All Forum Posts by: Scott Kimberly

My brother purchased a home like this in Connecticut that had a lot of work done. There is still a ton that needs doing, however. New roof, basement and attic insulation, better standard of wiring, etc. What was remodeled before they bought it is gorgeous. What needs work is OLD and really "quirky". They are not sure if they have 1 roof or 4. My brother redid the flooring of one room and found several floor types all layered over each other, including asbestos floor tile.

Im not trying to discourage you if that's what you want to flip, but there's a LOT of potential for costly surprises with things like this. That house is his primary residence and "forever" home, so the costs make sense for him.

I am wondering if it wouldn't be better to use a list service for CT's delinquent lists. Unless I'm mistaken every town probably does their own, so New Haven only has the city of New Haven, not Hamden or West Haven or Branford, etc.

I would also give showing up in person a try if you want to focus on JUST the city of New Haven.

@Jon Lanclos dont thank me, thank all the people who contributed such great information! 

@Chris Seveney thanks for a great example!

@Bill McCafferty I follow you. I misunderstood the prior post about the 1st and 2nd. I thought you bought the performing first and created a 2nd. Thank you for even more good information!

I can see why you've been around so long!

Question: Why the $36k second? Just an amount to use $56k to buy a new note (investor's $20k + $36k 2nd)?

Thank you for taking the time to go through this with me, it's immensely helpful!

What would you do if you had 10 years and under $20,000 to build a Note Business that would net $5k to $10k a month?

I am asking for myself, just so we are upfront with that. I also imagine that @Scott Carson will be mentioned relatively quickly. I plan on spending the next year paying down debt and saving for various baby-related expenses. Yes, as an additional wrench, my wife and I are expecting our first child this year.

Thank you all for your advice and insight in advanced! 

Thank you all for the reality check! Its very much appreciated.

Thank you everyone for the information! I know I mentioned doing something in a year somewhere on BP today, but I don't think it was here. If "as fast as possible" is 5-7 year's, then so be it. I have plenty of time. 

As for risk, everything is a risk, but a calculated one. If I quit my day job and was making $10k a month from a Note portfolio, that seemingly arbitrary number is around double what my actual expenses are. I think the bigger issue would be "can I grow at the rate I want while also working a day job" which is a different story.

I do appreciate all of you input though, if I say something that sounds absolutely ridiculous and unfeasible, continue to call me out. I am trying to figure out how all the happy stories of success and riches I read relate to that real world.

 Nope. That's why I am here. To figure out how ridiculous a notion it is to want to make the kind of passive income or what it would take to do it anyway. My question back to you is: can you define "significant capital" and "significant risk"? I know what the words mean, but numbers are more eye opening.

@Chad U. as a newbie learning the ropes, and as someone who would almost certainly consider themselves as "chaff", would you recommend "sitting this one out"? I know there is not much point in timing the Stock Market, but jumping into real estate just to say I did and buying crap Notes that lose me money while doing it, does not sound appetizing to me at all. 

By "sitting this one out" I mean that I could spend the next year squirreling away capital to buy Notes and then buy some, OR I can spend the next year eliminating the vast majority of all my debt and start squirreling in 2020.

A lot of people seem to subscribe to the "just do it!" mentality, but, again, if "just do it" means I lose money from poor decisions, then why bother. Of course, that is also assuming that there aren't any deals worth buying.