All Forum Posts by: Brad T.

No problem, David. My main point is that if you factor in the mortgage pay down for your investment, you can get the same kind of cash on cash return plus this extra 10% or so of return from this. When you buy properties in cash you are losing a lot of extra ROI.

Brad

Hi David,

  Welcome to BP.  Are you able to get bank financing?  I would prefer to use that 25K to leverage into a 100K house in a better area and get better tenants, more appreciation, higher rent, and better return overall.

Brad

Hi Jeff,

  I have 90 units of apartments in South East Michigan and seem to live pretty close to you.  I have used credit unions for financing and have had the below terms.  Are you property managing these yourself or do you have someone else doing this for you?

- 20-25% Down

- 20-25 Year Amortized

- 0.5-0.75% Origination Fee

- 5 year fixed, market rate adjustment, then 5 more years fixed

Best of luck!

Brad

Hi Hassan,

Welcome to BP! Making some quick assumptions, if you want to make 50K per year, you will probably need to start in the flipping world. Even if you have a somewhat high cash on cash ROI of 20% on rentals, you would need 250K to make 50K annually. I would say that you have a better chance at starting by flipping and making money fast, maybe 10K-30K per flip, getting some help with private money lenders. Then once you have more capital, put that into your buy and hold strategy.

Best of luck!

Brad

I use Chris Moshier for my apartments also, he if fantastic.  What size building are you getting it for?  PM me for his phone number.

You could also get a commercial loan on it.  It will only be for 5 to 7 years, but this will help you acquire the property and then you could refi it into a longer loan later on.

Hi Lance,

  This is the group in Troy.  The website has all the info.  It is a great group.

Brad

https://www.michiganrealestateinvestors.com/

Also, make sure to clean up your credit.  It definitely helps when you are dealing with banks.  You can do this at the same time you are gearing up for investing.

Welcome to BP, Jesse!  It looks like we live in the same area.  It is a great area for flipping or rentals, so good luck in whichever one you choose!

Brad

Sounds like you are a Lifestyles Unlimited member to me!  It is a fantastic group.  I am a lower level member from out of state.  I absolutely love their philosophy and their podcast is excellent!!