All Forum Posts by: Matt H

In Canada there's only certain provinces you can look in. From there you you have to focus on smaller cities and smaller towns. The place I'm buying only has 120k people living there. Same within the US I'd imagine. Just focus on smaller cities and town and you'll find properties going for cheap. that's not to say that they don't cash flow in bigger cities though. It's different everywhere you look.

Here's the deal:

I'm buying a 29 unit building for $820,000

I have the first in place at: $620 at 6.5%

I have a second in place for $50k at 6%

I could get another loan for $150k at 16%

If I did it this way it would be a no money down deal. But the net net cash flow would only be $1000 per month after everything.

Or I could put in the $150k and the property would then net: $3300 per month after everything.

What would you do and why?

Here it's almost always 4% of the gross. But you don't need a property management company. Trust me don't you dare get one or you'll have no profits. All you do is put out an ad saying your looking for an experienced resident manager. You find a fellow, or couple who have done it in the past. Do a thorough background check. Then you offer them $25 bucks per unit per month. So if you're property has 20 units you subsidize their rent by $500 bucks a month. They will do everything such as move in move out, deposits, maintenance, notices, etc etc etc. All you do is call them once a week or month to go over everything. Don't get a management company. Unless you can get a deal like I got paying 1%.

Well I wouldn't go buying no Island but maybe a vacation would be nice. I think private lending is a whole other ball park.

Depending on how much houses go for in your area there is a chance you could get started on that amount. You'd start by flipping paper contracts.

So you find your local real estate investment clubs. Go to them and feel them out. Then you find a realtor. Go out and buy a house, townhouse, duplex or condo. When you go to buy the contract will need to read:

Buyer: You....and or Nominee
Purchase price: $100,000
initial deposit: $1500
Additional deposit: $5000
First Mortgage: $75,000
Balance: $18,500

All the "subject too's" for 30 days.

Then you take that contract to your local REI club. There you let everyone know that you're selling the contract you have on a specific property. Sell for 2-4% of the listing price. So on a $100,000 property that means you make up to $4000 plus your deposit money of $1500

If you can't sell the contract by the condition removal period then you just do not remove conditions. that means the house will end up going back to the seller and back up for sale, at which point you'd get back your initial deposit, and you'd just have to go find a different building to buy.

That's one way you might be able to get started on $1500.
Flip some paper
then flip some houses
then eventually flip and or hold apartments.

Maybe think about what you'd like to achieve out of REI long term. Once you know that then you can work back to what you'd have to do to get there. And go get Carlton Sheets course of ebay. That will be your key to learning the business as you drive to and from work each day.

Well I'm sure there might always be some new stuff coming up to keep me busy. Just that the last several years have sort of been a roller coaster ride. I was doing extremely well with my other business, then I had a problem with it and had to re-establish the whole thing which put me back down to square 1. So then I was flipping houses and working on my business. Got my business back up to par. Then I did a couple major flips in 06. Closed on a large apartment in early 07. Then I just sold my building and the I'm buying these three more which I have all under contract, which will be closing in June and August. But then after that I almost feel like I'd like to give up with real estate for a while. Just have to figure out something new to occupy my time. Even now though it's just kinda frustrating cuz I wake up and there's like nothing to do. I have to call my mortgage broker today which will be a 5 to 10 minute conversation. Whoppie! That's my work for the day. And yesterday I didn't even have that to do while I'm waiting on these deals to close. Well actually I had a 1 minute conversation with my realtor who informed me one other development in regard to the deal. So I just feel like it would be nice to do something interesting with my days again.

Admin.....where's the block button in this forum anyway?

you guys amaze me.

Stay away from the land. You won't easily find a loan for land, if at all. Also it could take you an awful long time to find a buyer for land. That takes years in many cases. Anything commercial often takes a long time. We have an extremely hot market here right now. So hot that last year property increased by 52%. This year it's also been mad. And everyone is buying up apartment buildings. So I thought mine would go in weeks. Well it took 5 months, because anything commercial is difficult. Stick with house flips which can be sold in just days. You should be able to find something that you can flip for five figures net without too much difficulty. Just keep looking each day, and maybe making an offer each day as well. Something is bound to come up very quickly. It's funny because I have some stuff on the go so I stopped looking. Well a buddy of mine who's just getting started goes out finds this apartment that if condo converted could net him a million bucks. He tied it up and he's buying it. I couldn't believe it! I was like "rats should have kept looking anyway". Like 1 million net! So there's good deals coming on the market all the time.