All Forum Posts by: Account Closed

One of the biggest issues i face when working with real estate investors is trying to convince them that they should use and leverage hard money over using all their cash on one deal. There are many areas/tops leaning one way of the other with this dilemma that you can talk about with this topic and their is plenty of room to pick it apart. 

My 2 cents.

Hard money wins in the end anyway. 

From Atlanta.. Was on the East side and a home had a huge hole in the roof and when we went in we realized there was the remains of a meth lab that had exploded and went threw the ceiling and the roof. Was Nuts. 

Why go to school? Just go to a real estate school and get your license and get a job as a real estate agent. You'll learn the business and begin to create contacts and possibly build a partnership with someone. i just graduated from business school and incurred a lot of debt about 50k save yourself the hassle and just hop full force into real estate. Personally i did internships in college in commercial and residential real estate and residential was a lot more fun. My 2 cents. Good Luck.

Welcome !!! in 3 months your going to be glad you hoped on board

-Paul

So lets brake down HM with an Example: (we have our numbers of ... )

PP 50
Rehab 30
ARV 110

Interest .13%
Pts .04

1st) Calculate Down PMT:

                                 ______HAVE__ |__NEED_______
Loan .65%(LTV) X ARV 110 = 71,500 | PP 50
                                                      | Rehab 30
                                                      | CC 3
                                                      | Pts .04 X Loan 71,500 = 2,860
                                                      | Ins 600
                                                      | Survey 383
                                                      | Mis+Fees 1,000
                                ------------------------------------
                                        71,500   |   87,843

NEED - HAVE = Est Down PMT
87,843 - 71,500 = 16,343 

2nd) 

       Cash_________________ VS___________________ HM:

CASH                                  |                          Hard Money

SOLD 110                            | SOLD 110
PP 50                                  |  Loan 71,500                 

Rehab 30                             | Interest .13% X Loan 71,500=9,295/12=774X4mo's=3,098
CC 3                                    | REcom 6.6
REcom .06% of ARV = 6.6 | Down PMT 16,190
------------------------------------------------------------------------
PROFIT   20,400                   |  12,612

Difference:

CASH - HM = Savings
20,400 - 12,612 = 7,788

Profit Margins:

Cash                                              |    Hard Money

20,400 / 83,000[PP+Rehab+CC]        |     12,612 / 16,190 DownPMT
= 24%                                            |      = 77%

                                                      |

So you can buy 1 house and get        |    Or you can Buy 110/16,190=6.7 so 6 houses
20,4000                                          |    6 X 12,612 = 75,672

                                                      |

This is just an example JUST an EXAMPLE 

@Katherine Mcgee 

Some of the best ways to get leads to get off market properties on contract for your to wholesale is to hit CraigsList and look for " private home owners " who are trying to sell their home by themselves, and lock in that contract to sell their property. Also get in your car and cruz some area/neighborhoods in low income areas and look for signs for homes "For Sale Buy Owner". Also, i have personally gotten a lot of success using My House Deals dot com i would recommend you checking it out.

it is from Rain Water. I am in Atlanta and it was storming hear last night. And well it needs more than just needing to be dried out. The water came in under the door and flooded the entire place less then 1 inch throughout the Apartment. 

My apartment flooded this mooring or rather last night. i know there is a difference between renters insurance and flood insurance, but anyone have any advice for how i should handle this situation?

@William McGuire Welcome to BP your going to learn a lot hear

-Paul

Id say it depends on your financial situation. if you can live off of your saving for the next 9 - 12 mo than don't sell it but if your needing cash quick. Then perhaps you should contact a wholesaler and then see if they can make something happen for you.

Good Luck,

-Paul