All Forum Posts by: Mike Freske

There is no question that MLM can be described as a pyramid scheme. A person makes more money on bringing people in as opposed to the selling of the actual product. If the products were so great a person would just sell those products 24/7 instead of spending so much time recruiting others under them. Many of these companies make lots of money on selling books and tapes and weekend conventions to get people riled up and motivated. The material doesn't actually teach anything, it just talks about some random "diamond" and how you too can be a diamond..

By definition, the people at the bottom of these don't make any money - that reeks of a pyramid scheme.

2 Votes

Originally posted by @Nick Cote:

I am a licensed electrician looking to potentially open my own contracting business. I also am a landlord of 2 rental properties and plan to continue expanding my portfolio. Any suggestions which route I should take?

1. Focus on building electrical company first then expand rental portfolio.

2. Concentrate on accumulating as many rentals as possible until I have enough cash flow to comfortably cover my monthly expenses then begin building my electrical business without the NEED to pick up jobs to survive.

I keep going back and forth but unable to make the final decision. I’ve got no issues with my current job just feel I’ve got more in the tank. I know if I start my business now, I won’t have much time for real estate which is a bit worry sum for me as I love real estate too. I’m also very handy with other trades, can do my own drywall, painting, flooring, plumbing, you name it. Which is where I could see a big advantage to going the real estate route and doing my own Renovations as a contractor saving a ton of money. Any suggestions input or help would be greatly appreciated

Can you do both? Build business during day - I realize starting a business is a full-time job, and then work on adding a rental unit a year - or whatever your goals are.

1 Vote

@Toby Thompson

You'll need to explain why you are looking for another primary residence so soon. Maybe you got a new job? Maybe some other life changing event occurred after your refi.

I had to do this last year, it was greater than 6 months, maybe 9, but I wrote an explanation and there were no issues.

0 Votes

Originally posted by @Charlie Moore:

@Joe Splitrock

Well sir, buildings actually increase in VALUE over time. Not decrease.

In 30 years my home will be worth 150k lol. Not zero dollars

I will just reach out to someone who better understands

You're trolling now, right?

You have gotten good, detailed responses to your question and you have mocked them..

3 Votes

Originally posted by @Sean Autry:

@Clifford Paul thanks for the response... Tranquility. I got it at Lumber Liquidators. Familiar with it?

I shopped for flooring at Lumber Liquidators a few times. Searched on some reviews - they weren't good. Many of the same complaints as you are talking about now.

0 Votes

@Michael Zau How about just a personal loan for that amount? Higher rates but it seems like you'll be able to pay it off fairly quickly with the rents.

1 Vote

Originally posted by @Sam Moore:

Its going to be a loan of 100k. The normal apr with my credit would be 3.8% but with the small loan it is looking line 4.7%. My broker mentioned to bump the overall loan to where it will hit a standard for the FHA loan so I can get the loan apr where I would like it. I would use the extra money for the closing costs and repairs. Is ther another move I can make? it seems that if i go up 10k total to get the lower apr, it will be the same payment as if I just take the lower loan and get the regular apr.

Have them give you all your options, but it's also dependent on value of property. The loan value can't be increased just because.

0 Votes

Originally posted by @Madden Pikula:

Would getting my MBA help with real estate investing? I am in my undergraduate degree and I have the option of staying a fifth year and getting my MBA before going to dental school.

As someone who has an MBA, it wouldn't hurt as you learn accounting, finance, marketing, etc., but it's not necessary and probably overkill for investing.

It would probably help more with running a dental business.

0 Votes

Originally posted by @Dominick Marschall:

I've inherited a duplex worth approximately 195k, I owe 89k on it. I have rehabbed the duplex a couple of months ago and both units are now rented. Total rent is $1850/month. Cash flow of about $820/month. Older home built in 1890.

I do not have a home of myself (I rent) and would like to buy a home (thinking of another duplex , living in one side). I will be able to save approximately 85k by November 2020. This would allow me to put 20% down and leave me with a decent emergency fund.

Question: Should I use that 85k that I can save to purchase another duplex, which I would live in or should I use that money to completely pay off the rental duplex I inherited?

Thanks!

Much of this depends on your tolerance for risk. You aren't overly leveraged (I don't think) on your current duplex to where even if you have some vacancies, you'll still be fine. As long as the maintenance isn't significant on something that old.

Derek has already given you a good way to analyze it. The answer, for you, depends on your goals and tolerance for risk and leverage.

I'd buy the second duplex if it were me, but it's not.

0 Votes

Originally posted by @Yuni Park:

Hello

I filed eviction not too long ago, called lawyer office today.

found out bad tenant got answered.

I cannot believe she gave me bounced check for security deposit and prorated rent.

What kind of answers she can do? speechless..

I am very panic now.

What should I prepare in next for court trial date?

Please, share your experience.

Thank you.

Make sure your lawyer has all the documentation they need. Things like the signed lease, bounced checks, etc. You'll be fine.

0 Votes

All Forum Posts by: Mike Freske

Mike Freske has started 3 posts and replied 62 times.

Post: World Wide Dream Builders (WWDB) - Amway

Post: Business ideas and suggestions

Post: Just refi'd on Primary, do I have to wait 6 MO to buy another?

Post: How can I show depreciation for my properties? Tips?

Post: I thought Vinyl was great!!!

Post: Can't get a 30k private loan: on current free and clear SFR

Post: First FHA Loan! Loan too small so apr has to go up?

Post: Would getting my MBA help with investing?

Post: New investor, please help

Post: bad tenant answered files, then what I need to do?