All Forum Posts by: Matt Crusinberry

@Devlin Melvin, As these fine gentlemen have tried to explain, the 50k equity is the 25% left over after you pulled out 75% from 200k. 

200k - 150k = 50k (equity)

You would now own 25% of the property, and the bank/lender would own 75%. And to answer your new question... NO, you may not take out more money than the equity you own. You would even be hard pressed to take out all of the equity you own, on a cash out refi. I hope this helps, and good luck!

@John J Garza, Yes, there are actually several ways to get into REI while deployed. My first suggestion would be to read and educate yourself in your down time. Also, you'll want to learn your market and strategies that will best fit your goals. Continue on BP to ask as many questions as possible, and search out questions.

I personally have purchased several properties while on deployment, and I'm sure others on here have too. PM me if you would like further assistance, and I hope this helps at least point in the right direction. Good luck!

@Jerry Sanders, The 2% rule is based off of the purchase price. So if you bought a SFR for 100k, whether or not you put 20% down, your rental income should be 2k a month. The 2% rule has many variables (i.e. location, your ability to negotiate with seller to get a good deal, etc...), and it's not always applicable for all areas; more so in a probable function. I would suggest that you run your numbers (including cap ex, repairs/fixes, and vacancy) to determine if it meets your threshold, whether that's 1%, 1.5%, or less. If the property doesn't, either move on or offer the number that will. I hope this helps and good luck!

@Eric Sanne, It does appear that you're looking to do a lease to own or rent to own, which I personally am a huge fan of. I would suggest you search out "rent-to-own" or "lease-option" as a topic, or you can PM me and I would be glad to spell it all out for you, along with telling you how we do ours. Good luck!

You also may want to check out PODCAST #185 (https://www.youtube.com/watch?v=97dpS9jDBAE)

@Joshua Mathews, What do you consider a reasonable agreement? Also, I would suggest you searching out other people that have asked this exact same question. There's a plethora of responses that I'm sure you can pull from. Good luck Sir!

@Devonte'e Holland, It appears that you're missing your insurance cost. Also, are you planning on buying this in cash? If so, are you just keeping your equity inside the property or pulling it out at a later date via refi or HELOC? Are you buying this property at the market rate in hopes of appreciation? You're also going to want to keep in mind your capital expenditure rates.

These are just some things to keep in mind as you continue to seek out future investments. I hope this helps and good luck!

@Albert Gutierrez, Some of the other strategies would be: owner financing, seller carry back (seller makes up a portion of the down payment), master lease, partnering, hard money loan, etc. I hope this helps again, and let me know if you have further questions (PM me if you would like) or just continue to search the forums. All of the ones I've just given are spoken about in depth on here (BP). Good luck!

@Evan Evans, I too am a big fan of the BRRRR method and use it as much as I can. Also, as previously stated, you can give yourself that warm and fuzzy feeling and be able to sleep at night knowing that you just have taxes and insurance (plus utilities as things progress). Your ability to scale is definitely going to be easier with this method. I wish you the best of luck!

@Albert Gutierrez, The answer is yes, but it would consist of using other strategies other than conventional loans. I would suggest reading "Long Distance Real Estate Investing," by David Greene. I hope this helps, and good luck!

https://www.biggerpockets.com/store/long-distance-real-estate-investing-ultimate

@Ray Trounday, You can either look them up at your county website, visit your county courthouse, or utilize a skip trace program. There are a lot of them out there, and BP actually promotes some. Good luck!