All Forum Posts by: Mike L.

I checked Pinnacle out by calling their references they provided, calling the BBB in Atlanta, and researching the principals of the company..mainly Gene O'neal and felt comfortable investing with them at that point. On June 27th I wired $5k from my bank account to theirs and exactly 60 days from that date I had them wire $6250 back into my account. A week later I wired them another $5k and I am waiting for this 60 day return again. The project they used my money for was a development called "Old Alabama at Cardell". The only complaint I have against Pinnacle is that they are slow with their paperwork. They promised a parnership agreement to be sent to me within 2 weeks of the date I signed a short form agreement and sent my money...it took them 54 days to get the PA to me. Also they promised to put me on the deed to the property and I have still not recieved a copy of the deed I was supposedly on. This does make me a little uncomfortable, but obviously not so uncomfortable that I wouldn't do it again. They did give me the return that was promised on the day it was promised. If anyone wants to see the documents that I have to show that I really did it contact me at [email protected] I can fax or email them to you.

Mike

I am sort of a contrarian and hate jumping on bandwagons, but I have to say

Rich Dad, Poor Dad

Mike

Great story! It's so true. Those are the two different perspectives on wealth. Some people think that there is only enough for those who fight for it. And others know that everyone can be as wealthy as they want to be. There is plenty for all and it's much easier to recieve if you give!

Mike[/code]

BV,

I disagree with the idea that 100% financing is impossible to get and that you can't cash flow. It is hard to get and most areas of the country it will be hard to cash flow. Rental properties are a good way to get a passive income, but can be a slow way to start. If you can do a flip property to boost your liquid cash then do a couple of rentals to turn that into cash flow that would be a good way to start. The best advice I could give you is to partner with an experienced investor on a deal. You will learn tons of info and get paid. If you have cash or credit there are always people who are looking for a partner. Just make sure you check them out before going into business. YOu can always bring the details of the deal here and ask about it. There are plenty of trustworthy knowledgeable people to help you. Keep learning!

Mike

You need to know several things to determine what your cash flow will be, but the bottom line is what is coming in minus what is going out.

You need to know what the rent is. Then subtract mortgage payment, property taxes, insurance, repair fund, and vacancy loss. Then you have your cash flow. Be strict on the numbers for repair fund and vacancy loss. They will depend on the condition of the property and vacancy rates in your area. Find out what property management companies use for those figures. Then if you are still making the amount of money you want..go for it!

Mike

Anyone know a good resource for evaluating the market value of used mobile homes?

Mike

Wow. I really don't know if I can pick a side to that one. On one hand anyone who is violating the law should not be treated with hospitality in this country. On the other hand, we have allowed them to come in and looked the other way for a long time so it seems a little rash to be in an uproar about it now.

Exactly. That's why you charge them higher interest and make them prove they can pay rent for two years before the banks will trust them.

Set up a lease/option with the tenant. Let's say you set up an option for the tenant to buy the house in 2yrs at $135,000. They can give you 5k down. You make the lease payments based on that $130,000 on a fixed rate mortgage at 10% for 30 yrs. Now the tenant is paying you more than $900 mo. for rent and is responsible for caring for the house like it is their own. You take their rent and pay your mortgage down. They maintain the property. And at the end of two years you have collected the interest on the first two years of a $130,000 mortgage. They still owe $128,000 and they either refi and buy the house, move out, or make another lease/option with you.

Mike

I look for a minimum of $300 mo. but I pay a property manager and am pretty tough on keeping back plenty of cash for repairs and vacancy loss. I think all things considered $400 is a good goal to shoot for. If you really want to maximize your rental properties.. try rent-to-own on some of them. You can get a larger downpayment, more rent, sell at maximum value, and some times the people don't follow through...hence the reason they have bad credit and need a rent to own...and then you do it again.