All Forum Posts by: Michael Rosine

Thanks for the replies!

I'm not looking to scam anyone, nor am I looking for fast millions. My intention was to find distressed home owners who want to get out of their situation and able and willing investors who want deals (real 50%/70% rule deals, not pie in the sky) and make a few thousand in the process. I have a perfectly stable job that makes pretty good money, but my credit was destroyed by putting my wife through pharmacy school. That will take care of itself in a year or so, but I wanted to get in the game. I've got a a few hundred bucks every month, so it doesn't have to be 0 money involved, just not buying a house level funds.

It sounds like the consensus is that I shouldn't be a pure wholesaler if I don't have the means to be an investor in the first place. I can understand that. Thanks for the clarification on how contracts work. I'll have to think about if that's the way I want to go.

Right now I'm looking for information. Does "putting a property under contract" mean agreeing to purchase it, and then finding a buyer before closing? I've also heard the term land contract thrown around. Is that the same thing?

Hello all,

I've decided to take the plunge and try my hand at some wholesaling. I'm only going by the MLS and driving for dollars, but I have a couple leads I'd like to move on. Getting my ducks in a row means answering 2 questions:

1. How to I get a property under contract?

I can't actually afford (through cash or credit) to purchase anything at the moment, but the podcast has all sorts of people talking about "getting a property under contract." What does that actually entail?

2. Does wholesaling work for REO properties with no cash involved? Basically, can you get an REO under contract?

Thanks!

Gotcha. I knew that REOs could last for years in a depressed market, but I didn't realize it was a common thing. Unfortunately, the bank bought that property at only 30K less than ARV, IMO. The place definitely needs work, so I'm probably going to wait and see what the market does. If we have another downturn, they may be more open to getting their books cleaned.

Thanks for the info!

Hello all,

I decided to try the driving for dollars approach to finding properties, and found a couple, but I'm having some trouble understanding one of them. Here's the link to the listing on the assessors site:

http://qpublic9.qpublic.net/ky_fayette_display.php...

It shows that the current owner is a finance company that "bought" the property for $60K through a master commissioners sale. That was almost 2 months ago. I can't find any indication that the property is being sold right now, so what's going on here? Is the bank just sitting on the property?

@Nathan Emmert Thanks! I knew investment properties were more stringent, but I'm pretty much in the dark as to the actual requirements. That's on my list of things to find out; probably by just walking into a bank and asking what they like to see.

@Brandt Smith My wife and I spent the last 8 years putting her through pharmacy school (6 years of school, but the whole process took 8) so my finances are in shambles. However, pharmacists don't exactly make minimum wage, so I'm confident we can have cash on hand by next summer; no later than the end of 2017. Right now I'm researching, networking, and practicing analyzing. I've always taken the long view on things. The fact that I probably can't act on this for a year or more doesn't bother me. I assumed that I would be starting with SF or 2/3/4-plexes. Sure, I could probably wait another 6-12 months and have enough on hand to start with a commercial property, but that's a waste of resources IMO. That money could be making me money rather than sitting in an account.

@Brandt Smith I plan to spend the next 9-12 months doing just that. As for my niche, I really don't know yet. I like the idea of student housing, but I know that to hit my goal of 40 units I can't stay with SF properties. I intend to fail gloriously as something or other to find out what I'm best at.

@Ryan Camenisch Thanks! I've used the calculators a couple times and it's pretty impressive (even if my deals so far aren't). By the way, it shows that you're a realtor and an investor. Have you found that having your license helps you invest? I've heard both ways on that.

@Nathan Emmert In 3 years every negative mark will have rolled off my credit, so that's definitely my upper limit. I have an FHA loan on my house and they only went back 1 year, so that's what I'm basing the 1 year estimate on. I have no bankruptcies, defaults, or other serious marks, just some late payments (some later than others...). I don't know for certain that I will be able to get a loan at that point, but that's part of the reason I'm actively looking for private financing. Also, what's an NOO loan?

@James Wilcox Thanks for all the pointers! I actually lived in one of the old apartments near campus about 11 years ago. Totally run down, MARBLE window sills that I think were designed for maximum heat transfter, and a 74 y/o owner who was nice, but she was not savvy at all. The place has been remodeled since then and now rents for double what I was paying. That experience is part of my dream goal. Find those owners who are just in the game passively for the easy money and buy them out. 

I'm pretty sure I can get 30K together by next fall between my own funds and borrowing against my 401k at around 3%. I'm also actively looking for private financing. I've seen homes in the 80K - 120K range that I think would be a great place to start this whole process.

@Roy N. Thanks for the info! I hadn't considered local/semi-local parents being involved. That would definitely make a mess of things.

Hey guys!

@Roy N. I didn't realize there was a guarantor option for rentals. What's the functional difference from co-signatories, if any?

@Joe Marcum I actually joined about a week ago, however there is no way I can make that meeting. I work 2nd shift at TMMK. This sort of thing happens A LOT in my life right now, hence the desire to gain financial freedom.

Hello Everyone,

I'm new to the real estate game, but I've decided that being a full-time landlord is something that I would like to pursue. I've worked W-2 jobs my whole life, but I am now missing out on a great deal of my kids childhood due to the set-in-stone hours at my current job. I am not opposed to 60 hour weeks, as long as I can move those hours around as needed (emergencies happen, but I feel like I'm doing it wrong if I can't plan 95% of my time).

So here's the bright eyed, bushy tailed plan of a newbie:

1. My credit is in the tank from supporting my wife through pharmacy school. She graduates next summer, and I don't foresee any further damage coming, which should get me back up to a bank-friendly level by next summer or fall.

2. I've been reading/pod casting/asking around for about 1.5 months and plan to continue to networking and researching until I'm lender friendly. I've begun analyzing properties, however I haven't found anything that screams "great deal!" yet.

3. I live in Lexington, KY, which is a college town. I very much like the idea of renting to students. Maybe I'm cold-hearted, but I'm OK charging $500 in security deposits from each of 4 students in a 4 bed 2 bath house (my wife was in such an arrangement) while requiring parental co-signatures from renters. Maybe they'll trash the place, but I can replace the carpet and get the whole place repainted if needed without touching cash flow.

4. There are a ton of small commercial properties here, many of them owned by elderly investors who are looking to get out of the game in the next few years. My current end game is to start picking up 5-10 unit apartments and consolidating my portfolio out of single-family homes and into commercial properties. I only require 40 units to replace my current income, and that doesn't account for any appreciation.

I know for a fact that I'm being naive. I don't know the cap rate on student apartments. I don't have a network of contractors to pull from when needed. And although my wife will be a pharmacist, I won't have a huge amount of seed money to throw at this (student loans are a killer). However, I have 9-12 months to figure all that out.

I'm glad I found BP and hope I can get to know all of you a little better in the coming months!

-Mike Rosine