All Forum Posts by: Adam Craig

I didnt realize banks did rehab loans or lines of credit for flipping these days. I will look into it.

What are the major factors in hard money loans? - annual income/credit report/ assets/ the property ect... What I am getting at is, can I get a set amount of hard money approved backed with my credit and income - and then go look at properties. Or do I need to find the property first, then approach the hard money lender.

I am going to do rehabbing/flipping in addition to SFH rentals. I am a business owner that looks good on paper. High income, good credit score, low debt, and good cash reserves and ability to be 20% down if needed.

I want to look at properties with a serious intent to buy somewhere in the 35-90K range. But I feel like I cant make offers because I am not financed.

Where should I look for money? Banks or hard money?

I would love to be approved for a set amount then look for houses knowing I I have the cash to buy them. But does it work like that? Or do I have to find the house first then try and get financed based on the ARV.

Loan terms would be 2-6 months. Thanks

Like you, I was resistant to stop using my spreadsheet and get on quickbooks. I switched accounting offices so I was forced into it.

At first I was using both, but after several months of dealing with quickbooks and watching some online tutorials, I made the switch and couldnt be happier.

It is somewhat of a clunky program, but have a CPA set you up and make sure you can ask him questions as you go.

I guess some of my resistance to manage my own properties comes from my own rental experience.

I was renting 1 room in a 3 unit house in Cleveland Heights for a couple of years- Not a complete ghetto but defiantly not your A+ tenants. The house is old and needed a ton of upkeep in my short amount of time. The woman above me didnt pay her gas bill for 2 months which caused the gas dryer in the basement to become useless.

For one 3 unit house, it seemed like a lot of work for something that was never going to appreciate much.

I plan on buying is more desirable areas and I will be starting local so I will defiantly be managing on my own in the beginning. Maybe I will come to find its not so bad.

Thank you everyone - This forum is truly a gold mind.

Steve - I have been tearing through audio books while I drive and was in need of a good recommendation, I will defiantly check out Broken Windows.

Good articular -

Here is where I dont feel I apply

"The fact is, you don't eat gross income. You can't feed your family on gross income."

I am single 23 year - My expenses are dirt low, all I do is save money - I did about 15K month in 2011 and will be closer to 20K/month in 2012.

The only reason I bring up my current income to make my point - $1000/month of lost cash flow for 10 properties (100/property) makes no difference to me - and I dont consider it lost cash flow, its paying an expert for service, like an accountant.

My time = more business income. The free time and less stress by finding a good manager still seems well worth it.

Again thank you - very informative.

But I want to invest out of state and isint a property manager a local market expert - and that's part of what your paying for? They have local market knowledge, know maximum rents, economies of scale for repairs, legal knowledge ect, experienced with tenant screening...ect

I am thinking about what these properties are going to do for me 10-15 years down the road. I am 23 years old and I have a long time to "let equity happen".

Ahh well - I dont think my mind is changed but I am sure to figure it out as I go.

Thanks

Good Stuff Nathan -

I am not looking to be 100% passive. I understand the business needs to be managed.

I just dont want to be as hands on in day to day stuff - knocking doors for late rents, screening tenants, 2am phone calls for repairs.

My time if much more valuable to me - putting more time into my eCommerce business means more money, so that business is first and foremost.

With that said, I still have a huge passion and am willing to devote some serious time to finding properties and dealing with people to manage them.

I guess I should be asking "If you were in my shoes" - I understand the answer is going to be different coming from someone who relies on the rental cash flow to live.

I commented before on my situation, but just a quick recap so you know where I am coming from. I am self employed via eCommerce and my business bring me about 15K/ month profit and rising - leading me to want to invest in real estate.

I am in Cleveland but eventually want to invest in growing markets (Texas/Atlanta/Florida) and hire a property manager (I dont want to nor have the time to be a landlord). My investment goal here is appreciation/equity build up/ tax shelter/ and cash flow - In that order.

Most comments on biggerpockets seem to bash property management because of bad managers and it cuts into cash flow. The advice I get is "Manage it yourself, save money and headaches."

For me - my business is my main concentration and form of cash flow so I am okay with taking a smaller cut and letting professionals screen tenants and control rent. The 6-10 percent they take is WELL WORTH the amount of time it will give me to run my business and peace of mind.

Is there anyone doing what I want to do? Can someone tell me a successful property management story? I know good ones are out there...

Thanks for the input. Whatever market I decide to invest in, I am going to make sure I do my DD.

I have read a dozen books over the past year on real estate/property management/investing, listened to hundreds of hours of real estate podcasts while I work, and I have my old landlord and my accountant who invests in real estate to bounce ideas off of.

I would say I do too much research sometimes and need to pull the trigger - nothing like learning from doing. I will defiantly start local now