All Forum Posts by: Aaron Mazzrillo

Not enough incentive in that deal for me to consider dealing with 12 tenants. Let the guy know that he is going to be your investor in the deal and you need it to make it worth your while for all that management. See if he can make the pie a bit sweeter. He's carrying the paper and I'm sure has plenty of cash. No reason he can't create a bit more spread in the deal.

Man, that is one long commercial. Congrats on being #1 on that ranking report. I had to bust out the reading glasses to see it!

You say "we" so are there multiple heirs? Not sure I'd want one of my siblings being trustee only to wake up one day and discover the house has been refinanced or sold. It happens so don't think for second it won't ever happen to you. The guy who cuts my lawn grew up in a house across the street. There was also a duplex out back. The property was in the parent's trust. After both passed, two brothers ganged up on the third and refinanced out all the equity and then sold the property to a developer who tore it all down. Now the third brother lives in a mobile home park down the street and the three houses that were built on his former home sold for north of $5M. He got nothing out of the deal except the horrible reminder that he got screwed every time he comes here to mow and blow.

If you have none of those concerns, I wouldn't mess with that title at all. As another member stated, you'll lose your prop 13 status and that super low tax bill will show up this coming November with the decimal place moved to the right one column. 

The best asset protection is good insurance. That is a lot cheaper than being reassessed.

Actually this is a decent strategy. Some of those pools will still be empty and although that doesn't imply any motivation whatsoever, I've bought lots of houses that looked like hell when I pulled them up on Google maps. My point being, I spent a lot of money to get those sellers to call me, but I could have paid a VA over in PI $3/hour to fly around neighborhoods writing down addresses on a Google doc spreadsheet and building me a nice marketing list. Give it a shot and see what happens.

Simple way to avoid all this is to stop acting like a moron by tying up property, then letting the entire world know that you're trying to unload it. Putting a sign in the front yard? Listing it? That is not wholesaling on any level. That's just dumb. Dumb. Dumb. Dumb.

This is why I have said and will continue to say that rehabbing and flipping is the EASIEST way to make money in this business. You buy cheap using hard or private money. (There is no law against getting a good deal as long as you're not bilking little old Mrs. Johnson down the street or taking advantage of Mr & Mrs Neverdowell who are in foreclosure.) You fix up the dump with off the shelf goods from Home Depot and you relist with an agent. It's so easy. Sooo easy. 

If you're pretending to be a wholesaler and advertising the property for sale without knowing exactly who your buyer is going to be before you even negotiate the deal, you're doing it all wrong and you deserve the stiffest, most severe financial penalties they can slap you with. They ought to rename those penalties a Dumb Dumb Tax.

Me and drunk Barrack Obama approve this post.

After reading through this thread... and I have no idea what BP hole I fell into that lead me here, all I can think of is that old saying, "87% of all statics are completely made up." So much puffery in these posts its comical.

3/2 ranch is the most desirable piece of real estate in the country. Can't really ever go wrong with one of those... unless you pick an absolutely horrible location or crappy school district.

There are too many good option available for using that kind of money to produce great cash flow. Probably not life changing money even though many think it would be. Definitely life improving money.

Then there is that whole lottery ticket thing....

Originally posted by @Mike Flora:

Aaron Mazzrillo talked to Krasney and there is another option to have him write up an agreement that myself and tenant sign and have notarized that can take place of an actual eviction route. Possibly could do it with this tenant right after I close next week but still trying to figure out the best option here with the situation at hand. The seller financing with principal only payments and my purchase price opens up many more options for this kind of thing to possibly happen with the tenant and how much to get rid of at the property.

 Like I said earlier, I'm from a different camp. That place would have been cleaned out already if it were mine, but I take the road less traveled. Your way sounds like a good option with less recourse.

Maybe you left a few details out, but what you did say is that you started investing in 2013 and own 4 properties. You went on to say that you are considering expanding. I don't understand why? Doesn't seem like you've really conquered the market you're in and buying 1 house a year isn't a velocity that would justify needing to expand into another market. I bought two houses right here in SoCal this week... and today is only the first day of the week, and I can't see any reason why I would need to expand into another market, especially one that is on the other side of the country! Quite frankly, I'm contracting back into this market and trying to get rid of all my out of state properties because I find it much more lucrative to focus my time and energy on the abundance of real estate we have right here. 

The money is definitely not always greener on the other side of the country.