All Forum Posts by: Ned Carey

Welcome to BP @Robert Ketterman

Normally I would remove this post as self promotion- the original poster is a lender. Since others have already replied I will call her out. This is both spam and a really bad idea. 

Sounds like a follower of a recent popular Guru spreading very bad ideas. 

If you don’t have enough money for an earnest money deposit than you shouldn’t be doing the deal. 

@Julian Delgado right now the market is high, maybe even near the peak. It is hard to pay the price of a ready to rent property and get it to cash flow. It is almost as hard to buy a fixer upper at a price that will cash flow after repairs. 

Regarding  how many properties to really cahs flow it depends on how much debt youare getting agaist those properties. Free and clear properties will cash flow very differently than those with maximun financing.  And remember if you are spending the cash flow vs using it all to grow, it will take a long time to get anywhere.      

      After buying one property how soon can you put yourself back in the market if you do have enough reserved for down payment/closing cost?

Getting additional loans depends on the type of lender. DSCR lenders loan on the cash flow of the property more than your credit so they are often a good choice How fast can you save? If you think you can buy with no money down all the time you won't get very far. It is not a sustainable business model.

Getting additional loans depends on the type of lender. DSCR lenders loan on the cash flow of the property more than your credit so they are often a good choice

@Piper Pepperidge a hotter area means more competition. That means higher investor level prices and thinner margins. Paying top dollar in a hot market may not be as profitable as a great deal in a solid market. 

I don think Baltimore is a buyers market, it may be less of a sellers market than before. 

     Something like a $1,000 bonus for every 5,000 posts? 

     Two tickets to Cancun for every 20,000 posts?

I agree 100% with @Nathan Gesner but only for members who joined before 2010

@Ivan Ng  It might be true for that lender or his or her contacts but I doubt it is true in general. Lenders want to lend, you just have to find the right lender for project.

@John Salcedo 
    "I have invested in my market for 13 years and it is no longer doable due to the price point."

Unfortunately this is true in most markets. We are at or near a high point in the cycle, its just not the best time to buy. Of course great deals and opportuities came at any oint in the cycle but now it is just harder to find. 

You have an advantage due to your experience, however low price point markets while often have better gross margins, the net margins can be lower or even negative. The cost of an water heater replacement for example is close to the same regardless of price range of rent or property value. Expenses can eat up profits in less expensive areas. 

I am not saying not to do it, just recognise the potential downsides.

@John Salcedo Welcome to BP.

I will give you a contrarian opinion. Why do you want to invest out of state? Investing in distant markets increases your risk and/or increases your costs. 

The best deals go to those that know and understand their market the best. How are you going to learn about other markets without going there or trusting others? It is WAY to easy to take advantage of out of state investors. 

@Bruce Lynn Is one of the key guys here for his knowledge on TX tax sales. 

Although I do not deal in TX what he say is pretty typical of tax sales today. Remember these are auctions, so there will be experienced people who know how to play the game very well bidding against you. It is much more competitive and therefore not as profitable and more risky than those selling books imply. 

That is not to say you shouldn't try, just be prepared with realistic expenctaions. Often a good place to learn is the county websites that often have information about the sale and the rules. 'Ther are three things to be aware of

1) The rules and laws and how they might affect your profitabiity (including hidden costs)

2) Exactly what are you bidding on.. SOmetimes the descriptions can be hard to understand or even be misleading

3) The true as is value of what you are bidding on. The assesed value or a Zillow etc estimate of value is not good enough

@Grant Jordan Ward well this is facinating. I have never run into this before. 

That said, my guess is in entirely depends on the specific property and the value of the mineral rights. You are going to have to do some reseach. No one here is going to have adirect answer. The first place i would look is the land records and see what the price was for the mineral rights. Then I would visit the property and see if there is any mining activity.