All Forum Posts by: Ryan R.

John Jabson, check out this forum from a year ago. It looks like financing under $50,000 is possible but you will have to seek it out.

http://www.biggerpockets.com/forums/49/topics/67157-can-anyone-refer-a-lender-for-an-investor-loan-below-50-000

Brian Hoyt, that's a dang shame if true. There has got to be local institutions willing to finance a deal like this, especially if OP commits an additional $5,000 to improvements. I can see a higher rate and short term but since he is looking to flip, this shouldn't be a hindrance.

Think about them lending $40,000 auto loans with practically 0 down and the asset loses 15% value the moment they drive it off the lot.

John Jabson, you've got to split your $15,000 into two categories.

The first is acquisition costs = Down Payment, closing etc.
Since you will probably have to put down 20%, this means your purchase price should be no more than about $40,000.

Look for houses that you can buy for $40,000, that will have some equity the moment you purchase it. Then spend the little bit of cash you have left on paint, flooring, landscaping etc. You said that you have done some contracting, so put that skill to work.

Since your rehab budget will be small, only look at properties that need cosmetic work. These properties will yield less profit, but will allow you start getting in the game and making some money.

Don't forget, although you can only purchase properties around $40,000, you still want to make offers on houses above this amount. You have to make money when you buy.

I recently signed a 3 year lease with my tenant. Little old lady who is retired. She was already in the property for a year, so if she stays the full length, she'll have been in place for 4 years.

I may be losing a small amount of rent increases, but I'll more than make up for it with appreciation, steady cash flow and principal reduction.

Thanks Brandon,

You're right, I need a project manager, not a partner. But as you stated, they are hard to find. I'll keep searching..

Concerning multi-family, I'm extremely apprehensive. I like the idea of being able to sell a SFR 3/2 to just about anyone as a quick exit strategy.

I just started reading your "7 years to 7 figure wealth", the first part about the new tv and late rent is hilarious and sad at the same tie. I look forward to finishing it.

Deshone,

I think what J Scott is saying is that what you will learn from the rehabber by "giving" him these deals will far outweigh the profit you will make from selling these to him.

If you can sacrifice a little profit now, you will be better positioned for the future with the knowledge necessary and also have a source for future deals. If he doesn't like one, he will pass it to you and vice versa.

Go ahead and sacrifice a few thousand now, in order to learn how to make 10 times that in the years to come.

How many of you recommend forming a partnership to start your investing?

I've got the necessary skills and money to rehab a property to flip or rent but my main constraint is time. My job often requires me to travel at a moments notice. I may go 2 months without traveling and then all of a sudden travel 3 weeks in a row.

I'm thinking that it would be worth a reduction in profit to get the extra assistance from a partner. Someone who could be at the property 7 days a week to monitor contractors and perform simple tasks such as painting, landscaping, etc.

What say you?

Turned my primary residence into rental out of convenience. I was traveling 9 months out of the year and my wife was in school full-time. Refi'd the house after a couple of years and finally started to get some cash flow.

The concept of someone else paying the mortgage and me still getting a few hundred dollars at the end of the month seemed too good to be true. It seems like a good idea for me to keep doing this with more properties.

Brian Hoyt, I just found a deal similar to your first. VA listed at $16,000. Thinking about doing just what you described. Would you do it again? I'm assuming the HVAC was your biggest cost? Did they use used/reconditioned parts to save on costs?

2 years of community college... Worst investment of my life in terms of what I thought I would get out of it. Best investment from what it taught me; hard work supersedes accreditation from an organization.

Since then, Marketing & Sales/Consultant - Mechanical Engineering apprentice.

Self taught in preparation for real estate investing : Rough carpentry/framing, roofing, novice electrical, drywall, trim/wainscotting/crown moulding, plumbing, tile/wood/laminate.

I sit behind a desk 7 hours a day but can't wait to get home every evening and pick up my tape measure and hammer.

Great Job Russell Monson. You should change your user name to Unicorn Slayer. Thanks for the reassurance that there are ways around "no".