All Forum Posts by: Timothy W.

It's generational psychology. People rent because it's what their family has always done. Renters don't buy houses, they rent 'em.

Wolf (what I'm holding in my photo). I can work alone or in packs. I can be friendly, but don't assume I'm tame.

Reinvest and create contingency funds...for now.

Sonny,
The thing is banks typically don't do the repair work (not in my area at least). I'd market to the investors that buy these foreclosures. Find the REO realtors (the realtors listing the foreclosures for sale) and find out from them who the buyers are. They will be your source for work.

Tim

Matt,
I'm going to tell you a mistake I made investing - I overlooked those closest to me for advice. I went to clubs and meetings for a boatload of techniques while my dad was building an empire of 200+ rental units. When I refocused and learned from my dad, my success did a complete 180 and I am on the track to true financial independence.

Now, not everyone has a family member like I did, but I have a feeling you do. It's a trust fund. Who in your family had the financial intelligence to make the trust fund possible? If he/she is still alive, THAT PERSON is who you should be getting your advice from. If he or she is not alive, who in that family mentored under them? Go to them.

Tim

I should clarify - a refi just to refi the hml, not a cash out. People who cash out then wait to sell can get in trouble. That only works when you intend to keep the property and it will positively cash flow after the cash out.

Tim

Here's what I just did on a rehab. I had a rehab loan to an hml and had planned to sell this sucker. Got a partner who could get this thing financed so I could hang on to it (what I much prefer to do - multi unit prop.). We have the thing refi'd now and I would still be willing to sell, but now I'm not under the gun of an hml. This is what works for me and if you can rent the place out and cover the expenses or cashflow positive, it may work for you as well. The beauty of my situation is I cashflow positively (very well - 1,420 gross rents on a property where total of purchase and rehab cost me less than 40 grand) so that if I do decide to sell, I can hold out for a good offer. If I don't sell this month - darn, another month of rental income. :violin:

FYI - If you want to refi it, do it before you list the property for sale with a realtor. Properties that are listed for sale or were recently listed for sale are a lot harder to refi. I've heard some lenders require not listed for a period of 6 months.

Tim

Hi Rich,
You're not too far from CCIA which is Chicago's largest, longest running and easily most respected club. I have been to their meetings and they are good. They meet at the College of Dupage the third sunday of each month. Jane's been at the club thing for 30 years and does a good job of it. Product is sold at each meeting so be ready for that part, but the networking is good. Nevertheless, starting one within your area that works specifically to your area is a very good idea. You pick up information and leads on deals from people that don't have the time to get out to Glen Ellyn.

"Although I don't really want to spend my time putting one together, I think it is essential to have one in the area. How do I go about getting one started?"

The best way to start one is to just start it. A good friend of mine started with 3 people meeting and it grew to 100 within two years. Just go for it and start it.

"Also, although I have been doing research for a long time, I'm essentially a newbie. Can I still start something without having a huge amount of experience? "

The same aforementioned friend had no experience when he started his. Your purpose as a REIA leader is to get people into the room and get experts in front of them. Find the experts (who have experience, not just something to sell) and that will take care of the experience issue. West Suburban's Landlord Association will probably be your best resource for experts as it relates to rentals in your area. See who they have speak.

Contact me when you decide when to have your first meeting and I'll help you market it through some free sources that help a lot.

Tim

Hello Eric,
Boston - beautiful town for 5 months of the year...lol. Being as it's January - let me guess....gray skies? J/K Everyone should at least visit Boston once. It's an awesome city. There's nothing like walking the streets of history....on your way to Mike's Pastries for the best cannoli in the US. :-)

I just remembered something. A friend of mine creates cashflow in Seattle. He does a version of corporate renting. Short term, furnished, higher rents - the higher rents are enough to flow positive. His site is www.beds4meds.com - short term renting to medical students.