All Forum Posts by: Bill Goodland

In order to have what others don't have, you have to be to do what others won't do. Do you realize that over 20% of your income is going towards a truck payment?! I'm sorry but that is insane. Not sure if you need a truck for work, but I would sell the thing and buy a 10 year old used one for like 3-5k. Before getting and keeping business finances in check(yes even a house hack is a business) you need to be able to keep your personal finances in check. If you don't like what this mortgage broker has to say, I'm sure there's 20 others in your area that would love your business. Get out and network. For someone who's wants to build wealth through real estate at a young age, I see no reason why an FHA house hack can't be an option. I wish you the best of luck and feel free to reach out anytime.

Originally posted by @Jay Hinrichs:

family life plays a big part in this thought process.

think of the threads that say my sig other won't let me invest.

pay check, home at 5 for dinner,  kids soccer game on sat.

and make no mistake about it.. real estate is RISKY .. many people lose their butts at it.

You just don't see those folks posting about it on BP.. what you see here is every one posting

their success stories not their failures.. ( some do but not many)

Like when their tenant trash's their rental and 5 years of cash flow went poof...

or flipper lost 30k on a flip.  That sort of thing

Jay thank you for the feedback. I've heard it said that, if it's so simple to save and invest your money into a 401k and IRA to retire a millionaire then why doesn't everybody do it? Because it's just as easy not to.

I understand why the risk associated with flipping a house could be too much for a lot of people. I even understand how buy and hold can be scary even if you do everything the right way to limit risk. What I don't understand is people that don't invest a dime, or write off even an index fund as being "too risky" for someone saving money no where even close to retirement age. I see not investing as the biggest risk do to opportunity cost as I'm sure many other REIs do, I just don't understand why I'm in the minority among my peers thinking that way.

One of the things I love about BP is that I think I have finally found a community of like minded individuals. For the longest time I felt like an outsider to the ones around me by always hustling to find a way to find a better job, better opportunities and saving the majority of my money to invest. I feel like I almost assumed that the world had so much competition that if I wasn't doing that, then I would be falling behind. When some of the most financially secure people all utilize stocks, real estate and business to gain real wealth; it just amazes me that there are still so many people with the negative nay-sayer mindset. I've always been fascinated with people and how they think so my question for the BP community is; in your experience, what is the reason for this? Is it because they themselves failed, or have heard of problems or others failing, which leads them to think that will inevitably happen to them? Why would people rather have a savings account than an index fund? Why do you think people think they will feel free and liberated from a job that traps them into the poor dad cycle? I understand many people are perfectly happy going to work everyday and not being motivated by money, but what blows my mind is why people are so quick to want things and complain about where they are in life, but don't ever follow the rather simple success blueprints that have been around for ages. Does society condition the average american to have a phobia of risk and buy before we earn? Or is it something innate that just needs to overcame to break out of living in the average box we're told to fit in?

So I'm walking my first potential flip property with a friend and potential partner who's family member is willing to lend on a flip. Found a potential good deal on the MLS. 3/1.5 SFR listed at 175k, flipped comps in the area going for the 240-250k range. Property looks lived in but a little outdated so just from pictures looks like it would be just a cosmetic rehab. Kitchen, bath, paint, carpets etc. Obviously we'd need to rule out big ticket items before moving forward on the deal but I was wondering if anyone could provide tips on a worksheet in the file place or specific methods/tips to walking a property? We are trying to get a trusted contractor to come see the house with us to put together repair estimates and scope of work but still want to know anything else to check and look for myself. Any advice on red flags or what to look for would be helpful.

Great episode. Nice to hear the other side of wholesaling where somebody agrees that a double close is a much more honest and up front way making money off motivated sellers.

I'm the same boat. No matter how much you try to explain it to people, some would rather just shut their brain off and not challenge every decision they've made, rather than admit that what you're doing or trying to do might be worth while. People love to play the what if game rather than take action. Difficult when it's family, but I've gotten to the point where I'd rather shut up about it and show them why it was worth while rather than talk about it.

"First they ask why, then they ask how"

Originally posted by @Rob Rice:

Here we go again.  David....Listen to me closely........

WHOLESALING IS NOT ILLEGAL!!!!

MISREPRESENTING YOURSELF OR YOUR INTENTIONS, LYING, CHEATING, STEALING AND TAKING ADVANTAGE OF PEOPLE IS ILLEGAL!!!

IF YOU DO THOSE THINGS, YOU WOULD BE A SCUMBAG, THEN YOU DESERVE WHATEVER YOU GET!!!

NO YOU DON'T NEED A LICENSE TO DO IT!!!

Just remember.  You are not selling a property.  You are assigning your equitable interest in the property.  The purchase and sell agreement gives you that right.

If you want to get your license, do that.  Just understand that you are legally bound to your responsibility to the public and your Broker house.  

There is no way around that, and rightfully so.  That is the way it works.  There is nothing wrong with getting your license, just understand what you are doing.  

Also if you start wholesaling, understand what you are doing on that side also.

Here is an article that I wrote that would serve you well if you are serious about being a wholesaler.

https://www.biggerpockets.com/blogs/7384/47278-ans...

I just went ahead and reposted it below.

 I second everything he said. Act in an ethical manner by being up front, open and honest. I feel like too many wholesalers that start out try to just get a deal done by any means necessary including being shady. If you have a true motivated seller and trust the process, there should be no reason that you should get in legal trouble or a bad reputation. Do the dirty work by being a problem solver and if you're so concerned with Ohio state regulations, why not partner with someone with cash and find them deals that they can either buy for them self, or buy to resell/wholetail(buy wholesale sell retail) with a double close to avoid assignment confusion like this weeks BP podcast talked about.

Hey BP community. I could use some feedback on an owner financing or lease option strategy on a deal I might have found in Elkins Park, PA(Abington Township). Nice turnkey looking 3/2 SFR listed for rent or sale so I contacted the seller to see if I could creatively figure a deal out. Looks like they bought it in 04, are under water on the mortgage, tried to previously sell it and instead rented it out for $1,800 a month. Listed at $1,850 rent now and she'd be looking for 230k financed or 200k cash if she sold. I threw out the number 190k first as the max I'd be willing to spend(looks to be about 225k ARV). I am going to be a graduate student in the area and would be interested in house hacking, however I don't believe I would qualify for financing as I will not be employed once I move there for school. Currently have a good chunk of savings and was thinking about offering 190k with 5% down($9,500), 5% interest and a 5 year balloon when I would easily be able to get conventional financing if not sooner. Under that circumstance, my PITI looks to be $1,325 a month and I could get easily get $600 for each of the 2 extra bedrooms from classmates. Another option I thought was to lease option $600 for the option, $1800 in rent, $400 of which goes towards equity if I were to purchase the house at 200k in 3 years giving me 7.5% down(15k) where I could come in with the rest to get conventional financing and purchase the property. I know its not a smoking deal by any means, but she seems motivated and would be the ideal house and location for me. Am I better off finding a cheaper place to just rent a bedroom for $450 a month for 2 years or try to make this happen? Any feedback on what you would do or how to structure this would be greatly appreciated.

I guess I have a few different freedom numbers. First all of, I want to bust my backside to reach 5k a month in passive income as soon as I can so I can at least have that passive income security knowing that if I wanted to start a family down the road, I would at least have the freedom to not have to work and have basic expenses covered. In reality, I may work less hours at my W2 once I'm at 5k a month, but I don't think I would completely quit my job until I was at 12k a month in passive income. I think I would probably look to retire or stop actively investing if I ever reached 50k a month. Fun to dream and find a why, but right now I just love learning to process and figuring out each next steps towards my goals.

If it were me, I would ask yourself if you could see yourself for a few years in a W2 job or high end sales commissions based job. If you can, I would finish the degree. Something I don't think enough people mentioned is that you have all the time in the world to invest after college, but I wouldn't want to look back and wish I had finished my degree if lets say the economy tanks, you run out of deals or financing opportunities and need an income. The way I look at it is, I want to eventually be a full time real estate investor, but having a marketable skill-set from school is my safety net if REI goes south. Having a strong W2 gives me the opportunity to take calculated risks in my path to financial freedom whereas if you are full time REI without letting yourself season and learn the game over time, you may get in the dangerous habit of just buying a flip with tight margins just to buy something because you need to put food of the table. So what it comes down to is, what gives you the best opportunity to succeed and grow in the next 3-5 years, that will put you on the path to where you want to be in 20 years?