All Forum Posts by: Jim Keller

Just finalizing details to have my biz partner fund a small marketing budget ~1K/mo. Looking for recommendations on how to spend/allocate the budget: Direct Mail / Online Lead generation. Picking up about a 100 bandit signs on top of this. Should I just focus on Direct Mail or blend in some online marketing as well. Thoughts and advice would be highly appreciated.

Thanks

Frank

Take 10 industry professionals to lunch and get an education and then take your wife to dinner and tell her your plans to take over your market......

I'm serious, 10 real investors relationships could make your 2016 very profitable.

Good luck

Jim

2 Votes

Originally posted by @Paolo Ruggieri:

here is the situation

-Seller can't make mortgage payments on her house and is soon going to be foreclosed

- seller owns a rental free and clear

- seller wants a loan... She does not want to sell.. She thinks (hopes) to get $$$ from a new album she is about to market (she is a singer)

Giving her a loan is too risky, as she has no assurance to be able to pay it back

My solution:

-buy her rental for 60% market value of the rental (worth 200k, I give her 120k)... She uses 120k to catch up mortgage on her house and for whatever else she wants (she is "only" 90k behind)

- I keep rental payments, I pay property taxes/insurance/maintenance... As a normal landlord

- I give her a buy back option for 140k within 12 months

If she pays me back I earn 20k (140k-120k)

If she does not , purchase option expires and I earn 80k equity

I read a lot of forums against buy with option for the seller to buy back ... But they are all for sellers that reside in their home... Do you see any risk for my case?

@Stephen McKee

This is the post i was talking about...... "one of the smartest guy's on BP"

JIm

0 Votes

Originally posted by @Paolo Ruggieri:

here is the situation

-Seller can't make mortgage payments on her house and is soon going to be foreclosed

- seller owns a rental free and clear

- seller wants a loan... She does not want to sell.. She thinks (hopes) to get $$$ from a new album she is about to market (she is a singer)

Giving her a loan is too risky, as she has no assurance to be able to pay it back

My solution:

-buy her rental for 60% market value of the rental (worth 200k, I give her 120k)... She uses 120k to catch up mortgage on her house and for whatever else she wants (she is "only" 90k behind)

- I keep rental payments, I pay property taxes/insurance/maintenance... As a normal landlord

- I give her a buy back option for 140k within 12 months

If she pays me back I earn 20k (140k-120k)

If she does not , purchase option expires and I earn 80k equity

I read a lot of forums against buy with option for the seller to buy back ... But they are all for sellers that reside in their home... Do you see any risk for my case?

I love this..... one of the reasons I come to this site, tell us more!

Jim

0 Votes

Save your money..... when you see the heard running to the slaughter house It's a good thing to run the other way.

EDUCATION is great, for me it works best in a small groups, working closely with very experienced professionals like a "mentor".

My recommendation is to hold out until you find that. This person won't have a financial stake in your deal, but he will have great pride in showing you how a compitaint investor conducts them self.

I know this is true I have a few people like that in my business that I look up to and a few that look at me the same way.

Good luck

Jim

0 Votes

Originally posted by @Mark Killingsworth:

I am a journeyman electrician, I work for the local phone company. 1 year ago I, purchased a duplex with another investor. I flipped a single family home 3 months ago for another investor. I would like to flip a house on my own, and make a profit not a wage.

I would incurrage you to keep going..... if you can do it one or 2 times you can do it 100 or 200 times. I like working with others to complete projects, my advice is to look at it just like the business you already understand. If you got a huge job where you had to hire specialist to do electrical work you would and just contract it all out. Do the same when it comes to flipping, buy and hold, or what ever type of real estate you want to do.

Jim

0 Votes

Originally posted by @Account Closed:

@Jim Keller

Huh? This shows closed sale 11/9/2015 at $420K https://www.redfin.com/CA/Anaheim/318-Nina-Pl-9280....

Any other details would be helpful.

Thanks for your interest but you can see my post on 11/8 I updated the post with the fact it had sold. Sorry for the confusion.

Jim

0 Votes

Do a good thing for them and they may stay there for years and years. I can just see your post in 5 yrs talking about how you spent $400 on a ramp that made you $30,000 in rent. Remember changing tenants and all the cost and income loss is by far the biggest expences of owning a "C" grade rental property.

Jim

1 Vote

Originally posted by @Dan D.:

So, I do not own RE but want to use my savings of around $200k which is currently sitting in the bank and losing value, to buy some properties to get some decent cash flow.

My friend has been buying SFH's in North Carolina for the past 2 years. He does the taxes (he's a CPA) of the agent/management company that sends him the deals.

Monthly statements and review of his taxes show around 12-13% cap rates. These props are bought 35-40k cash, then rented out for around $750-$800/mo.

My friend and I live in CA; so, using this person(s) in NC is my 1st "out of state" investing choice due to track record and trust. Living in So Cal makes it very difficult to find decent ROI.

Any suggestions for a newbie starting out? Are the above cap rates sufficient? Input appreciate.

Hi Dan

I'm Jim and live in Riverside, Ca. Interestingly enough I'm originally from Huntington Beach. I flip homes throughout Southern California, and always need a short term money to lock up a property or fund construction all this type of stuff.

It may be a good fit for one another, this type of invalvment would pay you off at the sale of the project and give you a much better return than the one stated.

I don't want to come on to strong to you but a couple of small deals like I'm talking about may help you keep a long term rate more stable.

Jim

0 Votes

Originally posted by @Dan D.:

So, I do not own RE but want to use my savings of around $200k which is currently sitting in the bank and losing value, to buy some properties to get some decent cash flow.

My friend has been buying SFH's in North Carolina for the past 2 years. He does the taxes (he's a CPA) of the agent/management company that sends him the deals.

Monthly statements and review of his taxes show around 12-13% cap rates. These props are bought 35-40k cash, then rented out for around $750-$800/mo.

My friend and I live in CA; so, using this person(s) in NC is my 1st "out of state" investing choice due to track record and trust. Living in So Cal makes it very difficult to find decent ROI.

Any suggestions for a newbie starting out? Are the above cap rates sufficient? Input appreciate.

Hi Dan

It may be a good fit for one another, this type of invalvment would pay you off at the sale of the project and give you a much better return than the one stated.

I don't want to come on to strong to you but a couple of small deals like I'm talking about may help you keep a long term rate more stable.

Jim

0 Votes

Lori

I have purchased just under 50% of ARV or as high as 80% but it's a fine line..... none of us need practice doing a deal for free. Don't give your service way only the government can buy for retail price and sell at a loss.

Jim

0 Votes

All Forum Posts by: Jim Keller

Jim Keller has started 18 posts and replied 338 times.

Post: 1K for marketing - How should I spend it?

Post: Buy and give seller buyback option

Post: Buy and give seller buyback option

Post: TURNED AWAY.. Pittsburgh's Joe Calloway investment Deal Training

Post: Expericanced electrician, that wants to flip houses

Post: APPROVED SHORT SALE - Anaheim, CA $420,000 --ARV $510,000

Post: ALS tenant needs a ramp

Post: Beginner with $200k

Post: Beginner with $200k

Post: What % ARV/Asking do you offer?