All Forum Posts by: Scott Karg

I've done it and it's a piece of cake. I took one properties taxes from $2600 to $1700.

12.5%
3 points
18 month term
1 point for 12 month extensions.

He is a landlord client of mine through my tenant placement business, I give him a reduced fee and he helps me with the terms.
His Standard terms are 15% 5 points and 12 months.

Myself, and many of my landlord clients and associates rekey our own. We use kwikset, and all have the same master. Works out well as we invest in the same areas and can help each other out for lost key issues or letting service people in.
I bought my kit on sale on Amazon for $88 and can rekey a house in 10 minutes. It's paid for itself many times over.

Zubair,
did we talk via email? I invest in Baltimore, own a tenant placement business there, and am a licensed Realtor. I also grew up there as well.
Please feel free to contact me. I would be glad to do lunch or talk on the phone as well.

Let me clarify the over my head title. I am referring to the financing aspect right now. If I had a job and made what I do with my business this wouldn't be an issue. I have other free and clear properties as well. The landlording aspect I am good with.

I am not buying any more until I accumulate more reserves and more importantly figure out a way to get financing with my wife and I both being self employed.

Life is good, I love this stuff!

I would assume you'd need an IRA to fund that loan in the first place...

I do own my own business, that is less than 2 years old.

Like I said, none of mine cash flow that low. I have a spreadsheet and I enter everything, including vacancy and maintenance. More info on the loans you are talking about would be appreciated Nathan, thanks.

I have purchased 4 rental properties in the past year or so. the latest I just closed on this past week.
So far the ones I have purchased cash flow VERY well. My personal threshold is the property must flow a minimum of $300 a month on hard money. None of mine are that low.

Anyway, they are all financed with hard money right now. I do own another free and clear. My biggest note is $70K. I have a great relationship with a lender who gives me 12.5%, and 18 month terms, with one point to extend for 12 months. he gives me favorable terms because I only charge him half a month rent for placement fees via my tenant placement business.
2 of the properties are financed through him. I have two others that are financed via hard money from friends, they have no balloon due date, and since they are for $22k and $30K and flow great, my plan is to just pay those off.

I have not tied to refi yet. My once spotless credit is not fair to good. My wife and I got laid off in 2008 and have since started out own businesses.

I am asking for thoughts and advice. After the latest property is rehabbed(starting tomorrow) and rented, I am going to step back for a bit and do what I can to be able to refi those properties, and my personal property.

I invest in section 8 rentals, so cash flow is king. I could care less about appreciation since very little, and sometimes none of my money is in my deals.
If I pay $50K today, and it cash flows at $500 a month and I sell it in 20 years, when it's paid off and I want to retire, even if the market is bad, and it STILL is worth $50K in the market, I still win.

Appreciation doesn't come into it at all for me, because of the type of investing I am doing.

My private home is a different story.