All Forum Posts by: Stan T.

Oh, and here's the 'kicker' - you're managing this remotely from overseas

OK people, let's talk a little about due diligence, "turn-key" style...

So, you've got the seller's 'pro-forma', the house is new construction in a developing subdivision of the DFW metroplex, you've been pre-qualified for financing with excellent credit... you're ready to pull the trigger, but want to make certain everything checks out before you go under contract.

...What's your next move?...

Would love to hear about your journeys to $1M net worth in real-estate and oil & as investing.

Thanks for the replies.

Looking to finance, possibly with a solid down payment in the 2-4 unit arena.

Have you guys ever purchased a property "sight-unseen" before? Any advice on managing your due diligence on this type of deal?

Who's had experience with these types of deals?

Can anybody recommend a company that deals with these types of properties?

- Stan

Wondering if anybody has had the chance to work with David Campbell of Hassle-Free Cash-Flow Investments. His concise and informative ebook struck a chord with me, as it is exactly the investment philosophy I am looking to get into the business with, and I stumbled upon it here on BiggerPockets!

He offers a phone consultation explaining his construction/development business, investment strategy, and his current project in Texas. The basics of the deal are this: Newly constructed, fully-managed, $130,000 4 BR-2 Bath properties renting for $1300/month in DFW, TX. He offers to personally finance 15% of the purchase-price, leaving you with 5% down payment and a meager, modest ~$50 positive monthly cash-flow, on paper. If you stayed with conventional 20% down loan, and his same figures, it looks like you could cash flow around $100-150/month.

Right now I’m looking to get into ~$250k of solid turn-key cash-flow property. This deal seems attractive, and wanted to know if anyone has experience doing business with him.

Thanks for all the input.

Actually, when I say I'm looking for growth, what I mean is cash-flow and Equity Build-up. Sure, your tenant can pay off your mortgage DEBT. But, given the same Great Deal, with a more aggressively structured loan-scheme (and perhaps a little more down) you can substantially decrease your overall interest-debt, pay-off your property faster, and the difference in your rate of equity build-up is staggering. Isn't that what we're after anyways??

In other news, I've gotten some positive responses from a few lending institutions, and a couple loan applications to fill-out. Also have my sights on a few property management companies that I will continue to network with. Outlook seems promising.

I'll be interested to hear any responses..

@Marco Santarelli
@Ali Boone
@Chris Music

KC is my hometown :)

Basically it is the most sensible place for me to get my feet wet. There are some up-and-coming yet classic neighborhoods on the MO side where property is CHEAP and returns are GOOD. My family is there as well, and I will return to visit a few to several times a year.

Any tips on looking for a “good” broker/banker for attaining a mortgage? A good friend’s father is seasoned in RE in Minneapolis, so I’ll pick his brain along with my employer’s credit union. In your experience, do use big banks, local brokers, or just shop around until you find the BEST deal rates. Right now, I’m simply looking to get sized up, and see HOW MUCH I can qualify for, and at WHAT RATES.

ps – Marco, I liked your article, especially “10. Leverage Your Investment Capital.…As long as you have positive cash-flow and your tenants are paying off your mortgage for you, it would be foolish not to borrow as much as possible to buy more income property.” This is profoundly powerful, but I wonder: Suppose you have the Ability to pay-off a property Quickly, would you still rather take-on a much larger and longer-term debt for a few hundred extra dollars per month?..

Thanks for the replies.

Working abroad with a high-paying job in the oilfield. Stashing significant capital. Looking to invest near Kansas City area. - the catch? - after we close the Great Deal, operation needs to be pretty much 100% hands-off while I'm overseas.

My pockets are willingly deep - meaning I can make a substantial initial payment AND don't require cash flow (for my survival). I'm looking for growth, growth, growth, and investment cash-flow ;)

Just need an action plan:
1st Step: Qualify for financing to see exactly where I stand, and determine the kind of leverage (if any) I would be willing to put into a deal.


What do you think? - thoughts, opinions, advice all appreciated.