All Forum Posts by: Scott Schultz

My fist flip I purchased in 2007 I am a Broker and I found it on MLS, (havent found an MLS deal in years) paid all cash for purchase and rehab, I looked at it, no inspection, but I understand construction, and have been around it since the first roof I helped with when I was 8, never professionally but my family was always advanced DIY'ers. I turned a nice profit, then I was ready to go sell what I was doing to banks, and with a profitable flip with pictures and numbers, I was golden. 29 flips and 24 rentals later here we are. retired at 44 years old

@Andrew Cornstubble I also recommend never taking advice from someone you wouldn’t trade places with, I know plenty of people wealthier than I but I wouldn’t trade places with them because I am free, they are trapped

as far as trying to get others behind you, dont plan on it, everyone will tell you why investing in RE is a bad move, what you will find is, they either have a few rentals and self manage, and have horror stories, or they dont own any but know someone with bad experiences,  many people have had bad experiences with rentals, but most of them have not run them as investments, they take everything personal and dont run it like a business. I have 24 locations, (27 units) most of my peers thought i was nuts, but im 44 and consider myself retired, and they are all working with no end in sight,  but in their mind rentals are way too much work, I dont know I maybe spend 2 hours a month managing my managers, I can go on vacation when ever I want and can conduct business from wherever, Im going to Iceland coming up and none of my tenants will know im gone, heck most of my tenants dont know who I am, or that I own the house they live in. 

  If everyone is telling you how bad it is you are on the right path. stay with it and in 10 years they will see how wrong they were.  

https://www.wra.org/WREM/Dec16/ProcuringCause/

@Kelsi Dockins look to the Commercial lending department at a small local bank, they will do in house loans, also called "portfolio" or Commercial Loans, the only loans I have over $50K are Lines of credit, all of mine are sub $50K loans. the terms are usually 3,5,or 7 year rate with 15,20,or 25 year amortization, so every 3,5, or 7 years you renew the loan at current rate, much like an ARM, but this is very common for Commercial, people get confused about borrowing commercial on residential, but, you are owning this property for business, AKA commercial purpose, to make money, this is what professional investors use, and anyone that has maxed out their secondary market financing. I only have 1 Fannie Mae loan and 11 commercial notes and 2 lines of credit, as long as your debt stays low, and you are mindful of your renewal coming up as it relates to market changes (I.E. down turns) you are fine, I never go more than 60% LTV this gives me a 20% equity swing if the bottom falls out of the market, and my lender will still renew at 75% LTV (figuring pay down) hope this helps

Congrats, I have done my share of online auctions, as well as Sheriffs auctions, and have purchased several sub $10K properties. The key is to stay diligent and keep searching and be ready to pull the trigger when a deal arises. congrats 

Very good points @Jeff Tallard I agree with you and run my portfolio much the same way, especially with regards to amort schedule, if is dosnt meet my cash flow needs on a 15 its not a good deal. I do hire Management in my different markets, as I do a poor job of PM so I have great teams working on that.  I hope some newbies and maybe some more seasoned can get a few nuggets that stick out of your letter.  Thanks for sharing