All Forum Posts by: Bill Fleming

CTRENTAL - As stated in my post, my assumption on the market change is 3-5 years, which I think is more than reasonable assumption, being that most people I talk to and real estate articles I've read have it at 2-4 years. And also as stated, the property needs $30k in renovations & upgrades. Most work will be done while I live there, significantly lowering my renovation costs.

Did you objectively read my post, or just look for reasons to 'rain on my parade'?

Staten Island, NY 4BR/2 1/2BA, 2 level SFH w/ an unfinished basement. Home is in great shape, needs a new roof, and some serious updating. Asking price is $389,000, I know they're bottom line is $368,000. Total updating/renovation costs are $30,000.

Currently, I live with my wife and 2 children in an apt. My plan is to move in, update over the next 3-5 years, doing the majority of the work myself, and sell when the market turns. In speaking to 2 separate realtors I know, I believe the house will sell for approx. $475,000-$500,000 in a decent market. I figure since I will live there and it's a good fit right now for my family anyway, I can wait as long as necessary to get between $475-500k. And if I fall in love with the home after doing all the work and living there, then I got a great home at a very decent price.

Most likely I will be putting $150k down (a 'loan' from a family member, just wants the $$ back + 20% of the profit from the sale) and carrying a $218k mortgage.

Hope this is enough info for everyone, I'll post replies if anyone has any questions. Thank you in advance for all your help!

Yea she's in, she understands this is a move to much improve our future, and supports me 100%. (We'll see how that goes when the bathroom is ripped out and I'm hanging sheetrock at 11pm!! :D )

Commute, neighborhood, and schools all actually improve with the move. And as a topper the wife lives closer to friends.

Staten Island, NY 4BR/2 1/2BA, 2 level SFH w/ an unfinished basement. Home is in great shape, needs a new roof, and some serious updating. Asking price is $389,000, I know they're bottom line is $368,000. Total updating/renovation costs are $30,000.

Currently, I live with my wife and 2 children in an apt. My plan is to move in, update over the next 3-5 years, doing the majority of the work myself, and sell when the market turns. In speaking to 2 separate realtors I know, I believe the house will sell for approx. $475,000-$500,000 in a decent market. I figure since I will live there and it's a good fit right now for my family anyway, I can wait as long as necessary to get between $475-500k. And if I fall in love with the home after doing all the work and living there, then I got a great home at a very decent price.

Most likely I will be putting $150k down (a 'loan' from a family member, just wants the $$ back + 20% of the profit from the sale) and carrying a $218k mortgage.

Hope this is enough info for everyone, I'll post replies if anyone has any questions. Thank you in advance for all your help!

What are the advantages/disadvantages to buying outright vs carrying a mortgage. Are there savings related to closing costs, etc.?

I have found what I believe to be a good deal, but I'm worried about closing costs and selling costs eating up a lot of potential profit. I may be able to purchase outright if there are significant advantages to doing that.

Thanks in advance for all your help!!

Do I smell or something? ;) I have written 3 posts so far w/ only a single response to each. :( Where's the love Bigger Pockets?!?

Obviously tounge and cheek, just hoping w/ a little nudgeing I can get some advice from the BP community. I value all of your opinions very much.

I’ll give everyone an overview of my situation, then ask my question.

I have been interested in REI for over 5 yrs - read books, websites, drove around, open houses, etc. Yet fear, laziness, and having $0 to invest, have prevented me from ever getting my feet wet. I am now at a point where the fear and laziness have gone away, yet my financial situation has stayed the same ($0) ;)

I have a friend that through some unfortunate situations (father died in 9/11 and mother recently passed away) has come into a large amount on money (just under $2M). He is looking to fund the real-estate deals, with me doing the majority of the leg work. He is willing to put up approx. $500k in cash, and has been pre-approved on a $750k mortgage.

My question is how would a partnership of this type typically be structured as far as profit splits, etc? I would also assume we should set up some sort of LLP or LLC? He has stated that his main objective is to assist me in eliminating my personal debt and get me into my own home w/in 5 years, sooner if possible, and that profits on his end are secondary to him (I know, amazing friend). Don't get me wrong, he wants to make money, but I wanted to put that out there so everyone knew this wasn't a ‘typical' ‘Investor/Private Lender' deal.

Thank you in advance for all of your responses, I find this website to be amazing, and value all of your opinions.

MikeOH, thanks for the reply. I was hoping you would post, I know from reading your posts that you're a 'buy & hold' investor, and no nonsense in regards to your tenants and how you do business (being from NYC, that's highly respected! 8) ) Also, thank you for mentioning that it's difficult to find bldgs that will cash flow in NYC, I was up until 2am last night trying to find one bldg in Staten Island or Brooklyn that would come close to the 2% or 50% rules I've seen discussed. I couldn't come CLOSE to showing profit on ANYTHING. ;)

My goals at this point are straight forward, and I don't believe unrealistic. I would like to eliminate my personal debt (about $20k) in the next 2-3 years and own a home in the next 5 years (Not neccesarily own it outright, but have a large downpayment.)

I have some questions on how I should work my partnership, but I'll make that a new post, it'll be too off topic!

Thanks for the replies so far.

BlueStar, great suggestion. I have just begun reading more into wholesaling, and I find it interesting. I need to look into it more to fully understand the concept start to finish.

I'm just wondering, do you think since I also have access to cash (500k) and my partner having pre-approval on a $750k loan (just got his pre-approval this afternoon, which is why i left the info out at post time) I should also pursue some buy-and hold properties. Living in the NYC area, there is never a shortage of renters.

Hello all! I first want to say that this website is an unbelievable wealth of information, and I credit all the long time REI's who take their time to help out people such as my self. Thank you! :D

I am a new to the REI world (never done a deal), but am really looking to get my feet wet. I have read a few books, but mainly on flipping, which in the current market doesn't seem like a good idea for the first time investor. I live on Staten Island, NY and work in northern NJ. I have NO expendable income right now (2 yr old and 2 month old sons!), although I do have access to upwards of $500k-$750k if I presented friends/family with the right deal.

My main question is where would you recommend me starting given my present situation?