All Forum Posts by: Paul Meyer

I would just put in a new $100 toilet at some point. Have you looked under the crawlspace for any other leaks? If the tenant is creating the problems maybe just not renew month to month, install new toilet, and start new and write off the loss on your income. My sister installs these all the time. Sometimes they work sometimes they don't BUT she doesn't pay any of the water bills...

Also if your credit is good a conventional loan is great right now all my buyers are getting 3% down FHA loans, which makes me believe we are in a bubble because nobody has 20% to put down which is why the Dodd-Frank laws came out.....Anyways it's not easy to just come up with 40-100k unless you have access to equity line of credit, cash, or commercial lenders. There are so many. If you can just do one decent flip and not lose the money you can keep rolling over that 40-60k in profit into each deal until you get to where you want to. For me I try to do only a few low low risk deals a year. My goal is to have a few hundred thousand in capital to put down on a large multi-unit so I'm the only owner and with a big down payment more cashflow, more equity, and lower risk long-term if it's my end goal for retirement. I don't work. I only do flips but they act as my salary. Good luck.

@Bruce Woodruff I agree with him if you are telling us it's considered a total loss. You are just #1 paying for the land and location. If you need a partner to carry the load of all the work this might be too a big of a flip if you ask me. If you are getting it for a good price just assign it to an experienced investor or contractor that wants to build. Even if you could GET a person to build for you will be difficult right now because everythings hot.

If you got west PA or west upstate NY tons of properties you can do in old and now upcoming areas again or college tons. Places change. I've been looking at 4 units for $100k fixer uppers in west NY near big lakes. As long as there is a population to support and good economics. You can just tell. Is there a lot of business going on? New stuff? Close to a city/jobs. Bad and good then go for it.

My mom and sister do this but mostly off the books - my sister pays all taxes then pays my mom. For you this is not difficult. If you create a basic LLC with tax ID. You both put this business name/tax ID going through taxes and you split gross income / expenses so you both pay equal amount of taxes. You should keep a spreadsheet of total gross income/expenses if audit to show the split. You only pay on what you keep. You don't necessary need a member LLC. It doesn't even truly keep you from getting sued/loss although that's what you hear. This is where its MOST excellent to pay $100/hr to an experienced real estate CPA and have them tell you best to do it for a consultant fee then reading something in a book. Hope this helps. OH and get everything in a contract agreement everyone signs so there isn't any family drama later on..... oh boy. I'd say get financing somewhere else unless it's not possible.

Wait, so your moms an experienced investor but you are looking for other? If she's making money, organized, and knows what she's doing maybe you need to just take her out on mother - son date night and tell her how serious you are. I wish I had investing parents. I have investing sisters but they don't share any secrets or help. So are you in that dilemma? If not keep going to REI, get help from your mom, and just work and save. Maybe she might help you with a no money OPM deal.

If you are doing flips do it. I want to get mine. If you just do 1-4 deals a year you'll keep in your pocket $10-50k. If you want it for a job. Well good luck! Theres a lot of bad and ok ones out there. I do agree the top producers are now the only ones I hire and to become them it takes strategy, time, commitment, and marketing dollars.

The podcasts and books will say look for the deal first then everybody will want to back you if it's really good. Much is true, but if you have your loan officer and you already qualified for X amount you know what you CAN buy. Does that help you better? I don't know how much you've saved but hopefully its at least 20-30% of the purchase price if you have a lot like $40-100k just buy it in cash and then get a good private lender who will do remodel costs. That's what I do.

SO do you currently have possession of it or just considering getting it if you had a partner? Just look at it as any other type of remodel. If you aren't doing the work yourself get your carpenter/contractor over to give you a quote on the damage. If its more smoke it's just need gutting. If it's charcoal and the roofs gone definitely know thats a much bigger more expensive job going into. Can you post a picture??? Just consider if it's serious damage about 1/2 the cost of a new house if you aren't doing the work yourself.

see picture. the more days the more DOM but it's not as simple as just showing you what you really want. you have to go deeper and look. just get an agent to help you that likes working with investors.