All Forum Posts by: Alex Aronson

Do you have a status update on your situation?

Have you tried to contract your lenders to renegoitiate the terms of the mortgages? Maybe draw them out from 30yr to 40 year to reduce the payment amount?

When you talk to them, try framing the situation as a win win for you and the bank for them to put you into better financing terms versus the cost of the bank having to hold the properties if you walk away.

Best of Luck

It sounds like you do not have the right mind set to be an investor yet. Try reading Rich Dad Poor Dad by Robert Kiyosaki to see if that will help.

In terms of raising funds for your investing, you may want to look into bird doging or whole saling as well as creative financing solutions such as cross collaterization, seller financing, and property managment.

I am about to close a deal that will cost less than $400US out of pocket.

Good luck

If I am not mistaken (and please check with your tax professional), if you have a space in your house that is only used for your business and only your business, you can take that square footage divide it by the total square footage to get a %. That % can then be multiplied by your annual utilities, security system, mortgage payment, insurance, and property taxes as expenses that can be charged to the business.

There are some neuances that have to be observed when doing this so check with your tax professional.

2008 is the first business year that I am going to charge these expeneses after hearing about it from my tax professional early last year.

I would send the guy an offer for 160K and see what happens. He might negotiate or he might say screw you. It can't hurt to try. It's always a good time to buy real estate as long as you are buying at a bargin and are in tuned with the local market.

The difference between an investor and a speculator is that a speculator can only make money when they sale the property, an investory makes money each and every month. Which one are you going to be?

I would heed to Mike and Jim's advice. They have experience (at least I know Mike does). Check out Mike's blog of his day to day adventers in real estate. http://www.1minutetorentalpropertyriches.com/id53.html

Oh, by the way, after the guy says screw you, resubmit the offer 1 month later.

Anyone know of a commercial lender doing 100% funding or cross collaterization loans right now?

Thanks,

I would try contacting some of the larger property management companies and ask what the vacancy rate is for the properties they manage as a whole and what the vacancy rate for the neighborhood you are interested in.

Since you are new, you have to learn that there are always other deals out there. Many people think a good deal only happens once in a life time, once in a decade, once in a year. Truth is, GREAT deals exist all the time. The good investor finds them.

You are worth more. Keep looking and you find a better deal.

Dave,

How much cash flow do you expect to recieve for the property if you could get financing at 100%?

My rule of thumb for any deal I do is that it has to cash flow based upon no money down.

Joe,

What you are talking about is called cross collaterization. About a year a go you could do that almost all day and night. Now it is much harder to do. I just had commerical lender change their guide lines requiring the buyer to put 10% down reguardless of how much the seller was willing to carry as a 2nd.

If you find someone that will do it, please post it on the thread.

Hello,

Just finished my taxes for 2008. I noticed that my % of cost from repairs compared to gross rents was 4.7%. I currently budget 10% of gross rents for repairs. IE if rents are $800 a month, I set aside $80 for when repairs are needed.

For the experienced folks, what is your average % for repairs you set aside and experience.

Thanks,