All Forum Posts by: Mel Hayes

So last night I'm watching Flip or Flop on HGTV and I noticed he got a hard money loan to fund one of his deals.  I was a little surprised by this considering that the show has been on for 11 years and he's flipped tons of houses, I thought he'd have tons of cash for his deals.  The purchase price was $1m so maybe he just didn't want to put that much cash in the deal?  Would there be a reason you could fund your own deal but still get a hard money loan?

Thanks

@Andres Cardenas when it come to permits its getting your plans approved, getting the city out to view it, and getting the work signed off. It can be a drag if not done correctly.

Hi Robert,

Been reading the post in here and the first thing that comes to mind is Robert is looking for a strategy that he believes in and believes he can execute.  Robert, I think finding a strategy starts with asking yourself Why and what am I looking to do?

In Real Estate there are two forms of income Active & Passive.  Active means you're trading your time and/or skills for money and passive means your money is working for you.  If you are trying to replace your W2 job you are more than likely looking for Active income.  If you have some money (or someone with money trust you and is willing to lend to you) and you want to put it to work you are looking for passive income. I'm using the work passive very loosely because everyone who owns "passive real estate" knows that its not truly passive.  I think truly understanding the difference is very important.

You active income roles are wholesaling, house flipping, project management, air bnb management, property management, and others I can't think of.

Passive income might me lending, owning rental property, owning air bnb property, house hacking, etc...

Before thinking about the what, think about the why.  Why do you want to get into Real Estate?  Do you want a sense of ownership?  Do you want to earn more money?  Do you hate your job? Do you have a bunch of money and don't know what to do with it?  Figure out your "Why" and that will lead you to if you are looking for passive or active income.  

Best of luck Robert.

Originally posted by @Curtis Mears:

@John Teachout

I am barely resisting the urge to sell properties. With the current housing prices and the fear of biden raiding capital gains from 20 to 40% has me ready to pull the trigger. Only thing stopping me is what do I do with the funds once I sell?

 I think it may be good time to possibly sell some problem properties but if they are cash flowing for you then it's not a win.

@La'Moure Newsome Whats rights do you have to the property? I might have missed it.

@La'Moure Newsome What do you mean by no ownership? Nobody owns the house?

@Lilah Johnson Before you take out any loans or do anything to your credit you should get pre-approved. You dont want to mess with your DTI while going through the loan process. I've heard you can get a loan for as little as 10% down on oos property if you say its your second home. Maybe look into that since you are not moving. Have you visited Ohio? Cheers.

@Marqus Freeman I only take online payments and I set this up during the application phase using rentredi app. I pay $1.00 per deposit because it goes through quikbooks. If the cant pay online or using the app, not the property for you.

@Daniel Tisdale Start looking for another property & 1031 exchange.

@Lilah Johnson You are going to leave Califirnia to live in Ohio?