All Forum Posts by: Nathan P.

Hi @Jeff Rappaport,

Thanks for posting and providing learning opportunities in the community. I will be coming down tonight.

Thanks,

Nathan

I have been lurking a long time here and have tackled about half the podcasts.

My game plan is to get into a small multi-family (2-4 units) with a FHA/203k loan.

My problem is I dont believe I will be qualified for the mortgage. I have about 50k in credit card debt that I used to finance a business and that is on track to pay off in about 18 months. The problem is all the credit cards are personal debt in my name and are affecting my score and debt/income ratio. I do a lot of different sales jobs as a 1099 contractor so I do have inconsistent income but it is in the range of 40k per year.

Me and my wife also got married this year and she has a zero credit score and started a job making about 30k per year two months ago.

Any mortgage professionals out there that could tell me if its worth taking a shot on getting a home loan right now or if I need to wait it out for me to have a better case down the road?

Farakh,

I own a couple of coin laundromats myself. I have a different situation but to keep it simple I would advise you go buy a used soft mount washing machine such as a maytag top loader with a coin acceptor. There is a good market out there for used commercial equipment that you could get for good price. I am suggesting this with the assumption that your not going to be washing in high volume. Maybe 4 loads per week per unit so 16 with 4 weeks in a month brings us to 64. At that rate your coin collector may need to be emptied once a month assuming its in a safe location and your not concerned with theft.

For the record I own a good amount of LG's new commercial units (all soft mount type) and they perform well. You wont be able to find any used but a new washer dryer set may run you around $4000 with this route.

These are just my suggestions if you go down the road to purchase. I dont have any experience leasing equipment. First thing I would do is find the local laundry distributors and find out what offers they can make you.

Hi Nichole,

From the numbers you give two of the properties meet the 1% rule. Meaning that the rents are 1% or more of the value of the home. This does not necessarily mean you have a great deal immediately but it is a way to quickly analyze properties for potential. There are obviously a number of things to analyze besides just numbers when looking for properties.

Some of the things I would look for are.

-What kind of repairs have been done  to the property recently (i.e. Roof, HVAC system, etc.)

-Could the 4bd/2ba possibly be split into a duplex?

-Are the rents around market value? Get online and see what other similar properties are renting for.

Last thing people use self directed IRA's all the time for real estate purchases. I would be extrememly careful with a 401k loan. Because if you leave your current employer or fired the balance will be due immediately on that loan. I wouldnt want to be stuck with an employer because I owed them a debt.

I am going out tonight to my first meetup. Its a well established group and I understand that they should have a good turn out. I have also found a number of other meetings and have started to fill my calendar.

I have specific goals to find partners and/or mentors while going to these meetings. I dont want to come off as though im out hunting for partners.

What can I do to add value to the people I come in contact with? In the end I want to bring more to the table than anyone else. Keep in mind Im just getting in to the real estate game and have never done a deal myself.

Kumusta @Yousef Reda,

I currently operate 3 coin laundromats in the Metro Manila area. There is definitely a time frame where you have to self educate yourself on business practice from a cultural prospective. With that said my decision to invest in the Philippines has yielded many fruits.

Im sure your already aware about the quickly developing economy.

Do you have a particular area in mind for your business?

Who will be your target market? (Locals and Filipinos, Backpackers, American/Australian/European travelers)

I have found it extremely hard to work with banks in the Philippines because they frankly dont want to deal with the extra paperwork that it entails when a foreigner is involved (you will most likely have better luck as a dual citizen.) Find someone that can refer you to their bank manager even if its just for your local business account. Be prepared they will ask for lots of requirements. 

I travel to the Philippines often maybe we could meet up there in the future. Good luck on your endeavors.

@Jonathan Mueller its very kind of you to share the valuable information you did. Approximately how long have you been hosting on AirBnB? Also how long have you lived in Park City?

In your opinion is this a viable business opportunity to sublet out town homes or condos on 1 year leases? I think this would be a way to limit the risk for @Drew Whitehead and test the waters before investing his capital and purchasing the property. I have seen units in PC area for summer leases as well that are much cheaper than a lease that runs through the winter months.

In the end the big question is how much cash flow could be cleared in this resort town on an annual basis?

Just finished "The Book on Flipping Houses" by J Scott and I can attest to the fact that its a must read for the ins and outs of flipping.

Im going to use it as my quick reference guide through the whole process and probably for many projects to come.

@Michael Lee great to hear about your involvement in the area.

I have gained some awesome knowledge from this site.

What kind of investing specifically are you interested in getting into (i.e. flipping, buy and hold)?

Hi @Jeff Rappaport I saw that you have been having quite a few meetings lately. I would definitely come to your next one. Just let me know please. Message me and I can give you my number.

I would also love me some Thai food. I think Thursday is $6 Curry at the Thai Siam.

Thanks!