All Forum Posts by: John Thedford

Do either of you have any retirement programs? You both should be putting money into some form of retirement program such as a 401K or IRA. My philosphy is to put in the maximum allowed each year. Your other choice is to give it to the government. Which do you prefer?

MGJohn

I just bought 3 properties. I put them into my S corp. That might have been a major mess-up! I was told that gave me some protection in case of a lawsuit, etc. I am aware of trusts but never considered that as an option though I have some high value collectibles that are in a trust. If I take these out of the S corp I will probably get slaughtered at tax time. Suggestions?
Thanks!
MGJohn

p.s...if I like the idea...how would I find them in Florida?
thanks again..
MGJohn

Excuse the question but what is a NOD? I am new to the site.
Thanks!
MGJohn

Anyone in Florida can contact me. I am in SW Florida. I will be attending a tax deed sale next week. As far as returns, if you only have 20K to invest have you considered lending it out. I was doing hard money loans. I was getting over 15%. Last year I had 4 of them pay me off. On an annual NOI I received 21%, 24%, 28%, and over 30% interest on them. Not shabby. At this time I have a few more loans out. I never do any loans under 15% and that is pretty good, safe secure income. I was only doing 1st position with about 25% LTV. With 20K, you can make a good profit over a year or two if you get 15% or more.
Good luck!
MGJohn

I am going to a tax deed auction next week. Never been to one. It sounds exciting. On another note, how does one get into wholesaling properties? I never heard that term till a few months back. Can someone please point me in the right direction?

Thanks to all...love the site. This is my first day on it..and as you are aware...there is a mountain of information here for anyone wanting to learn!

Thanks
MGjohn

Hello all:
I am a new reader from SW Florida. When I saw the question about 25K a month I almost decided to bypass it. Then, I thought what the heck...I can learn something.
I don't have those kind of deep pockets. I am very fortunate to have 3 properties at this time. I just started last year. I have a contract in on number 4 but it may not go through.
In SW Florida, the market is headed higher. Wish I had started 3 years ago...but that's how it goes.
On number one I paid 60K. Put about 10K in rehab. Got it rented at $820 per month.
On number two, I paid 40K. Spent about 3K in rehab. Got it rented at $750 per month.
Number 3 is vacant. Just instructed the realtor to lower the rent and GET A TENANT! Was asking $1300 a month..but no takers. It has a pool and that $1300 a month included pool and lawn care. Hoped to gross $1200 a month...but now dropping that to $1200 including pool and lawn care.
I have one hard money mortgage. $80K at 6.25 intererst only for five years. Am amortizing it off straight amortization so I am debt free in 5 years.
So, I have 3 properties. No loans on any of them, the loan is on a vacat lot. How do I multiply what I have into more cash flow?
Property 1 is worth about 90K.
Property 2 is worth about 55K.
Property 3 is worth about 130K.
All 3 are free and clear...what's next?
I do have a little free cash...and was planning on making the next tax deed sale and see what happens.
Thanks all
MGjohn

Hello all:
I am new to the site. I just discovered it. I am in SW Florida. There is so much reading to do on this site I may never have time to go look for a good piece of real estate LOL! Would someone please explain what the 50% rule is?
BTW...I know very little. I ended up buying a house last year that I had done a hard money loan on. After I bought it, I decided to keep it as a rental. Then I realized I could not make a lot of money with only one rental. So, I started searching and found # 2. It looked like a bargain and I knew I was going to buy it before I walked in the front door. Number 2 led to number 3. That one WAS a bargain until closing. Got some less than nice surprises and ended up costing quite a bit more than anticipated. So now, here I am with 3 houses and know very little. I dont know where to start...so if someone can explain the 50% rule that would be a help.
Thanks again to everyone...I am extremely happy I found this site.
mgjohn