All Forum Posts by: Account Closed

I would reckon I poured $50,000 easy into three properties over 2 years to keep them going to avoid bankruptcy. The bankruptcy still happened and I was out tthe 50k. Lesson learned. 

I was doing well until the downturn and could no longer find renters. That's what buying at the top of the market will do to you. I was a fool. Now I know better. Cash only baby , owner finance. 

That disaster was the worst mistake of my life bar none. It DID lead me to TX and a lot of good things, but the experience was hell. I hope we can convince Kay to bail on this deal yesterday. 

Joe, in my case, it was three. 

There are experts on BP that know far more than I do when it comes to analyzing deals. All I know from my experience is just your description above makes my blood run cold. I am having flash backs here to my last hellish REI experience in VA, thanks a lot!!!! :) I am kidding with you. Trying to make a point.

I would never EVER do this. Want to end up with sleepless nights and a chapter 7 in your future? If not, I would reconsider. 

Maybe other experts here can shed more light than I can. I am only speaking from personal experience of dealing with rentals with thin profit margins. 

Sounds like to me that you want to be an investor but you lack the cash to get into your market. Either save up cash or find another market, or another way to invest in your market that allows you to make some money.

I consider one of my main missions in life now to warn other new investors from doing deals that will make their lives a hell of negative cash flow, paying out of pocket to keep your bad investment afloat (can you IMAGINE THAT? Buying a property to make money, and now you have to pay your hard earned money to keep it going? I've been there. It is horrible), sleepless nights, collection calls and bankruptcy. 

good luck.

Some of ya'll probably know by now that I like to seller finance my houses. Usually I buy in cash, or sometimes use OPM for 1-2 years for part of the cost of the distressed house. On houses I buy in cash, typical return is 12-15%. And on the ones with OPM, it's about 10-11%. 

Given that 90% or more of what I see on this board is about rental investing, I think this is a good topic for conversation for people to learn about other options. Some may not like owner finance. That's fine. 

I don't like rentals. I love owner finance.

I first got into this type of REI about three years ago after I was overleveraged on rental properties on the East Coast in the crash and got wiped out. Yep I failed. I swore off real estate because I thought the only kind was rental properties with mortgages and all the landlord stuff.

Then I came out here to Texas and learned about cash flow with no maintenance. My first deal here I make about 15% ROI holding the note on this house that has been rehabbed by the buyer.

This style of REI surely won't work in every market, and you have to qualify your buyers per the Dodd Frank rules. Use a RMLO to be 100% certain you are in full compliance with the law, and check the usury laws in your state. Dodd Frank does set up a 120 day foreclosure rule, so make darned sure you get yourself a properly qualified buyer so you don't have to foreclosure.

You also need cash or access to cheap OPM to make it work.

But for me, this style of investing has been a triple blessing - straight cash flow, no headache and stress of being landlord, while affording hard working people the chance to stop renting after 10 years or more. 

I don't depend on tenants to pay me. I have buyers pay me. It's a lot better. They have skin in the game. 

We have done luxury homes and got stuck with them in the crash. The best properties for me performance wise, hands down, are the 50-60k houses I buy for cash and owner finance. I focus like a laser on affordable homes in my town and don't do anything else. Very profitable and very good for the community. 

Others on this board can enjoy being a landlord. Not something I want to do again. 

Staying focused I think is key. It's so easy to get distracted and go in 20 directions in REI.

Exactly alex. Buy under market value and resell for a profit. that's what it all comes down to. A million ways to find the deals. in my case, my mentor (free) feeds me profitable deals. He makes money when I buy, and I make money on the deals. Works well for me. ! 

Some do of course. My partner has developed a good reputation as a wholesaler here in town for one big reason - he buys with cash and closes in 10 days or less. :). That type of reputation brings a lot of good deals our way.