All Forum Posts by: James Friedrichsen

That is true. I might look into refinancing my house but i gotta have the closing money first. im already locked into 5.25 but i think i could get lower in that case it would benefit my particular case in the long run.

lol i wish i could say its common sense. I guess im not educated in strategic finance. i dont deal with banks that much, guess im old school. but i def see your point. theres still alot of room in my head to learn. Keep in mind also we are not buy $100K plus homes, we are getting these for $15k-$25K. so i guess leaving the note on the banks dime(if we borrow) would be best in the long run if we keep rentals.

Ben Leybovich, i like your post. Where did you learn that?

thanks all for the replies, sorry i was vague about the topic. Here is what he's been doing. He's a very smart guy but loves to shoot from the hip. When he started was very small then expanded rather quickly and was forced to roll all his houses under a company name instead of his personal name. He is at a point where he doesnt really need to borrow from the bank. but on these flips i believe he had a line of credit. He would market the houses for sale and if they didnt sell he found a tenant. He owns about 10 or so properties with tenants. Normally after he sales he reinvests his money into another house. I gave him an example last night of my situation on a personal house i have rented. I am making no money but breaking even with the bank. But if you look at it long term(30 Years) which is my loan life, all the interest i pay on my house at the end of it if i sold my house for +/- what i bought it for i would still not break even(due to all the interest i paid over the years. Right now his tenants bring about 300 positive cash flow when you figure in principle, interest. So thats why we were looking in whether we pay the bank of right away or just hold the loan. Bill Gulley i like where your going with your post. I guess we never really thought about it that way. i will let him know and we can strategize after we figure out whats really owed and what his lock is on the loans. Thanks again for all the help!

Im posting this for a friend that buys alot of rental houses that he rehabs. He is trying to try a new strategy and wondering if paying off a rental property right away is better than just holding on to the loan. Note these are loans for less than 50K. We are trying to come up with a long term strategy and what would be better for the future of his company. Any help is appreciated!
James

Looking for a sponsoring broker around the Scott AFB, Il area. I will be applying for my license soon and i need a sponsoring agent. I had one already lined up but it seems it has fell through :/ Or if you know somebody that would do this that would also be a great big help. Thanks!

Thanks Ann Will do that definately, my head hurts just thinking of all the possibilities out there.

Thanks steven, do you have any good advice to someone that is starting out? like lets pretend i go in and dont really know anything, what should i start out asking and where do i build from there? this of course all just on the financial side of things.

thanks all for the inputs, i think i will look into hiring a CPA for all that financial stuff, i just wanted to gain an understanding of what to expect. i am in a business management program for my BS Degree but havent been in any financial courses yet. It is alot of information but this forum clarified alot of questions i did have. Thanks again!

J scott- this could be a good topic to kinda touch on for people wanting to start a business