All Forum Posts by: Thomas Oliver

Justin congrats. I don't totally agree with your numbers. I am also a investor in Ms. I'm farther south. I live in Summit. We are in a state of its own. What most people don't realize is you have to buy in my area at around 30-40K to get Cash flow with a 15 yr AMR. The advantage we have is our little local finace in the LLC name. Not show it on our personal credit. I would like to know who your insurance is through. I'm paying 1000-1500 a yr for ins.

Also with the LLC. If you use small banks they don't show the loans on your personal credit. So that pesky debt to income don't get in the way as much. I am in my first yr of investing so I am still learning. Also the tax deductions are way better.

Good luck. Mine was worried about the debt the uncertainty. Here is how I explained it to her and anyone else that ask. We have been one missed check away from bankruptcy for cars trucks boats vacations u name it. We never batted a eye about it. Why worry about being in debt for something that's making us money? Even if we fail were not going to die. We just back up and punt.

At the end of the day it depends on the class of people your renting to.

Steve B. We complain about the ultra Rich inside trading and doing under the table deals. What is the difference in us doing the same thing? If you are told about a deal that you shouldn't know about. Are you going to capitalize on it? Or pass up millions cause it's not morally right or breaking the rules a little. You can't break rules. You can bend them and find loop holes. Everyone does. Tax season for instance. I am by no means saying being a lying cheat is good. All I am truly trying to say is don't throw rocks in a glass house.

Welcome. I am new to the game also.

I was just having this discussion with a friend of mine. I was thinking more along the lines of a educated guess. Then again once you have done it enough you already know what it will sell for.

Thank you for making this post. I am the same way. My wife gets sick of hearing about it. I have been this way as long as I can remember. Trying to figure out how to make a dollar. I can talk about other things. The problem is I don't want to. Lol. I read a article recently that said The wealthy never take a day off or a vacation from making money. There mind never stops. It might take breaks but never stops.

Please excuse the grammar. It's not my strong suit. This has been a awesome read. Congrats on the home run deal. I live in Ms. The rental market is strong in my area. I recently purchased a quadplex and 2 houses. 1200 sq ft each with a total of 8 acres of land. Valued at 475K. Purchase price was 176K with 15K down. The loan terms are 15yr ARM 4.2% adjust to current rate in 10Yrs. I also got a 10K line of credit 3 weeks after I signed closing papers. I closed on 2-20-15. These were a for closer I bought and fin from the same bank. It was all low income property. So far 4 weeks after closing I have 5 ready to rent with 3 rented The rehab to get it all ready is costing me around 20 K So in all out of pocket is 40K. With 20k of that borrowed and on credit card. Now for my numbers. 750 per unit X6=4500 per month. The monthly note ins and taxes is 2250.00. That puts me at 2250.00 left. Take 50% of that to cover working expense and start up cost bills. That leaves 1125.00 to show as cash flow to stockpile and get approval on another loan. The best part of this whole deal is the equity that I will have. I am looking a setting up a line of credit for 100k in about 6 months. So I can pay cash for other property's then borrow against them to pay back the line of credit. I will be able to gain property's with no money down. I am also building on property I own. The cost of building and what our rent market is. Makes profiting from the new duplexes impossible. All the new units will do is pay the bills. I am ok with this due to I have a job I pay my bills with. I am building at $63.00 per living sq ft. Land included. Building itself is 60.00sq ft. Rental income from these is 1600.00 a month. The note ins and taxes is 1400. My loans on these are 15yr AMR refi every 5yrs for current rates. I turned in a bid for 164k to build my cost was 120K going to be 115k on the next. I learned a few things on the first. I borrowed 130k. So I have 10-15k left to stock pile. I'm hoping by my 5th I can build out of pocket then borrow against so the debt to income doesn't get in the way. Also the left over will pay for concrete roads and development expenses. I am planning on building a total of 28 duplexes. I am also going to purchase every good deal I come across. That I can fund. I want a 100 property's in 5 yrs. my plan is 20 by the end of this yr. If any part of my plan is wrong please tell me. I am not afraid of the debt. I have been eyeball deep for pleaser. Why not be in debt for something that's going to make me money? Thanks Thomas Oliver

I have 3 small banks I deal with. I am getting 15yr AMR At 4.2-5.2% each bank is different. With a 5 yr ballon. None of these 3 banks report to the credit reports. FOR COMMERCIAL loans. They are all putting the loans in my LLC name. I don't understand why everyone loves these 20-30yr loans. I'd rather take less cash in the beginning and have it paid off early.