All Forum Posts by: Tony Gazetti

Yeah I'm familiar with that approach. I guess back to one of my original questions, does anyone have any experience with that? If I were to get the additional money from a friend, how do I compensate them for it? Interest? Flat rate? And is it based on how long I have their money? And what is a reasonable amount of money to pay them to use it? 

So, is there any particular reason the method I mentioned in my OP is not a viable option?

Thanks for the advice James! What method do/have you used to finance your rentals? 

I'm looking to buy and hold. I currently make a pretty good living as a car salesman, so my goal is to ride the wave while the industry is up and dump all of my money into rentals so that in 10ish years I can ramp up and do it as my primary job. 

Hey all, 

I'm looking for some advice, or possibly some validation if I'm already on the right track. I currently have about $50k saved, and am looking for my first rental property. I have access to the MLS, and when I find a deal I want to be ready. My question is, if I find a house for $75k-$100k that's a good deal, I assume I'll be offering an amount substantially below asking price, and therefore would need to be able to offer cash for the purchase. What is the best way to obtain the extra $25k-$50k? I have some coworkers that might be able to bridge the gap but I don't want a partner just for the money. My thought is that I could borrow the money to close on the deal, then get a mortgage to get my money back out if it and to pay back whoever backs the rest. Is that a good plan? If so, how much do I pay the people who loan the rest of the money and how do I go about that?

Thank you! 

Is there an archive for old webinars? I really wanted to take part in the one tonight on investing while working a full time job, but I had to work late! Go figure!

@Steve Vaughan Thank you for your reply! I will be contracting out the majority of the work - I do have a full time job selling cars, so my free time is pretty limited. Owning a large enough rental portfolio to quit my sales job is the ultimate end goal, and I'm aiming for the 5-10 year mark to make that transition. I figured this would be the best way to get a substantial savings accumulated before transitioning to buy and hold. 

That's my main concern - if the house needs repairs and is unbankable, how do I flip it? Is that the point at which I would need other investors? This is the unknown that's kind of stopping me in my tracks. If I were looking at buy and hold now, I could jump in by finding a deal on a decent house and just getting conventional financing on it, but cash accumulates so slowly that way.

@Richard Ball I appreciate the input! I actually did drive through the neighborhood last week and found an EXTREMELY run down house - not sure if it's vacant, but according to Google Street View, it's been in the same condition for at least a couple years. One question I have, though, is that if the house is in fact vacant, how to I find out who/where to mail the letter to?

Hello all,

I'm new to the game, and have been listening to the podcast and doing online research to educate myself enough to get started. I'm very concerned with getting analysis paralysis, so I make sure to at least listen to a podcast every day.

I'm actually posting because I have three questions

1) How do you buy a "great deal" without cash - i.e., with conventional financing? Is that possible? Is it possible but difficult? If it's not possible or highly unlikely, what is the next best option?

I have my eye on a particular neighborhood in Clarkston, MI, an upper middle class suburb of Detroit. It's a lower priced neighborhood for the city, but has nice SFHs and from what I can tell, several houses that could have flip potential. Most of the houses I would be looking at would be in the $100k-$175k range. I have about $45k saved, so I have money for closing costs and repairs, but I'm just wondering if it's even possible to find a really good deal and take advantage of it given the slower speed of conventional financing.

2) One possible plan I have is to start a direct mail campaign to that neighborhood. My thought is that it would be a good way to find a good deal for my first flip, and if it generated more leads than I could handle, I can get into wholesaling as well. I guess I'm just looking for some validation on that one - is that a feasible plan? Also, any resources/articles you can provide with advice on what kind of marketing to send out?

3) Lastly, I'm thinking a good first step in the whole process would be to find and meet with an attorney. If I end up going the marketing and wholesaling route, I want to make sure I'm doing everything the right way. 

FYI, my wife is a newer real estate agent which means we have access to the MLS, so if scouring that is a smarter way to go, that's an option as well. I appreciate any input from anyone who knows more than I do! Which is everyone! Thanks everyone for your time!

@Keri Middaugh  Thank you for the advice! Are there any particular REIAs you would recommend? I haven't been able to find any locally - Macomb was the closest one I found.