All Forum Posts by: Bryan P.

I've talked with a wholesaler recently and he says he does alot of work with Rent-to-Own end buyers. When the end buyer is renting to own, how does the wholesaler acquire his profit?

Who owns the house in this case? Who's the end buyer renting to own to? Where does the wholesaler stand in the process?

I think you guys would say this is an OK deal.

College town rental. 15 blocks from the school, rural town.

3 BR-1.25 Bath
1450 Sq Ft
NO OFFSTREET PARKING (THA'TS AN ISSUE)

Sale Price-40
Closing Costs-3
Rehab-minimal
Total investment-45

PITI for 20 years should be appox. 400 per month.

Could get 350 per room. 1050 per month gross rent.

Looks like it meets the 50% and 2% rule?

I'm figuring the return is easy to figure out. I'm 30 now and if I live until 70, I will net 500,000 in the pension by age 70.

10,000 dollars compounded for 40 years at 8% is 200,000. (Same time line)

It seems logical that this makes sense.

Trying to figure out if we get screwed on our pension plan.

After 22 years in the system, I will have invested 8% of my income, which is approximately a total of 80,000 by today's dollar value. It is inflation adjusted and based on the highest three years of pay.

After 22 years of service and 80,000 invested into it, I will receive approximately 25,000 net per year in benefits.

25,000 net, divided by 80,000 is a 31% return. So I get a 31% return after age 50, but 0% return before that. (obviously)

If I took a 10% early withdrawal penalty, plus income tax, by early withdrawal, I'm trying to figure out if I could beat those numbers.

I'm trying to figure it out with compound interest calculators, also including taxes. I'm getting a little confused.

If I took the retirement benefits for 20 years (from age 50 to 70.), I would net approximately 500,000 during those 20 years.

Originally, if I took 20,000 bucks and compounded for 40 years at 8% interest (conservative for real estate returns) is around 400,000.

I think this makes sense. If you're a math wiz and can make sense of this, help!

Interesting. So is the best route getting an real estate education? I know others in this forum would disagree.

There's alot of people that say wholesaling and flipping is key to getting the ball rolling ...to learn and gain capital to continue.

Does it take a special person to get out of a "job" and do real estate full-time? If a person doesn't have alot of cash...Is this a wild dream or can it be done if a person is dedicated to learning.

I would love to do real estate full-time. I would love to flip and wholesale houses. I've flipped one house and that's it. Never a wholesale. So the full-time idea is a far-fetched dream for me.

I'd dedicated to learning and I read alot. I can absorb the information but I often wonder if this can ever be a full-time venture or if I'm going to dabble the rest of my life.

I know it's up to the person, but I want to hear if the idea is/was a reality for some of you.

Wow, so there are companies that focus directly on transactional funding. Didn't know this. Ok.

Another novice question coming your way...

Wholesaling:
Assuming one has a sufficient buyer's list and a motivated seller, where does a novice wholesaler find a transactional lender for the first closing?

You guys make it seem so easy when you say find a lender, but where do you find this?

Is it the process of networking to find somebody with 50,000 bucks to lend for that short period of time?

I wish I had somebody in Harrisburg/State College, PA region that would do this. I've advertised on Craigslist about somebody mentoring me in wholesaling but haven't gotten any responses.

You're fortunate...sounds like a good deal for both sides.

Wonder why this isn't posting? Weird.