All Forum Posts by: Deyson Shaw

I had about 40k saved up. I pulled out a HELOC of 85k on my primary residence and used that to buy a property that needed work. Once the remodel was complete I sold the property and used the proceeds to put 20% down on a new construction duplex. I utilized a 1031 exchange since half the property was an investment, and I also got a great rate since I purchased it as a primary residence.

I moved out of that duplex 5 months ago and it now cash flows about $1750 a month. I wish I could turn 40k into that kind of cash flow every time…

I would say that you guys have more than enough saved up, you just gotta convince yourselves to jump into the deep end of the pool.

Great deal! Those are getting difficult to find in the Twin Falls area. 

Has anyone seen the Vice News article about Bigger Pockets? I just saw it posted this morning. Headline reads, “ Inside the wildly popular forum where landlords try to screw you over”.

It blows me away to such ignorant opinions that make all landlords out to be greedy people. I worked two full time jobs to get where I’m at in life, and I’ve sacrificed a lot just to get the few properties that I have. But now I’m the scumbag that actually expects tenants to pay to have somewhere to live. How dare I....

Awesome. Thanks guys. I just finished getting a off market deal and used my broker to assist with the PSA. Sounds like the best thing to do is have him draft one up for me on future deals as well. 

Hey BP. I'm wondering where the best place is to get a Purchase and Sale Agreement? Should I be finding one locally through an attorney or do they have online templates that will work just the same? I'm fairly new to all of this so any help is appreciated. 

I recently applied for a HELOC through a local bank and their numbers came back terrible. The comps they sent me were half a mile away from my property in a far less desirable part of town. Naturally I applied at another bank and their numbers were spot on. 60k higher than the previous bank to be exact. Now the first bank wants 100 evaluation fee to close out the application. Is this a normal fee? I'm fine paying it if it is, but this is the first time I've even heard of this. Thanks in advance BP community!!

Its hard for me to see the money in this one. Lets say you cut a deal and purchase the property for 150k, then bulldoze and and build new for 220k. You are now into the property for 370k. If you are able to divide the lot and build another house for an additional 200k then you are now at 570k. You would have to sell each property for 300k+ which would be a tough sell in jerome. As a new investor, I personally would walk away from a deal that needed that much work. 

@Andy Mirza My plan would definitely be to fix it up and hold as a rental. You are definitely correct when saying that dealing with family needs to be done right. We are supposed to sit down with her realtor and find a number that works for both of us. I want her to be compensated fairly but I'm not looking to pay full market price for something that needs full renovation. Hopefully we can find terms and both walk away winners. 

@Roni Elias I will be having my contractor walk the property Monday with me. Hopefully there are no surprises aside from the obvious things that need fixed. I will also be setting up an appointment with an attorney as well. I appreciate your input.

Hey guys. I’m looking for some advice on my Aunts home that is being foreclosed on. I’m new to the real estate world so pardon my ignorance. I have only recently found out about this foreclosure and the auction is coming up quickly (October 24th). From my understanding she has two mortgages on the property. The primary being foreclosed on is around 51k. She took a second mortgage out about 14 years ago and that one is also in default at about 68k. According to my aunt, the second mortgage company said they were willing to settle for far less with a cash payout. Around 15k is what she told me. My question is this, how do I go about determining a total payoff amount and purchase the property before she is foreclosed on? Her home is in a great neighborhood and similar homes sell for around 200-225k in fixed up condition. Unfortunately her house has not been kept up for many years and could easily cost 40k to make it rentable or sellable.

A little background to my financial situation. My original plan was to start investing in real estate after a year or so of saving money and educating myself further. But my aunts current situation is speeding things up a bit. I just pulled out a HELOC on my home for 51k and have an additional 50k in cash. I'd really like for my aunt to walk away with some money rather than be foreclosed and have nothing. I just need to know what the best angle is for me to approach this situation. Any advice is much appreciated!