All Forum Posts by: Account Closed

I know there's a wide range of investors on here and I'm curious if there's anyone who invested their way out of their 9-5?

This is mainly for people who weren't working in real estate before and just doing it on the side while working their normal 9-5. Would love to know what peoples previous jobs were, how they invested, and how long it took to make real estate full time (without being an agent).

I'm personally working in corporate America as a digital marketer while investing in STRs mainly. Still working my job, but hoping to make real estate my full time job in the next couple years! 

Looking to obtain new insurance on a rental property. 

I was dropped from the previous insurance company due to having 2 claims in the past year (even though I have 29 other properties insured with them). 

I’ve called several other insurance companies (Geico, Allstate, etc.) and none are willing to ensure due to the claims (theft and hail damage). 

Any recommendations? 

I’ll be honest… before this post I thought this was always the kind of stuff that happened. We bought our personal house with cash so it was super easy. I always hear people talking about the work involved in buying investment properties so I just thought this was normal.

One of the most often asked questions is how to get started in flipping. Here is how I determine if I’m going to keep a flip as a “Buy & Hold” or Sell it to an end buyer. Since it’s actually a little complicated, I’ll do it in steps. There are many variables but here is one sample.

You make your money when you buy.

The simplest start is to do a search for the Average Price for homes in your chosen area. Let’s look at Indianapolis IN; https://www.redfin.com/city/9170/IN/Indianapolis/housing-market for a median price of $235K That's the range you want to start out in, as a beginner.

Then we assume 35% of ARV (After Repair Value) to do the rehab, holding costs, sales costs and profit. Why 35%? Because we have to start somewhere and that satisfies most flippers on under $300,000 houses. So, we have to buy at 65% of value. The obvious question is "How do I buy for 65% on the dollar"? That's for a different post.

So, the initial numbers look something like this: $235,000 ARV, Here is a house for our example

It usually takes a beginner 6 months from buying the house, rehabbing, selling & closing to getting your money.

SELL: It assumes you are putting 20% down on a purchase price that is 65% of what you will sell it for with a Net Profit of $22,981 if you flip & sell

RENT:  Your monthly mortgage cost is $1,302 and Rentometer says it should rent for $1,500 - a $200 a month difference. Keep in mind you put $30,550 cash in as a down payment. You get that back if you sell, but if you keep it as a rental it takes 153 months or 5 years to break even on your down payment alone.

https://www.redfin.com/IN/Indianapolis/1515-E-Kessler-Blvd-Dr-46220/home/66981054

There is so much that goes into foreclosures that it's an entire class. But, generally, if the borrower has been honest with the lender, kept all agreements made after defaulting, has a plausible explanation, has a reasonable plan for cure, hasn't been argumentative or accusatory to the loss mit department, made 12 consecutive payments on time before defaulting, and the lender isn't under scrutiny by regulators, yes, they will be "relatively" easy to work with.

Thank you for that Mike, I am aware of that, my question is if anyone has experience in working with them, how easy or difficult they are in working with the borrower to reinstate the loan or if they wish to just continue with the foreclosure.  I don't want to waste my time if they are just going to run me through loops and in the end they foreclose anyway.  

I’ve posted multiple questions about this duplex we are (potentially) about to close on. I am in over my head and need more advice. 

If it's an attorney state, who writes up the AB Purchase and Sale agreement? who pays the attorney, seller of wholesaler? Thank you in advance.

Does a loan officer who is also a realtor should work under one broker only (broker offers both mortgage loan and real estate services) to be able to work on the same transaction legally?

Thank you