All Forum Posts by: Rusty Scott

Every state is different, but typically you have to work under a principal broker for a period of time, say 2 years, before you can go out on your own

David, I would be interested.

Thanks, yes it does....so you are looking for roughly 150k, for roughly 50% ownership....and projecting 4k to 4800 gross monthly income...net income also split 50/50?

Is that an accurate summation? 

Is this old northside? Herron Morton?

Evan....Some ideas on the numbers? The rehab budget, timeline, ARV, current value?

 You do realize that most every loan for at least smaller investors are personally guaranteed? You can't necessarily just walk away if you have other assets or substantial income. Your homestead is probably protected, but not much else. 

There are people all over, just now getting recourse lawsuits filed against them from walking away from properties in 08-10. 

You have to fully understand DRs background to understand how he approaches finances today.

He basically teaches how he lived his life after he went bankrupt from real estate debt. He's very clear that he tells people to do what he would and does personally do.

He got wiped out....he was a multi millionaire by age 26 via leveraged RE....then lost everything, went bankrupt, nearly lost his marriage and was borderline suicidal. That impacts anyone...and most here probably wouldn't jump back into debt after that either. 

He took a lot of risk...way more than most here do. Now he's gone extreme the other way. Just have to understand that when listening to him. Also, his target audience is not the typical person here

I know of no way. Title company is going to cut check from closing proceeds to the managing broker company name every time. 

Need some idea of bankroll to give any reasonable recommendations. You can fix and flip in any market. They all will have pros/cons. 

In strong sellers markets on the coasts, you can likely sell a bit easier, but the competition to buy may be brutal. In midwestern markets, like here in Indy, it may be a bit easier to find potential deals. 

Are you looking to flip to retail buyers? Even here in a relative low-cost market like Indy...the most successful flippers focus on a bit higher priced areas that are mainly owner-occupied...so you still need bankroll. Cosmetic flips, with lower rehab budgets, very hard to find those deals and make them work. I see in my area large scale rehabs of older homes, with rehab budgets that are in the $50k+ range (some much higher). 

As has been stated...there is no real question here. A seller can refuse any offer for any reason they want. It may be frustrating, but there is nothing legally binding a seller to accept an offer. It could be $50k over asking price and they don't have to accept. 

Travis,

There are plenty of homes that meet your criteria. However, you are going to find these to be some of the toughest neighborhoods and most challenging rental properties in the city. I'm not saying they can't work, because they do for some...but typically local investors that can be hands on...because these are high maintenance properties and tenants. 

Many local investors don't buy duplexes whatsoever, including myself, unless it is in a very solid area (which is going to be above your price point). They look nice on paper, but rarely perform as projected.

You are much better off, IMO, with SFRs in our market with rents of $750+. 

Feel free to reach out if you need more specific ideas about areas and properties.