All Forum Posts by: Davion Malwah

Doesnt the wholesaler have have the same access to trulia, loopnet, etc as the investor? How do wholesalers find properties dirt cheap?

I would assume making sure you have financing lined up, along with an appraiser, and inspector. If it's truly FSBO, you'll be saving some coin since real estate agents won't be getting paid.

How many of you are going long on BAC like me? :cool:
They made a good move by buying Merrill Lynch, but a terrible move by buying Countrywide. The mortgage mess will affect all banks until that is cleaned up and the economy improves. It will rebound, just not anytime soon imo.

BAC is currently at 5.08.

Definitely look into getting a FHA, since you plan on occupying the other side. You shouldn't have a problem renting it out due to its proximity to a college. If you do buy a fixer upper, just rehab it, bring it back up to market value, get an equity line credit of the difference and leverage that into another fixer upper, rinse and repeat, that is of course if you're trying to do this to the fullest.

Cheers.

This is common practice with property management firms, charging more rent and keeping the difference. I would do what Michael suggested.

Thank you both Jon, and Nathan, I'll take your comments into consideration.

Hello BP Community,

Quick question on leverage. Say I purchase a home in need of rehabbing for 100k on a block where homes usually go for 250k. I put down 20%, $20,000 down leaving me with equity of 20k. I rehab the place bring it up to market value, and have it appraised for 250k. Would I be able to borrow on equity and get $170,000 out? If so would it be smart to then rinse and repeat? Taking that $170,000 and leveraging into say 5 more under valued homes and doing the same thing done before? My stragety would be to hold the properties and live off the cashflow from rents. Is this plan feasible at all? It would be a quick way to aquire a lot of properties fast right? The example is just hypothetical so don't say you wont find a property that undervalued please :)

Thanks J Scott, thats what I was wondering.

What would be the next step in a real estate investors career path once he reaches 100 units or so and chooses to continue to manage them independtley, would you hire people directly to assist you managing it, essentially starting your own investment firm?

I was doing some newbie number crunching and came up with this:

50 Units $1,000.00 per unit
Gross Monthly Income- $50,000
60% Mortgage,Insurance,Taxes,Misc.- $30,000
Net- $20,000

Are these numbers accurate?