All Forum Posts by: Terry Madden

Tough position to be in with family. I try and keep a distance from mine when it comes to investing/business as emotions tend to be a big part of decision making, etc. 

My advice to you is to have an operating agreement drawn up by a lawyer where you retain the equity you put into the deal when you purchased the property. So if you put 20% down, you retain 20% of the home until it's sold, etc. You can split the remaining 80% equity 50/50 as long as you felt the splits on all renovation costs/sweat equity are 50/50. In my opinion, this is the most fair way to structure the deal since there were a few moving parts after you closed on the property.

Good luck my man!

Hi All, 

For the past decade, I've been investing in long term rentals in various areas of NJ & PA. 

I recently closed on my first short-term rental property located on the Jersey shore. So far, I've had a lot of success with getting the place rented in a short period of time. Aribnb has been the primary driver in addition to a realtor I'm working with in getting tenants.

Does it make sense to also have it listed on VRBO, Booking, etc.? Is there that much of an audience that looks to rent homes like these not looking on Airbnb? I feel like Airbnb is the king of the short-term vacation rentals, but I could be way off and selling myself short by not having them posted on the other sites. My reason for not posting on these sites is due to the fees they charge. With Airbnb, most of the fees are incurred by the renter, not the owner (I could also be wrong here).

Any insight/advice is greatly appreciated!

Thanks, 

Terry

Hi Nathan, 

I'm working on my first deal in PA and so far it's been great. I have only invested in NJ up until this point but am pretty impressed with how smooth the process has been (much different than NJ). I'm in the process of closing on the home and will be making substantial cash-flow once I place tenants. Depending on what you are looking to do and what location in PA you are looking to invest in can determine if it's a good deal or not. There are a lot of hot areas in PA that still allow you to obtain the property with conventional numbers that will allow a good return. Most states do not allow that anymore. Taxes are an investor's dream in PA! Good luck!

Hi All, 

I was also contacted by this company. The person who reached out to me refuses to let me interact with the broker directly. In addition, during our conversations, my initial point of contact's email has changed. In these circumstances, I'm going to trust my gut instincts and probably not get involved. They had assured me they use a title agency that holds the money in escrow, but filling out an application with this company with my social security number and other vital info is what scares me the most. They could be luring me in for that info and then hack me. 

Can anyone refer a reputable funding company they have used in the past?

Buying all cash to obtain the property is ideal. You eliminate most if not all of your competition and can negotiate better terms with the seller.  Once closed, cashout-refi.

"any more brain busters?" - Billy Madison 

I agree with the above responses, but I also think you should know your tenants well enough and what their financial situation might be. I just renewed a lease for two years on tenants that I've had for two years and told them I was raising the rent an additional $50 per month (well below 3% increase) and gave them the floor to object. They agreed to it and felt it was very fair, especially for another two-year lease agreement. 

Personally, I feel it's a case by case decision to make. 

Good luck!

@Erin Dorsey Robinson

Making a million dollars in real estate is 100% possible. The fastest way, which may be a gamble, is to buy and flip. This is risky, especially in the current market we are in. Make sure you have a ton of cash to burn as well. 

Depending on what your goals are long term, you may want to buy and hold properties and let other people (your tenants) pay down your mortgage, provide you with cash flow, and paying off the principal. 

If you are seeking to make $1MM quickly, I'd suggest not doing it in real estate, but researching a company whose stock is about to explode and buy as many shares as you can. Right now, biotech & technology companies are the way to go in my opinion. 

Good luck!

Hi BP Community, 

Can anyone suggest a private lending company that they've worked with in the past?

I'm looking to obtain a loan up to $400K - $500K.

Any suggestions are greatly appreciated. 

Thanks!

Terry

You make a very valid point on this topic. I really feel, depending on how much you are bringing in with the cash flow from your assets and what you are bringing home with your business/job/etc., (worth a million +) dictates if you can live the "millionaire" lifestyle, obviously. 

But it also has to do with where you are living in the country. A million dollars in the middle of the country (not putting these areas down by any means, but the cost of living is significantly cheaper) verse living in areas like NY, NJ, & CA are almost night and day. 

I always love going on Realtor or Zillow and comparing what I pay for a 1 bedroom condo in North Jersey and then see a gorgeous 3 bedroom home in GA for example with property going for the same price.

It's all relevant I guess, but if you are able to live in an area that is significantly less than what you are bringing in, then that's a home run!

I just crossed the same threshold you crossed with regard to asset ownership value and feel the same way, so it's not just you, lol!

My advice, acquire more assets!

Good luck!

Thank you Diana.