All Forum Posts by: Stephen Franco

PM me or call 570. 237.0 124 I can help you, first of all. Don't just give money to quote a guy. Second of all if you are going to backup flip analyze the numbers properly and make sure there's plenty of room of the deal. Third of all, make sure you are first position lean, and if your state allows it get a confession of judgment and a deed in lieu signed so there's no foreclosure process. Fourth, only put the money out on a draw system has work is completed

I haven't had a problem wholesaling in any a state yet, but I do know that many states have actual laws saying you must be a licensed Realtor to do real estate. That's why we call ourselves business brokers, consultants, advisors, or other terms that allow us to show up on a HUD statement or to get paid, without necessarily having engaged in dealing real estate without a license. In some places such as Florida that's a lot harder to do with the deal is going through the MLS, but there are still some ways.

Most of my deals have been Pennsylvania, and frankly no one has ever blink an eye

Give the title age of contract of sale in the assignment document in very few ask any other questions. I'll just follow what they are instructed to do, if you're bored of Realtors gets involved that's an open question I guess depending  on your state laws and whose lawyer is better, but the chances of them finding out is really not that high

for me, in my rather high cap rate market of northeastern Pennsylvania, I can easily demonstrate 15 to 20% cash on cash or cap rate after 10% maintenance 10% management and 10% vacancy. Single families are more of the 10 12% return rate but still a substantially good investment.

My calculations all fall of the same formula. Rent 

- 10% Management

10% maintenance 

10% vacancy 

- all hard costs paid by Landlord

=not

I take whatever I want for monthly profits a $75 a month and subtract that out per door

and take the rest of it and determine what it can afford six and a half percent 20 year amortization loan. 

Then, depending on the value of the investment...appreciation..etc that is either the highest price I will pay for it when it's all finished and said and done, or that plus the 20% down payment is would have to costwhen it's finished. 

- out all of my rehab costs and other things, and that's my maximal offer

please message me. Do not withdraw from the 401 K. Switch it into a self-directed account and then you can purchase the property with self directed. Or you can borrow back half of the self directed and use it for other personal investment as long as you pay in interest rate to yourself correct account. And then you can use the other half to invest on an arms length retirement fund basis. There's no reason to pay the huge penalty withdrawal when self-directed accounts are an option

my experience is a little bit different.

First of all, I am happy to write mortgages on any private lender that wishes to loan at 10% interest.

I typically offer 15% annual interest rate to private lenders on flips and 10% if they're back and buy and hold project.

I also offer 10% returns to equity partners on long-term buy and hold rentals where we share ownership.

My buy and hold investors he returns of 15 to 24%. And after getting all their money back from a refinancing lender, are very often but still profiting approximately $100 per door.

welcome :-) well I work nationally, my focus is in the high cap rate low risk area of Scranton / northeastern Pennsylvania. PM me, and let's chat about opportunities

Personally, i almost never (only if appreciation is HUGE and virtually guaranteed) use appraised or sales comps for valuing income or rentals.  Personally, I can't eat the increased equity...so it doesn't count.  I may take a lower cash flow in a great area (which my home market is not a hugely appreciating area) but I won't let sales comps push me out of solid cash flow.  O

first of all, where are you getting that loan? I'd like one too :-)

Second of all I would do cap rate as your rent - your taxes insurance or whatever hard cost you pay... - your maintenance vacancy in management expectations.... that net number / sales or purchase price for total investment that's your cap rate

The math I apply, and what seems to generate income on just about every rental I do, is as follows:

rent 

- all hard costs paid by Landlord. That means taxes water sewer whatever another

- is a 10% management, 10% vacancy, 10% maintenance.

They can tell you their maintenance last year was 0 but on average I find 10% to a pretty safe

And subtract out whatever personal profit, for me at $75 per door, that I want to make sure I put in my pocket every single month without fail.

Even use a mortgage calculator app to calculate at six and a half percent 20 years and it will tell me how much of a mortgage the property can afford. 

From there, I pretty much know my value.  With or without extra down payment money . 

In my area of northeastern Pennsylvania...I can usually by 6 and finished property, or buy a finished property, for a tour about or sometimes even less than the mortgage value. 

Meaning when all is said and done I very often don't have any money in a property and it still throwing you $75 a month per door

I have professional management and maintenance, so as a rule, overall, I don't need to get terribly involved in my rentals

in Pennsylvania, you are able to manage property that you own. Which means if your parents make you one tenth of 1% of the company, instantly urine owner. Or, they can hire you as an employee. In reality, no one in Pennsylvania or lease my area Pennsylvania really checked into it, it mostly comes out if the landlord that is your parents decide to make an issue out of it. The other thing in Pennsylvania is what they defined as a licensable activity, is basically handling the Lisa or the money. If the money is deposited in your parents account, and your parents sign the lease is, in Pennsylvania that would not be a problem