All Forum Posts by: Sterling Chapman

@Jason Duet https://www.meetup.com/red-stick-reia/events/279442616/

@Reed Starkey I moved on, I can’t deal with shaky communication. They didn’t answer my last two calls...

I have several duplexes and single family houses in balloon loans that I want to refi into 30 year fixed. Tidal Loans is saying they will do this but have mixed reviews and shaky communication. Has anyone ever used them before? Feedback?

@Cameron Lam great story man! I usually don’t read posts that long but it was engaging so I just kept going. I started reading because I got $5+ monthly cash flow in the 1.5 years too so I was curious. Your story is kind of similar to mine but also a little different with the room renting and Air BNB. Congrats on what you got and good luck next year!

@Jaden Adams you seem to be positioning this as you only have two options, pay $120k for an architecture degree or drop out and do real estate. I assure those are not the only two options. You could change your major, you could go to a cheeper school, you could start pursuing real estate and go to school at the same time. Don’t limit yourself. I don’t think you have to have a collage degree to be successful in real estate but I also can’t imagine have a degree in finance or accounting or marketing would hurt you. I know a lot of people on here bash collage but I use my Degree and education all the time in my real estate investing business. Good luck!

@Justin Wotring love it! Congrats on getting started bro!

@Donald Thomas I think I’ve heard @Brandon Turner say on several podcasts that he invests in Aberdeen Washington and that it is an affordable cash flow market for small multi family. Good Luck!

@Payton Reid not sure what your goal is but for me I am looking to grow, expand and maximize my return at this stage in my journey. I understand the safety feeling associated with having zero debt but you are certainly not getting the most out of your money if you are not using leverage. In my option and in the opinion of most financial experts, just because you can use all cash does not mean you should. Let’s use round numbers to analyze. You could buy a $100,000 house for $100,000 cash and rent it for $1000 a month. (For simplicity For this exercise let’s just assume 0 for tax, insurance and other expenses). You would get $12000 a year which is 12% return on your money. Let’s say on the other hand that you take that same $100,000 and put down 5, $20,000 down payments on the 5, $100,000 houses that rent for $1000 a month. Your note would be $450 per house. So your revenue would be $5000 and your expenses would be $2250. Net profit or cash flow of $2750. So now that same $100,000 is earning you $33,000 a year or 33% return on investment instead of the $12,000 a year or 12% you would be getting with all cash. As you can imagine getting 3 times as much on your money can make a pretty significant impact. On that not I would either heloc or cash out refinance to get all of that equity (or dead money) out of your primary residence and let that start working for you are well. Don’t be afraid of paying interest if your return is much higher than you are paying. It’s what banks do, it’s what all big businesses do. If you don’t want to do the work there are plenty of other people that will do it for you. Good luck!

@Geoffrey Fellner I guess it comes down to what type of situation your parents are in. Are they trying to “help you out” if not I’m sure they wouldn’t appreciate getting zero percent on their money for years or selling there property $40k under market. If they can really sell the house for $130k and reinvest those funds somewhere else then the time value of money makes that option way better for them then giving it to you at zero present. And seller financing to you at a much lower then market value isn’t really a great deal from them either. Either way this is not really good for them. If its family so they are trying to help you at their own sacrifice that’s cool but this is not really doing anything for them in either scenario. If they are willing to help you I would say let them sell the house and lend you the money at a decent rate to do some deals but I don’t see this seller Financing being a win win. And don’t get me wrong I love seller financing and half of my rental portfolio is seller financed, I just don’t see it working out great for both of you with these numbers. Good luck! 

@Ben Feder I would say start yesterday! What does your financial situation look like? What type of investing are you trying to do? I’d be happy to answer any questions I could for you about rentals and how to stack up a portfolio of small multi family units without a lot of your own money. If you are looking for advise on Wholesaling or Flipping then I’m probably not your guy. Good luck!