All Forum Posts by: Zach Sikes

Welcome Michael!

If you continue to browse the forums and read on the site, you discover there is a wealth of information here.

That sounds like a heck of deal, congrats on getting done.

Josh - Thanks for leaving it up. It simply reinforces that you can't let a seller stay in the home after closing!

To the OP - You really need a reality check. While this guy was trying to help you, you are stabbing him in the back. Obviously the house is not woth $3 million if it is in the condition that you say it is. AND like has been said here before, you DO NOT OWN anything in the house that is attached. The chandelier is attached. How could it possibly hang and have power if it wasn't?

It would be very tough to buy an REO before it is listed by talking to the listing agent. If he/she has not yet listed the property, then there is no compensation agreement for him/her. Basically, until it gets listed, the listing agent won't get paid if a bank accepts an offer.

@Dojo and @Daniel -

I love you guys' philosophy. I like to have very little debt if any. I don't mind being moderately leveraged, as long as I am not taking any cash out and paying down debt as fast as possible.

I've personally seen what too much debt can do, but the flip side is that all cash makes the acquisition of property much slower.

It only takes a few close hits on roof to competely total it out. This same problem happened to me on a deal I was brokering. We had a massive hail storm come through and totaled the roof and destroyed skylights.

The best option is to try to get a reduction in price according to the damage, so try to get documentation that the roof is totalled. Usually a roofing contractor will provide an inspection and paperwork for free, so take that to the bank. If you wait on the bank to repair the damage, it could greatly delay the closing and keep you tied up for longer. However, if your financing requires that the roof is solid, then you might need to rethink that strategy.

Thanks Rob -

I think having an exit strategy in place would greatly reduce the risk, especially the first couple of go arounds.

Thanks Steve -

I think the only way I'd take on negative cash flow is multi family units with some not rented out.

Sounds like pretty good advice Steve.

Hahaha not many people reference Miami OK. I've got it now.

@ Financeexaminer,

That seems to be about the most sound advice I've gotten so far.

1. - Seems like a no brainer
2. - Options sound like a good alternative source of income
3. - I think I can find some good private financing here, and I don't know anyone in Miami, hahaha.
4. - Am currently expanding my business in hte first 2 and half months of 2011, I matched what i did in 2010.
5. - I bought a home in college, and have around 20-30k in equity in it.
6-7-8. So it seems like I should just network and meet people, learn more of my market, and do little to no risk deals to get experience before I start buying and holding.