All Forum Posts by: Anthony Johnson

Robyn Thompson ( speaker and "Queen of  Rehab") would say $1,000 a month for 70 months on her no interest fast pay offers.   That is what I call the middle way, do the annual payments and find a tad more  breathing room.   Unless you have an abyss for the operating account, always make sure a property can pay for itself.   You do not know what the future holds.    

I life SFH the best for a few reasons. First, they are easy to understand, hard to make a mistake, and you can repeat it to infinity. The biggest factor in my criteria is exit strategy and the homes I own are all what I call "pretty houses" and as a RE Broker I know I could sell any of them in less than 30 days with multiple offers. I like the automatic $300-$600 net cash flow each one throws off and I can buy them seller finance all the time where I live. So, ease of purchase, easy to model, mistake free, and exit strategy. Also, I am a healthy guy, and I do not personally recommend anyone live in apartments or condos any more since the neighbors wifi signal will degrade your health. So I personally believe in a home being the healthy choice. Multifam/Apts is no longer an option if you are a conscious/awake person, and if you have children or are pregnant, get out today, you are causing permanent damage to you children, being exposed to sometimes dozens of wifi signals from un-thoughtful neighbors who do not know how to turn them off. When you are in a home, look at your smart phone as it searches for wifi you will see typically 10+ full bars hitting you. re: World Health Organization report of cell and wifi related to class b carcinogen.

Thank you for sharing.   You added to my knowledge base.   I am a licensed Broker and  know that to succeed in this business you have to be transparent and run it like a true business.   These unlicensed wholesalers and property managers, would do better to get a license, and really learn this business.   You do not need a license to be an investor as we know, but I would think that is for the sharp business person, if you are month to month, running with a lot of  financial "need" get a license and an education.  

Assets-Liabilities, then subtract  the depreciation that the IRS will recapture on you if you sell.     So, if you have 1m in  net worth, and say about 20 years of depreciation to recapture, it could hold you back down big time.    There are ways around this, but the majority of folks with  10-15 houses will just sell and not hold the notes.   Namaste. 

If you want to sign Far Bar as is contracts with a 60 day closing and then agree to do a 45 day extension addendum while you are waiting on probate, then you could be aggressive that way, but I would just let it go, and remind them weekly you are interested. In the meantime can my GC pop by and take a quick look at it? And I have my GC do the mini inspection and tell me the age of roof and ac etc, so I am ready to sign contracts as soon as they call me. So I am waiting on the call right now, a great sfr block 65k MLS list and it fell out of contract with the last buyer, so I had emailed the listing agent to let me know if it goes back to Active, and I always do the emails with a header that says OFFER for Property....etc..... because I was a busy Realtor and I know when the deal dies, you go in your inbox and look for that guy who emailed me weeks ago, I get more deals that way by the way. Anyways so I called the LA yesterday and he is still telling me two months, so I say to him when the attorney says yes, we will all meet and sign, so I can get them at the table face to face and sign that night, So I am being aggressive without contracts on mine.

I am waiting on one right now,  nothing to do but wait, have the sellers sign  45 day extensions every 45.  I am doing the same right now, nothing you can do.  Do not pass on other opportunities, consider this lost until they call you with clear title.

Empty at closing is the only way I would buy. In fact it is part of my inflexible "criteria". As Investors we want the highest rate of return. Let us assume it us currently rented at $1,000. In every situation like this the market is a little higher. So I would prefer to go in an do a wall to wall rehab including kitchen and go for the $1395 renter who wants perfect. So in other words, I like to "set records" with my rents for my market. Do the tenants stay and are they happy, the happiest. I do this formula more and more now. The extra $12,000 I spend on the rehab nets me another $200-400 in this $1000 price range and that is an extra 30% return above the turn key investor. Or non buy/rehab/hold investor, or the guy that just buys/holds without the rehab. I specialize in pretty houses in Pasco/Pinellas $675-$2500 rent range and this works on them all. So to recap, in my pretty house model, doing a wall to wall rehab, all floors, kitchen baths, walls will allow me to set a record on the rents, and when it comes time to advertise I attract the tenant with the higher credit/income and I would like to add that in March I closed on a SFR in Embassy Hills Port Richey for $51,000 A 2/1/1, 1100 SF. Right off the MLS. So it would have rented for 700-750 since it was super dated and ugly. I did a $13,000 rehab, opened up one porch to the house by taking out sliders and wall to wall porcelain tile, kitchen, baths, ceilings, all walls baseboards, anyways I am getting $895 and the list of applications has several 700+ credit scores. The tenant i chose pays the rent one month early every month they are so happy. So, for me they have to be empty, I rehab them all, if I do not have the cash at purchase, then at the first check out that I can do a rehab I do it and go for the record high rent. On that $51,000 purchase I did 100% financing, 6% 20 yrs private and it cash flows $409.00 and that is net before maintenance. I do not factor vacancies ever, I manage myself and it is a non factor. I also received a $1200 commission when I bought it. I approach the private lenders with this formula, they do 100% financing, I rehab after closing., we both win as I get a new house with a cherry tenant, and they get the equity position and the beautiful home. I actually learned this by accident, I just noticed the rehabbed new inside houses got us better tenants and the maintenance calls are almost non existent and they stay forever, seriously, they have nowhere to go when the house is new and even though we are priced at the high end, it is still a win win for all. Namaste.

you have to message me, this site does not allow me to give your a phone number

I am in Palm Harbor and I use a maintenance company   for ongoing maintenance, and they do roofs, all rehab projects, I have been with them since 2013 when we did a full rehab in Dunedin.  They take calls 24/7 for the rentals, and they can do rehabs with a roofers license, and they are good and fast.    Even ran sandbags out to a rental with no notice.   You have to have these guys on your team Pasco and Pinellas.    

Great article, thank your for the education.   I like the extra dimension this would add to my portfolio.   I would do this before I stuck some money in  my Scottrade Account.