All Forum Posts by: Rick Pozos

Henry has a great idea. OR you could sell them with owner financing. OR do a hybrid of the two. Stay in the house for 2 years and then sell it with owner financing!! You have a steady income for the next 30 years without the headache of tenants.

I have a few friends who use their IRA at Quest or ETC or one of those guys to lend it to other investors that they know and trust. They still make 10% or whatever everyone agrees to. They feel VERY safe, especially if they are lending it to me!!

Syndications are probably a little more risky these days. Note fund would be great, but there might be UBIT, I don't know. Loans are no ubit. They can be 6 months, 1 year, 5 years or whatever everyone wants to do. Very safe, very simple and makes you money.

I would check to see what you could rent the house for with your low down payment mortgage. Is there going to be a cash flow positive situation?? Probably not.

If your mortgage payment is going to be in the $3k range can you rent it out for that?? The theory sounds good, but you have to buy it at a discount and add value to the house to make it work. Buying a brand new house is probably NOT going to work in this situation.

Hey @Demetrius Potts there are all kinds of people in all kinds of situations. When I sell with owner financing, I usually charge 9.9% or 10.9% and people are happy to pay that. Someone with a 700 credit score will NOT pay that, but they will get their own financing.

I worked at a Pawn Shop some years back. People would pay 20% PER MONTH, 240% annual, on a ring or jewelry that they have to leave at the store. Now THAT is crazy.

All kinds of people in all kinds of situations. 

Hey @Sam Fulkerson nothing has changed. You do whatever you can to get that super duper deal funded and closed. 

I always ask if the seller if they are ok with me taking over their payments and I can get them some cash. When that does not work, I ask them if we can do a wrap around loan so that the seller is basically owner financing the property to me. When they say no to that, I have to go pretty low on the offer because I have to get a hard money or private money loan and its going to be about 10% to 12%. 

You have to talk with the seller to see what their situation is and what will work for them. THAT is how you base your offer, Condition AND Financing.

If you are moving out of the home, you should NOT claim homestead exemption because it is NOT your homestead. You have to live in the home to call it your homestead. And the discount for disabled veterans is ONLY on your homestead. This is going to cause your home's taxes to go up significantly. If it goes up 6k or 7k per year, then your mortgage payment will go up about $500 or 600 per month. 

You are going to be cashflow negative with the increase of taxes every month.

The window is IN the shower. It is going to get water splashed on it all throughout the shower. The ONLY way to get rid of the mold is to get rid of a window that LOW. Take that window out and put in a smaller window that is higher that does not get wet once or twice per day. No amount of ventilation is going to keep it mold free.

You do not need a GC license, BUT you will most likely be required to be registered with the city as a contractor and have insurance to be able to pull permits. BUT to get insurance as a GC you are going to have to jump through some hoops since you dont have a construction company and you are doing a major rehab. I am sure if you were going to install a couple of windows they would give the homeowner a permit to do that, but it sounds like you are doing quite a bit more work.

Every city and county is a little different. Go talk with them and see what they require.

I have split part of the profit with others, but they have to do something more than just lend me money. They have to find the deal or do some of the work or something. Anyone can just go and get hard money and pay the interest and NOT pay a % of profits.

10% is what I usually pay lenders. Some of them know real estate and are operators, but some know nothing about fix and flip.

I think you need to figure out what you want to do first and learn how to do it. THEN get yourself to some meetups and meet other people locally. Focus on your vision. You say you want your first investment, but you are looking at note investing, tax deed investing, loaning your money, etc. FOCUS. How to find a deal. FOCUS.

Go to a few meetings and ask every investor that you meet, "Tell me about your first deal. I am looking for mine and I need some help to get there".

Get their number and text them tomorrow and thank them for sharing their information. You will build a huge network that will help you more than you can imagine.