All Forum Posts by: Pat Martin

Sounds like the properties were cross collateralized. I.e. One loan 3 separate properties. In this case you would be buying all 3 properties included on the trust deed.

It's easy to say hold everything when you have a net worth of 500m. Flipping can be very profitable and give you huge short term returns which could allow you to buy and hold more.

Don't do it. The risk is he's using your credit. If he misses those 3 payments it's your credit that's hit.

I've got a story to add here. There was a house that was built in 2012 but not completed. Mostly finished except floors, countertops, sinks, faucets and landscaping. About 65k of work to complete the house. I'm not sure what happened to the owner but he moved away and never finished. He put the house on the market for 350k as is which is about what's it's worth when complete. It didn't sell. Several months later he lowered price to 270k no bites. He hired realtor and listed for 215k. Sat for 49 days or so when I found it. I offered 145k he declined. I followed up with realtor and told her that I was still interested. She told me there was another offer so I raised mine to 160k cash. He accepted. He had other deals fall through that had finance contingencies. We had a cash contract close in 5 days. Well another realtor came along and said their buyer loved the house and wanted to live in it. They put it under contract to buy from me for 225k as is. So the seller was fed up with this house and wanted out. Did I screw him over? Did the realtor save the day and get the seller the most possible for his home? Sometimes people have different perspectives and see opportunity to add value or make money on a deal. James Wise I'm not even sure how you can be a real estate investor unless you do exactly what the OP stated and buy at a discount. I've got lots of properties I can sell you for 100% of what they are worth.(worth in my eyes)

Come on fellas no more spitting contest!  I'm sorry Jamie, I have to disagree with your statement as well.  Obviously a free and clear property will cash flow better than a leveraged one but to say that you cant make money if you don't put at least 50% down is inaccurate to say the least.  

Is that $200 per month capex?

The reality is that every market is different. But if you can buy a rental and be positive $100 per month with zero out of pocket after all expenses, you are doing just fine. That along with buying at 70 cents on the dollar will give you decent cash flow, equity, and principal pay down. Not to mention the appreciation and depreciation.

Hey Joel

Congrats on you 4- plex!  Post some pictures. I went to Michigan Tech and was one year away from an engineering degree when I decided it wasn't for me. I transferred to Northern Michigan and got a degree in finance. Shortly there after I got sick of the 6 months of winter and moved south to TN.  Loving it. I'm focused on doing flips and single family rentals at the moment. You've got a bright future and are headed in the right direction especially for your age. What's your plan next?

@Account Closed

When I saw the .1% that was my exact thought.  Are you kidding me to think thats statistically significant???

Or you can get get a commercial. My bank will do 80-85% of appraised value at 5% 20 yr am.