All Forum Posts by: Jim & Michele Wilcox

Don't most credit cards give credit limits related to your credit score. If you have a high credit score - you'll get a high credit limit and visa-versa.

I agree with Jpopkin - some of your questions should have been asked and answered before offering a contract on the condo.

Also - it scares me that you are trying to rent this condo with very little knowledge of what to expect. Make sure you have a percentage (usually 20%) set aside from your rent for overhead like when the condo isn't rented after a tenant leaves (unrented days), repairs, HOA dues, utilities you pay, condo assessments, etc. Then make sure there will be money left over to pay your mortgage.

Just because you can rent for $1200 per month and your mortgage is $1000 - doesn't me you have $200 profit per month. There are lots of hidden expenses.

Good luck though...

Hi - Sorry for that.

Yes.

Hi - Sure ... I'll email it later today since it takes a bit of time to upload.

He could form a joint venture for each project too if he wanted. That's much easier.

We're building a spec house right now. It is an expensive one and will probably take 18 months to complete. If you build something that is desireable, in a desireable area - people will want to buy it - usually before it is done. There are always people looking for houses - in good and bad markets - all price ranges.

My one caveat - if you have never built a spec home before, think twice. Unless you totally understand the building process and how it works, you will have a hard time ahead. People think it is very easy, its not - you need to be able to schedule and budget and work with people and do 101 things at once. I've seen so many novice builders start a project only to abandon it because its too much work - start skimping, taking shortcuts to get done, build a non-quality house, and then can't sell it. It is a very time consuming process -- not to mention expensive if you have to pay interest payments along the way.

Give it some good thought. Good luck.

I'll third the idea of going to an REI club and soak up as much as you can. Another thing - you'll be with like minded people. You'll see you aren't the only one timid (guests and new members) and be in the company of people who are successful. You'll get to know some people and feel less afraid of the whole process.

If you think you will lose all your money - you just might! So like others have said - do your numbers - make sure they are accurate, and if a deal looks profitable - go for it.

No one ever said you won't do a bad deal - how can anyone ever succeed without failure? It's not a bad word sometimes. :D Good luck.

Okay. So you are banking on the apts. going up in value in how many years? Take a look at the costs of carrying apts. There is quite a lot of money expended out for things like water, taxes, insurance, repairs, overhead, upkeep, mortgage, etc. that all comes out of the monthly rents. If you know of apartments that increase greatly in value, then go for it. Its just not my cup of tea.

And ... why would they give you their money? I'm not being sarcastic, just wondering. If they are your friends, I understand. But why would a complete stranger give you their money?

I suggest you create a business plan for your idea. Get it all on paper and into a proposal. I'm sure anyone with any money is going to ask for it.

Be prepared and professional. Keep us posted.

Do you own a home? If so, you can get a HELOC. Then use that line of credit money to pay cash for a property.

If not, then you will need cash if you buy at auction. They expect you to pay next day with a cashier's check (most states anyway).

If you do a subject-to deal - you can purchase the house for very little and pay or take over the current mortgage until you fix it up and get a buyer. Then pay off the loan when you close. You will need money for the repairs though. So you might use your own cash for that.

If you find a house through a RE agent on MLS or FSBO, you could apply for a loan and live in the property while you fix it up. You can get pre-approved for that and have a letter stating so.

Good luck.

I like your idea of a buying group. Maybe if you all put up some money and pool it - that would be more equal. Why are you the one who finds the deals and puts up no money. Why would the money people trust you to know what you are doing. Are you a really successful REI? They are taking all the risk. Some food for thought.

I'm not keen on the renting idea. Splitting $200 or so net profit per month between 5 people doesn't sound great to me. I take it you are thinking long term here.

Maybe you should do some pre-forclosure buying and assign those deals and split the $6K to $10K or more between 5 people. This is instant gratification $$.

Go to some REI groups in your area and soak up the knowledge there. You'll meet like minded people too. Make contacts and maybe find some people who want to join your group. Good luck!!