All Forum Posts by: Rick Santasiere

$5k down seems better, but what are the rates he is looking for on his seller financed note? Having an $800/month nut (not including taxes, insurance, property management fees, cap ex, repairs, and vacancy rate leaves you no room to even cash flow. Use the calculators with all of those to help you determine what works for you.  

Why do you need Hard money of you have the one rental paid in full with great cash flow @Gil N.? Seems to me you can do a HELOC or a HELO, or a straight up cash out refi without HML rates. I am a big fan of building equity into more than one property so that I always have multiple sources of credit available to me quickly and super cheap (4%) You could theoretically (if your DTI allows it and you have a decent in come and credit score), take the cash out from the first property and use that for two large down payments on two new houses, then finance the both via conventional financing. I just think there are more options than just hard money. And heck, I WANT to lend my $$ to people to earn a higher rate of return, but saving $$ is certainly my first choice for the world.. Good luck to you Gil

Let me know how the seminar was.  Doesn't sound like much $$ to lose, but I have heard that they spend the majority of the time "up-selling" you on the next big event or other "stuff." Just be careful.  I hope that you can get a least a few slices of knowledge that you didn't have before you went. If I were closer, I would go just to check it out :-) 

Hey Terry, Network away man! What do you do and what do you plan on doing in the future?  I am a broker from northern CT.  I do it all (buyers, sellers, landlords, property management, buy and hold, flips, wholesale, etc:)

I don't think that is allowed. As a broker, I am 100% fine with an agent building their own brand and marketing themselves. But there may be issues with having an LLC under another LLC when you are a 1099 contractor. Sounds like you should check in with your local real estate board for assistance.

I am not entirely sure what you are asking @Trey Brown, but I will do my best. There is no formula you should use, but before you pull the trigger on a purchase, you should do all your due diligence to determine the ARV. Finding a renter who would allow you to perform repairs would be hard, but it sure would be awesome to start collect rent while fixing up! If you do end up buying, then renting with option to buy, you should make sure you spell out how the repairs will be handled. I did did a lease options partial rehab to flip, and ended up spending $5k more in repairs and items that "came up" after the tenant moved in. This was fine because as the owner of the house, it was my responsibility, however, it decreased my profit at the end when he did end up buying. It worked out well for him, because he basically got a "turn key" house that he could "test drive" for a year before actually buying without much skin in the game on his end...

Always shop @Art MaydanThe numbers actually sound reasonable, but you should always get at least two offers from banks.  Try a "big box" bank and a few local banks. Sometimes you can be approved for more with a portfolio loan, which is a loan that never is sold on the open market, it stays in house with the bank that provided you with the loan.

I would absolutely buy real estate, but would lend $$ privately as well.  Getting 10% plus points on lending and getting at least a 10 cap on buy and holds equates to that $1 million never going away :-) 

Great plan!  Sounds like a super idea.  Just be careful with permits and building code.  Your local municipality could be against creating a separate living space (change in zoning). If you are in it for the long haul, doing it off the books would be ok, but then you run the risk of resale not being what it could be if it were conforming to the neighborhood. Sounds like your area is appreciating at a decent clip though.  Why not just live in it and take a year or two to finish (creating a larger single fam), then, sell and move again?  Seems like you should be able to create some serious value add, and benefit from some appreciation.  If you wait two years, you pay no capital gains either... My $.02

This should make your contract voidable and you should contact your attorney.  You should also be careful buying something like this from an owner who does business this way.  Good luck to you.  Let us know how it all pans out, but this is NOT good practice.  The one great thing is that this guy has taught you something NOT to do in the future.