figure with the remaining $125k or so from the sale of my townhome I can purchase a combination of small rentals for cashflow as well a a small flip or two for additional working capital. Also considering/investigating lending out some cash ( short-term) if it makes sense. Maybe also partner with someone on some flips too. (50/50?)

I guess what I'm asking is, does this sound like a reasonable plan going forward and are there any things I may be missing. As always, I appreciate any input! - Steve

That's awesome Trent! The blog is a great idea, keeps you focused/accountable, huh? Damn, I need to do something like that, at least a journal. Keep rocking!