All Forum Posts by: Steven G.

Does  anyone have a good (recommended) book on subdividing land? II need to know exactly how its done, etc.

This one looks like it has potential - http://www.amazon.com/Investing-Land-Selling-Subdividing-Developing/dp/0974042307

One note about me - I am very experienced in real estate (I have bought hundreds & hundreds of houses, small apartment buildings, etc) - but this is one area of REI I don't know a ton about. I am not going to do a 100 lot development or anything like that right away, but I might someday. For now I'm looking into subdividing a large lot or two into smaller lots.

Thanks!

I hear you, and agree. But that does not answer my question. =) The question was for people who know how to service their own mortgages, or for professional loan servicers. 

- Can anyone recommend a good website/company for taking mortgage payments online, for owner financed notes? I'd prefer only do check or debit card payments.
- I'd also like to hear what other investors do too.

Please do not recommend that I use Paypal, or my own bank (I've been there, done that, and prefer not to go that route as of now). ;) 

Right now - I take online RENTAL payments for my different LLCs that rent real estate, via rentpayment.com, and it works great. But they *cannot* take payments for my mortgages/notes, which sucks. Its automated, I can run reports and the money is wired directly to the right bank account for the correct LLC. They take debit cards & checks for a very minimal fee to me (its free to the tenant), but ... at the renter's expense they can pay with a credit card over the phone, pay with a credit card online OR even do something like Western Union. You can actually customize the different ways the tenants pay you, which is cool. I'm hoping to find anything remotely similar, but for mortgages.

Yep, that is very accurate. I have been there / done that myself.

I think the hardest part of making your first million...is when you have a standard, 40-hour a week, middle class job and you have a wife and/or kids a home. In that situation, you have to work around your job's hours on the weekends and evenings building passive income...say with real estate or a small business...to build yourself up enough cashflow to replace your monthly (job) income. That can be hard! Most folks don't realize you'll need to work 60+ hour weeks for a while, sometimes years, and have a very supportive family to get where you need to go. 

Once you detach from that job, and you are financially free...aka you are living off the income from your assets AND you can set your own schedule each day...that's when things get moving faster. By having a full 40+ hours a week to focus on your business, real estate, etc...you begin making a lot more earned income, to in turn put into passive investments which generates more passive income, and before you know it you're a millionaire. 

And then bam, you do it a 2nd time - but a lot faster than the first time.
 

That's the basic reason why the rich get richer, despite the fact the economy is good or bad, simply because they have lots of assets that consistently generate income...and they live on way less than they earn. They cannot get layed off, fired, etc from their job - as they own their own job. And when you live off just say 10% of what you make...damn...you cannot do anything but get richer, irregardless of economic ups & downs (with exception to maybe the great depression).

No, no, no. Stay in California. Don't leave your friends & family, to invest in Texas, especially when you have NO experience and your only 18. No way, no how. I am from Texas and its a great buy & hold state, to the most part, but we do have higher property taxes here vs in California. Plus the rehab opportunities are far greater in California, because property values skyrocket there ... when they stay rather stable here in Texas.

Get your yourself a real estate license, and start selling houses for other people. Either do insurance during the week & real estate part-time OR do real-estate full-time. Then buy yourself a few leveraged rentals, and start doing rehabs with borrowed money (try to get 1-5 year bank loan at 6-8% interest, from a local community bank, not a hard money loan if you can avoid it). Bam...you will make money.

You might find in just 2-3 rehabs, you make your entire year's salary as a real estate or insurance agent.

But how do you buy right? Where do you buy in your area? And how do you run comps? And how do you negotiate a deal? That's what you learn by becoming a real estate agent first.

You cannot build a castle without a solid foundation. Build a castle - not a house of cards. And you WILL be a multi-millionaire, sooner than later.

Its a great way to go. Many real estate agents/brokers, are also investors too. I bet 1/3 of the people I wholesale properties to (note I am an investor too, I do not just wholesale, like some folks) are actually real estate agents & brokers...they make the best customers for me as they know exactly what they're buying. Anyway...yes, go for it. 

No - I do not have an umbrella policy through them and they do not offer them as part of their main insurance program if I recall correctly (you may need to call them and ask, for clarification).

I can tell you that NREIG offers up to $2mm in liability per property/policy, and that's a pretty sizeable amount of coverage. What I would recommend is (a) get $2mm in coverage per policy, and (b) put all your properties in an LLC and not your name. When the value of the assets [value of the houses] gets close to $2mm, then create a new LLC and start putting houses in it. Just rinse & repeat after that.

One note - the above formula should work - but you could even protect your assets even better by lowering the ratio of house values per LLC ($500k in houses, or $1mm in houses per LLC) OR getting a series LLC if your state offers that.

I'd look on Loopnet.com, Bizbuysell.com, Cityfeet.com, the commercial listings on your local MLS and on Craigslist (I've seen them on there believe it or not); also, yes, send advertisements/mailers to the owners directly...it cannot hurt at all. Good luck

Well...get yourself a real estate license (you can probably take a course online, and finish it in a few weeks or less depending on your state)...and then go to work for a brokerage where they pay for the leads / advertising, so that you'll get guaranteed business from day one. You'll pay a higher % of your commission at a full-service / name brand brokerage vs some other options, but you'll want the support structure when you are starting out. Anyway...take the $$$ from your job and start buying rentals, and also do some rehabs. You will do fine.

One thing I'd recommend is - brush up on your sales skills, if you are not already a good salesman. You have to be an ACE at sales and dealing with people, to make the most money in real estate. Also, you need to be motivated and hungry... Good luck!