All Forum Posts by: Dave S.

I would be interested in signing up for myreipro. Keep me posted

A little background. I am in the process of purchasing 3 properties from this seller. I've mentioned to the seller that I would like to get more properties off of his hands (he is retiring) but i do not have the funds to do so. I've since spoken with him and he seems to be on board with playing bank for a couple more properties as he has at least two fully paid off. My question is, how do we go about doing this and ensuring everything is legit??? Is it as simple as drafting up a promissory note with the agreed upon payment schedule, getting it notarized and paying $150 or so dollars to transfer the deed? 

As i would eventually want to get him out of the loop and refinance (if it makes sense and when i built up enough equity for 20%), is it as simple as refinancing if i was with an actual bank? Does the seller have to hold onto any of the money (my equity) for the time when I want to refi?

Thoughts / concerns / etc???

I wanted to get a feeling for how people handle these types of services which are lienable. Obviously you want to ensure that these get paid on time and not get behind. So what makes more sense, getting the bill in my name (or the LLCs???) and then pay for the services (bill the tenant) or have the tenant pay and submit a proof of payment? Building up a system to automate this makes the later better, more hands off??

This will be somewhat of a 'starting out' question and I thought that it would fit best into this category...and Ill explain why. 

So wholesaling basically will get you a spread between the price that you negotiate with the seller and what you sell the property for, the only way of growing this to a sustainable business model is to get a large number of the deals under contract at a decent enough price. Unless I'm grossly misunderstanding this, wont you have to place a large number of offers onto houses to get a decent quantity that will stick?  How would you ensure that when the offers are submitted you always have a way out of it for what ever reason??? What have others used to cover themselves in these situations???

Any and all help will be appreciated!

@Chuy Gonzalez and @Casey J Burkhead

Thanks for your responses. I ended up getting quotes for 500K and 1M and the difference is minimal. Doubling the amount of liability for that cost gives me a better piece of mind incase something does happen.

@Dan Call

I did use my 401K to invest in real estate. The interest rate is 3.5% (I use T Rowe Price)

Looking to understand what others have done in the past and why? Am i just over paying for something that i never will use?

I purchased properties with my savings, a 401K loan, a HELOC on my personal property, how do i continue growing my real estate business without having to wait for the funds to slowly trickle in from the rentals? What are my options? How to I proceed? Thoughts?

Depends on what type of 401K you have. Some will only allow you to withdrawal 50% or $50K, whichever is less. When you take out the $50K, you have to pay it back within a particular amount of time. I believe the longest you can go is 5 years. There is an interest rate contributed to doing this BUT instead of paying that money to a bank, the money goes into your 401K!!!! The pay back is spread evenly and automatically taken out of you pay check. 

Im looking to get a baseline understanding of HUD / Tax Sales / Sheriff sales / etc... Which ones do you have to worry about for 2nd liens, back taxes, fees, etc...These are honestly the things that are holding me back from bidding. Any books you can suggest I start with???