All Forum Posts by: Account Closed

Can I ask you about this nightmare property. Before you bought this deal, when every thing was on paper, were the numbers adding up? Or was it a thin looking deal from the outset. 

3300/mo rent. 39,600/year on a 100k building? and only tying up 23k of your own money? 

If it happened, congrats. Best % return on cash I've ever seen or read about on a buy and hold rental. 

If by Deal, you mean that after all expenses and capex/maintenance have been accurately and properly set aside for, and the remaining monthly income is positive? and at an acceptably high enough percent of equity (CoC)? And not in some slum, ghetto or war zone?

Otherwise, ya, on market, Zillow, ect. Sure. Plenty of "deals" there. 

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You need to be your own advocate and on guard the whole way through now. The world is chuck full of planners looking for people like you to make their 1.5% on, and happy to expose you to plenty of potential for passive losses to write off againt your W-2 income. 

"I’ve made six offers, but none were accepted. I am not sure what I am doing wrong."

Nothing if you've reached the max you can offer and still have the deal pencil. We're in an era where no price and no interest rate is too high for "investors". 

 She might feel deceived is why. Which might effect what she was willing to offer.

I'm sure something like that has never occured to a Realtor before though. 

lol. Every response was from a lender or realtor. Fresh meat?

"I don't really care about making a profit off the monthly rent in the short-term (though it will be nice!), I just want to build equity and not "lose" money."

Realisitically you're either cash flow positive or cash flow negative. So you are ok being cashflow negative on 300k with speculating on large enough appreciation being the only real way you come out ahead on this? 

Also, building equity... at these mortgage rates, you realize the 4 out of every five dollars paid to mortgage goes to the bank in interest don't you? A peek at an amortization table would be sobering. 

So you'll be paying while playing the long game on this hoping for rent increases and a refi down the road.  

My main question is, if the first deal isn't so hot, where are you getting the money for the next deal after?

Overcoming whats called "analysis paralysis" here on BP is easy:

Show your client a legitimate deal that actually pencils under conservative underwriting, year one, without smoke, puffery, projections, loose math or any kind of deception. 

That should get rid of the overwhelming amount of "analysis paralysis".