All Forum Posts by: Tom Brooks

I purchased a "custom" whole life policy for my son before he was six months old. It will help pay his way through college if real estate isn't his thing. Alternatively he will have a nice retirement fund and or our grand kids will be taken care of. Thats our "safe money". Its paid off by the time he would finish college. I believe he can tap into up to half of the death benefit under dire medical circumstances. I also think he gets the full pay out if he lives long enough. The tax benefits are also pretty sweet. People have different views with whole life when you are older. It is certainly more expensive. Talk to an agent from the two big mutual companies imo. I am not an agent and this is might not all be accurate.

If they cant manage their personal credit how are they supposed to manage a new business? If they had no credit because they all pay cash for everything I would say maybe. Chapter 13 from medical ok maybe. Here you have 3 people with bad credit... Highly unlikely they all did one of those two things. Its probably worth holding out and marketing the property more. Lowering the rent might be an option to place a Tennant additionally depending on the market conditions.

I'm also a newbie and I live in south jersey. The area is often referred to as cow town or the sticks in my circle of friends because they have a rodeo and its a more rural area. There are some cheap areas in south jersey. I know investors doing well in Salem. I wouldn't touch salem but they are making it work and have done so with owner financing. Be careful.

Some guys pay too much. Don't be that guy. I am a newbie but from what I hear overpaying on your first flip or two is very common. you probably should just bid on more properties.

If the property doesn't cash flow then why don't you look somewhere an hour or two away for a property that will? Banking only only appreciation might not work well for you. Also paying more for a property that wouldn't cash flow to begin with seems counter productive. I get it if you are doing a non profit housing project of some kind. If travel for a cash flowing property is the issue then it might make sense to spend more time looking for one where there is margin for property management or looking into passive ways of investing in real-estate.

From my understanding and I could be wrong, auction and others make fake bids to artificially increase the price of properties. Its worth looking into but that along with some sight unseen shenanigans has always kept me hesitant. Then again you might find a great deal and I could be wrong.

Recommendations are great. Find the most meticulous inspector you can. Long and boring inspections are good. Use anything they find to negotiate :)

Recommendations are where its at. With that being said not everyone is going to tell you who their guy is for a variety of reasons. Talk to managers of contractor supply stores and ask them. If you tell them you had a bad experience they might be more forthcoming. When talking to the contractor mention that so and so recommended them because they were x because you had a bad experience with another contractor who dropped the ball.

Is owner finance or crowd funding an option?

I am a newbie but I have gone through quite a bit of the recommended reads/ listens. Everyone is going to tell you to read rich dad poor dad. It is a great book but really its just motivational. E myth is also great but I don't think it is essential to start. I would recommend reading brandon's book on low or no money down first and then learn how to evaluate a property. My logic is you want to know what financing options are available to you then what is a good buy vs a bad buy. If you are looking to buy something in good shape to rent; I would then recommend you look into the Tennant screening articles on the site. If you are looking to flip or buy a property that needs work then go with J. Scott's books. Podcasts are great for the daily commute. I am not a big fan of many older RE books that were written back in the days where you could get large loans for having a pulse. I hope that is helpful.