Eddie Reid
financing your way to wealth
19 April 2015 | 1 reply
In Todays realestate marketplace in the area of realestate finance there is some resemblance as to how to create wealth quickly as it was when I first entered the business over 25 years ago,in those days there was no seasoning of title,a very powerful tool,for my younger investors they may not know what no seasoning of title mean,no seasoning of title simply lets you buy lets say a property that you bought for $25,000 ,but the appraised price was $50,000 and this was a property where there was no rehab necessary,in those days I could buy the property for $25,000 on Monday and sell it on Friday for $40,000,oh by the way i almost forgot to tell you i bought and sold 25 properties in 4 mo. only using $500,those were the good old days well this scenario is creeping back into the marketplace,this brings me to Todays lesson is based on using 4mo.seasoning of title and 100% financing to move your realestate empire forward,here's how,john doe is a pretty ambitious guy ,he doesn't have a lot of liquidity but he has some ,he finds 4 properties that cost $50,000 that each of them needs $25,000 in rehab,the appraise value of each of the properties after they are finished is $150,000,john fortunately is able to find 2 lenders that will allow him to do 2 rehabs at 100% financing,so john is able to get the financing for all 4 properties and now he has $600,000 in value and $300,000 in mtgs,john has 2 options he can either sell all 4 properties or hold them,john is able to find a financing source that will give him a 7% rate on a 10 year call with a 30 year amt,and the lender will allow him to cash out at 70% of the appraised value,so john decides he want to keep the properties so he decide to refinance ,his new mtg pymt is $1663,lets say taxesand insrance hypotheticaly speaking is $350,per property, it may be a little higher,so his total mo outlay 3063,on a $150,000 home based on where you are located,1300 mo should be a fair #,it could be higher,so your total gross rents are $5200-3063=$2137,oh we almost forgot what was johns cash out when he refinanced (600,000x70%=420,000-$300,000,this would equal $$120,000-estimated closing =$30,000=$90,000,lets see what are really happened,$90,000 profit,$2137 monthly cashflow,minimal out of pocket,being that this is based on 100% financing ,there will be some out of pocket costs along the way but they can all be recouped back,so the investors true out of pocket costs would be 0 because he was able to recoupe his out of pocket from the cash out refi ,so tell me what is the real rate of return on investment if your end result is that you have 0 costs of your own money in the deal,the last thing I want to mention is that some people who read this may not have any money , but have valuable homeimprovement expierence,another may have the credit but no money,the other may have money but no creditand yet another mayknow where all the smoking deals that would make the #s work ,I bring this up because I read a post of 2 people coming together to bring the resources that the other lacked,im sure the same thing can happen in this instance.
Lucian Harris-Gallahue
Buying Cuban Homes, Uncharted Waters
11 May 2016 | 26 replies
Essentially, government made all businesses double rates, and they are ignoring contacts.
Sean Salandy
Massive Mold in Home - Deal breaker?
18 August 2015 | 26 replies
Submit a low offer for purchase with the high estimate for remediationThen have a qualified local contractor only remove the debris and treat but not rebuild.My sister in Alabama Had an Estimate from a much advertised company for $45,000 but it only cost $5000 to strip and essentially sterilize the basement.
Casey Maib
Newbie trying to run numbers on trip-plex
6 April 2015 | 2 replies
i must have miss spoken cash flow is my primary goal i am just having a hard time finding it.thank you for taking the time to show me a new tool for comparing values!
John Oitice
coming in a bit too fast
7 April 2015 | 5 replies
@John OticeI too am working on rebuilding my credit so I can make deals from a position of credit strength, and found extremely valuable info on how to do that at this website: Credit Solutions.Sign up for the email freebies, because they essentially give you, step by step, the ways that you can regain good credit.
Ann Howell
Quality of data on note buying sites
9 April 2015 | 10 replies
The tools you have there are tremendously helpful.
Mitch Rice
Hi from Kansas City
27 May 2015 | 17 replies
He's been absolutely essential to my investing out in KC.
Joseph Molander
Hello from MS... investing in AL... and FL
8 April 2015 | 11 replies
There is lots of great information here at BP and some great tools.
Jon Rowe
Newbie from Orlando, Florida
7 April 2015 | 15 replies
If you don't want to start with making your own tool (though I recommend you do since you learn much more that way), J Scott has a great free calculator that you can download here: http://www.biggerpockets.com/files/user/JasonScott/file/20-sfh-rental-analysis
Travis H.
Help this puppy get adopted!
19 April 2015 | 2 replies
Essentially, you need to stage the dog the same way you would stage a house.