All Forum Posts by: Cody Campbell

I go by the 1% rule as my first line of crunching numbers. The property should bring in 1% of the purchase price each month. (400k purchase should gross 4K/month) if the deal doesn't pass this rule first I move on. Your numbers bring in $2780/month which means the property should be purchased at $278,000. Doesn't seem like a cash flow property.

also talk with doctors, I work with anesthesiologist and they are excited to earn 12% backed by property. Doctors can be a big assets to hard money lending. If you can do 1-2 deals with one, they will talk, and you'll have other options through their friends.

Quick breakdown.

Hard money loan of 100k

-usually 3-5 points up front (3-5% cash you give the lender for the loan)

-usually 6-12 month term @12% apt

-you pay interest only each month (100k @ 12% is 12k) (12k/12months...you pay the lender 1000/month until you return his initial loan of 100k

So your 100k loan over 6 months will cost you 3-5k upfront and 6k in interest payments.

If you can flip the house in 3 months you only owe 3k in interest for the loan

Burner is a great app for a private phone number on your phone.

Quick breakdown. Hard money loan of 100k -usually 3-5 points up front (3-5% cash you give the lender for the loan. -usually 6-12 month term @12% apt -you pay interest only each month (100k @ 12% is 12k) (12k/12months...you pay the lender 1000/month until you return his initial loan of 100k So your 100k loan over 6 months will cost you 3-5k upfront and 6k in interest payments. If you can flip the house in 3 months you only owe 3k in interest for the loan

I've got an opportunity to buy an upscale duplex, 3/3 new construction next to a university. The apartments nearby rents 3/3 for 549/person includes utilities and furnished. I believe this unit could go for 1500/unit grossing my rent to 3000/month. The purchase price is 250k. My numbers show 736/mo cash flow Thoughts?

I use quickbooks online for my small business and am thinking about using an account for my REI. It allows you to keep track of all expenses as well as send invoices each monthly and they can pay via check, electronic check, or even a credit card. There are some fees that come along with this method.

to build your team around you I would look for the professionals that invest in real estate as well. this may be difficult in your small town but if you need to a CPA, Attorney, or Agent that does REI is the best. I use an agent that flips and rents houses and I also use a general contractor that has rental properties as well. They get what your trying to do.

Do both, stat with the agent side and work alongside investors, you will learn a ton from working with them. Build up some capital and invest, you can do both. Working both sides is an asset, you just need some time in the game and then begin on the investor side. 

I guess what I'm really struggling with is paying retail...no equity after the deal. The numbers show positive cashflow of 886/month after all expenses but there is no re-fi options to cash out. I guess this is a long term investment.