All Forum Posts by: Matthew S.

Yes sir. I would be making 7% on my 85k and then get that back when he sells.  I probably should have mentioned he’s most likely selling in less than 5 years, so it would have been a way to make 6k a year and then get my investment back and we talked about splitting any appreciation over a current appraisal price assuming prices rise. 

Like one gentlemen said it’s not really real estate investing but I was looking at ways to get a better return for a couple years than a high yield savings account. 

I know people don’t like to deal with family as one guy said, but that’s my issue to worry about and deal with not really what I’m asking   

I’m new to real estate investing and am learning as much as possible right now. 

Scenario: My brother bought a mobile home house/trailer for $120,000 in 2019. It’s realtor.com estimated value is $160,000 (yes California prices). He owes around $85,000 on the loan. 

My thought to invest: pay off his $85,000 mortgage for him and he will pay me $500 a month (instead of the $906 he currently pays the bank). It’s  a very safe 7% return on my money. 

We would have something in writing and work on the kinks for number when he sells. 

Question: As someone looking to get into real estate investing is this a good use of my money? I’ll have about $200,000 to invest with in total ($85,000 of that would go to this deal).  I still work a full time job with a lot of overtime so in reality I don’t know how much time it will take me to learn all I need before investing. This seems like a quick easy way to make guaranteed passive income. 

Thanks in advance for all the advice.