All Forum Posts by: Account Closed

I would put the mortgage lender and realtor on a list to not work with again. Make sure you get a buyer who is pre-qualified with a mortgage lender that you trust and try to have buyers on a list so that realtors are not needed. Have you looked into Google Ratings and other social media to give them honest criticism? Need to let others know about business people who are incompetent. 

Adam,

Have you talked to a real estate agent to get a CMA? You may have to expand your search radius to include a similar neighborhood in a nearby town - similar year built, square footage, etc. No guarantees though if nothing is moving in that market then you may have to hold onto it for some time.

Just dropping my two cents. My wife and I have started a trial of a website called REIPro that allows imports of leads into their mailing system. It also can auto-generate the letters. It does however not have the rest automated. We have also looked into FreshSales which has much more automation of tasks, lead imports but does not fill in the forms for you. I would be interested in a more complete package if someone out there has opinions on this sort of thing. 

 I would wholeheartedly agree that RingCentral is a great way to go.

https://www.ringcentral.com/pro/plansandpricing.ht...

The Professional plan is cheap and includes all the basics that you would need to run a business professionally. Nothing against Google Voice but it does not offer the complete package and spending $20 a month for a full phone system (mobile app too) is just a no brainer for me.

This is not a short sale because the amount owed is less than the Fair Market Value (FMV), so that is off the table. Secondly, if the owner has about $151,000 owed on the property and it is only worth $180,000 that leaves only $29,000 left on the deal. There is just not enough room to finish rehabbing the property and still make any money.

If you get the equity out of the property for the 30 year terms, it is only a slight increase in interest rate and a couple hundred more per month. You can run the numbers here:

https://www.mortgagecalculator.org/

You will get less monthly income than what you are used to and have capital to invest in a second property. Where as, if you sell the property then you have only capital and no income. 

The safe bet is pay off loans and get the FHA deal, but that will take away two years or more of possible income from real estate investing. I would take some risks to achieve more now. An easy way to get some capital is start networking with other investors, seek to work for them in your spare time for free to learn from them, and bird dog deals to them to make some side profit. This will increase your education about investing and get you out of debt faster.

Another thing to consider is this:

https://www.fha.com/fha_credit_requirements

If your credit score is below 580, then you have to put 10% down on the property to move in on an FHA loan. This is huge as you are not out of the game with a low score - just need to invest more to get there. Save all the money you can to raise the 10% down and get out there.

Here is a simple formula, make adjustments to it as you go along based on what your budget and capital can tolerate:

Offer = After Repair Value (ARV) - Profit Margin (20% of ARV) - Misc. Costs (10% of ARV) - Repairs (based on contractor estimates)

Also make sure that you have about six months of holding costs (monthly loan payments) and the repair capital on hand if possible. This will keep you safer in the long run.

You will not be able to sell property or represent clients who are buying as an agent until you have passed the exams. You can however find buyers and sellers then put them together for a finders fee without being an agent. Just need to talk to a law student or lawyer about putting together a contract for that.

Sounds like you are well positioned and have a great pool of starting capital. You will have plenty to do down payments and repairs on several properties going forward. Always make sure to pay yourself back on the HELOC and LOC to avoid excessive interest (lost profit).