All Forum Posts by: Michael Lewis Lee

hey Parker!  Sorry it took me so long to bet back to you buy you probably already found the answer but yes is the answer, whatever is in good demand for that area and the taxes owed would be different if you could sell or rent within 12 months.  Best wishes!

Hello Brett!  I would try several different strategies.  It's great that it's occupied by a long term lessor.  On one path is so you can pay the settled final price with two different notes. One can help solve their cash needs to be.  You could have a shorter term on that second one with a lower interest rate.  That second note when paid would lower your total debt when it is satisfied.  The owner could provide their own finacing for you and if you show them on paper how much more they will make and lower their income claimed each year.  This way is usually more flexible.  You could still offer a note for the cash they need.  Of course, your evaluation will give you a positive cash flow in any direction you take.  You could resolve their cash needs by using a "cash rich"Partner.  What I am saying is to be creative.  You could use the "hacker" method but the current occupation would probably eliminated.  Find out the demand in that area and/or the sales comps to verify the price.  If this is a long term investment the current value isn't as important.  Check out the typical rent payment being made and see how the subject property compares.  I would check out if their is a need for immediate rehab or any soon big capital costs. I would tend to offer $160,000 to $180,000.  Taking a lower price with Owner Financing would help the total amount collected and spreads out their income which might make less in tax payments.  You did not say your location but they may take less overall if there is a state tax payment too.  There's always a Hard Money Loan but they will typically want 20% down and that would not fit your purpose.  A Bank rate of interest might be the lowest but require 20% down payment.   There's many ways to go but make it a win/win situation.  Good luck!

Hello Yeng!  One of the things you'll learn is that there are several dishonest wholesalers out there that might stab you in the back. I lack much actual experience but I have learned alot.  I would try to have a clause that makes your contract exclusive so to the current Owner is obligated to you or owes you a profit amount.  That depends on your customer knowing your actual mission.  If you have to close twice make sure you budget for it and that your title company is cool with that possibility and how much they would charge for that second closing and that you want to close both of them on the same day.  Good luck!

Hello Michael!  You might check out Memphis Invest orMaverick Invest.  Good luck!

Hello Jacklyn!  I'm getting started and I am 62.  There's no such thing as texting started.  You might live another 30 or 40 years.  You have to know what you're doing so take the time that you need for financial learning and/or get outside help.  Do not try to do everything needed yourself.  Learn about sales, networking, rehab, and have more than 1 exit plan.  Know that Real Estate is not very liquid so make sure you found a good deal.  Only hire experienced people that know your way.  You might want to consider a General Contractor.  Good luck!

Hello Clifford!  I do not have much experience but alot of education and I have heard several times that a bank is the hardest place to start even though their interest rates are lower and usually long term but being creative is essential.  Private Lenders and Hard Core Lenders are more asset related and include repair/rehab costs included in the loan.  Banks do not include the repair costs unless you are applying for an insured loan.  The other Lenders are usually short term and charge higher interest rates but more flexible.  You can also do a "cash rich" Partner, Notes, owner financing as a solution.  Giving up part of the profit, that's better than nothing.  If you have to refinance it's after the market value has gone up and usually a bank is easier.  Good luck!

Hello Sarah!  All of the ones so far made good comments!  I'd suggest that you interview all CPA's or CFP's or tax consultants to make sure they can do what you need and want to know and if they are willing to talk to you any time of the year, basically all of your needs.  No matter how expensive they may seem, you usually get what you pay for.  A good one can usually save you more than they cost. I do not have much experience but I am bedridden right now and I've read about 160 books in about 5 years about real estate investing, sales, and accounting, and I listen to Robert Kiyosaki very much and he recommends using experienced Team members.  Good luck to you!

Hello Kyle!  It's a good thing that your spouse is for it.  Always budget for the capital gain profit if kept under a year the taxes will be higher unless you file a 1031form.  Besides that make sure the demand is there.  It might be better if there's big employment near there and/or city growth in that area.  It probably will be better to locate in a large or medium sized city.  Good luck to both of y'all!

Hello Brady!  Actual expenses are the best and offer what the neighbors dd, or do what's in demand in that area.  Do not believe what you are being told by any seller or seller representative Look at every unit no matter what current owner says.  Double check utility expenses.  Any other expense like insurance, property taxes, and capital expenses that might be coming up can be found out online or a phone call and/or a bid by a contractor(s).  Include a management costs no matter what you think right now.  Always evaluate on the worst case scenario.  Unfortunately, I don't have the experience to say a rule of thumb used for the expenses.  You could use a BP calculator for average expenses.  Best of luck for you!

Hello Tom!  I would look within an hour drive unless you end up with an experienced Turnkey Company.  I would recommend you should be looking in a growing economy close to a big employer in a big to medium sized city.  Have a good idea when considering the future.  Talk to locals to get a firm grasp on the location and that type of property is in a good demand. Try to get Owner Financing and/or be creative.  Get 1 or 2 notes that will make them get needed cash downpayment and show them on paper what they would make and that they may end up closer to the listing price.  Good luck to you!