All Forum Posts by: Account Closed

I'm not real smart, but if see negative numbers on cash flow on a potential 'deal,' I think you're better off going to vegas and trying to hit it big. My perspective is colored by my memory of a couple hundred sleepless nights from 2008-10. 

Unless getting lots of registered mail is something you get pleasure from (as well as watching the mail truck pull up and get the sweats when the postal worker comes to the door), I'd run screaming from kay's deal.

jmp

I only buy distressed houses in what some would deem 'high crime' areas in my city. Whatever. As you probably have seen on my other posts, I owner finance my houses in these run down areas with really good results. Revitalization of poorer areas is a great thing! I'd say yes that higher standards for rental properties in a town is a good thing :)

having solid positive cash flow from the get go is.....pretty important! :) That's what matters above all else. Whatever you do with that cash flow is secondary in my opinion. Either use it to buy more, or improve your current asset to give it higher resale value. Makes a lotta sense to me. 

I'm sure others will have more specific feedback, but if you are not putting your own cash into it and are making renovations that add value, it seems like a defensible deal to me! :) You have a path forward with solid cash flow and are improving the asset, from what you say here. I'd say it's a solid deal. Other opinions? 

my mentor financially retired at 28 with 20k+ per month in cash flow. THAT is what a hard working person can do if they start young and are disciplined. that is a true story, and he started out dirt poor. 

my parents are great folks and educated, but they taught me to work for other people. I had to figure out on my own over 15-20 years that that sucks. You can make your own income in this life. 

Don't listen to people who tell you to just work for the man. I mean, you may have to work for the man for several years as you get into REI and start making money. But dream big. Working for someone else in a cubicle for 30 years sucks.

find a good, free mentor to help you. 18 is not too early to start. I want my 19 year old son to do a deal with me and make a couple grand in two months, and the light will probably start to come on in his head :)

No doubt there are very successful investors in this board who are landlords. Here's why I don't like it (my personal experience): 

1. I don't like repairs

2. I don't like phone calls about repairs

3. I don't like looking for new tenants every year

4. I don't like repairs eating into my profits

4. I hate mortgages on investment properties (which is what most rental investors have, I used to)

Landlording for me = stress. I didn't get into REI for stress. I have enough of that. Some will say, well Joe didn't do his homework on his rentals etc etc. Maybe they are right. Rentals are too complicated for me - I'm a simple man. I don't want to worry about a bunch of different factors to get positive cash flow.

There are simpler ways to get positive cash flow.

In my second go around in REI, I only buy in cash or cheap OPM (other people's money for short term 1-2 years), and I only owner finance. Failing that, I do quick flips to make 8-10k or so in 60-90 days and save up to buy more distressed houses.

I get straight cash flow on my owner finance houses and the end buyer maintains it (yes, they do, I get good buyers and do my homework). 

You'll get lots of trash talking on this board about owner finance. They are entitled to their opinions, and I to mine. I know what I know - I make 15% cap on owner finance houses in my city and I never do repairs. I can handle not being one of the Cool Kids on BP ;). I love what I do. :)

Bliss.

Bwhahahahahahaha! Einstein could be bankrupt in REI in a year if he doesn't understand arithmetic, how to find a deal at the right price and to not over rehab.

we only do owner finance, not lease options (which seem to be pretty sketchy legally in TX where I am). I have a rmlo I could ask if having the tenant buyer do repairs violates DF I don't know....