Loveland, CO · Member since 2008 · 1k+ posts · 123 votes
18y
Tim is onto the real deal. I used to get accused of "picking nickels out of horse**** while wearing boxing gloves" by some of my "smart" (ie;employed by Fortune 100 employer) friends.
I always told them; "I get love at home, I do this for MONEY".
I once met a guy on a SFO-DFW flight who was making his monthly trip to the Dallas area to "manage" his rental properties. It turned out his rental properties were about 4 small strip centers in "not great" parts of town. Each had a package store, check cashing spot, beuaty/nail place etc-you get the idea.
Anyway he'd fly down once a month, drive his rental to his bank and get his 9MM out of his safety deposit box, go collect all his rent, ALWAYS ALL PAID IN CASH, OFTEN IN SMALL BILLS. Go to the bank and make his deposit and fly back to San Francisco. He had bought these places in the '80s downturn in TX and was minting money on them.
I'm sure most of his neighbors thought he was just an "ordinary businessman".
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
18y
Originally posted by "ncarey":
Are you looking for people to validate your strategy. If it's working keep doing it :D
Probably more looking for like-minded folks like you and I. I get this problem from armchair investors in the networking circles of Chicago. They assume or are told by competitors that I'm slumlording or dealing with trash properties because I'm buying them so cheap. I know about 6 people in Chicago that actually "get it" and are doing very well in this current market.
Here's the real deal on what's going on. Most networking circles are being run/funded by real estate professionals and merchants - not investors - who are compensated based on the size of the deal. To them a 300k rental property is better than a 10k one because their cut on the transaction of the 300k deal is better. If they can get a group of people to think that they are better off because they are paying more then they can get them to buy higher properties leading to higher commissions on borkerage, loans, bird dog fees, wholesale fees, etc....
It's lonely in the land of truly maximizing your buying dollar. :lol: Good to have you with us.
Contractor · Antioch · Member since 2008 · 22 posts · 0 votes
18y
I have been a member on this forum for about a week now and appreciate all your comments, I'm here in the Bay Area and have been interested in finding the type of properties Tim and Flipper are talking about for cashflow maybe flipping if possible, would you guys mind a newbie picking your brains sometime about out of state investments ( Did I mention I live in the Bay Area?) Me and a friend were looking to get started but would appreciate some insight, thanks!
Real Estate Investor · SC · Member since 2008 · 1 post · 0 votes
18y
Your right on- low cost houses are the only way to go! How are you guys that are acquring the low cost properties getting your financing for the ones you are keeping for rentals? I have had a hard time getting permanent financing on house in the $15K-$40K range in my area. Are you using retail lenders, private lenders, or other sources to fund these deals long term?
THanks,
Greg
Real Estate Investor · Member since 2008 · 340 posts · 34 votes
18y
Originally posted by "WeBuySCHomes":
Are you using retail lenders, private lenders, or other sources to fund these deals long term?
THanks,
Greg
Have gone full circle and back to basics...We use local, mom and pop community banks for low cost deals. When we use a local bank, the bank is not surprised by the values.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
18y
Mine's all private money for now. Working on some lines of credit against the ones I have to buy more. I am rebuilding credit thus need assets to get any kind of loan. Matt's company is in a better credit position and what he is doing is ideal and is where I'm headed. As he said, the mom and pop banks know the market and they also tend to have more connection to their community and a vested interest in it's improvement.
Real Estate Investor · Tucson · Member since 2008 · 5 posts · 0 votes
18y
It amazes me that you can buy below 30k in some cities.
Tucson's average sale price is $225k!
Anyway, the major "con" for me is that low income properties will possess more headaches w/ evictions and maintenance. This means more time out of your life.
For me, having a young family, I cherry pick deals that will give me the best tenants because I value low maintenance rentals.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
18y
You can make your low cost properties low maintenance in how you set up the interior. Dark brown carpet, dark brown tile, flat white walls and ceilings, etc....