All Forum Posts by: Ed Caldwell

Not a fan of condos due to HOA potential problems and eats into returns. Rental market is strong in Phoenix and always good around th university if you can find them and set it up correctly so kids don't destroy it. Better returns around the smaller universities in Glendale you may look at as well as houses are much cheaper than Tempe and still strong demand. Let me know what your looking for and would be happy to send you links from the MLS as I am licensed and have rentals as well. Feel free to PM me.

Ana, the lender doesn't care who is on the title to a property as they will execute a first lien against the property.  Payments don't get made, they take the house.

Neither you or your brother would be able to sell the house without the lender being paid off.  The paperwork you sign at close will acknowledge the lien on the house by both of you as owners, even if the loan is only in your brothers name.

Hope this helps.

Oyama, purchase the property "Subject To" the first lien staying in place. The buyer stops the bleeding on paying the mortgage and you just take over making the monthly payments and rent it out. First, are the repairs $10k for a retail buyer or much less to get rent ready? Also, make sure rents in the area will more than cover the monthly PITI payment. Thus, little to no money into the deal and should cash flow positive. If the seller needs assurance you will make the payment, use a loans serving agent.

Hope this helps!

Hi Pablo,

I am a licensed agent in Arizona as well.  I chose HomeSmart as an investor as the fees are dirt cheep for investing purposes.  I primarily got my license to save commissions paid on the backside of flipping houses.  Training at HomeSmart is pretty good overall, but if I was going to be a full time Realtor, there is a lot of value with giving up some of your commission up front to learn from a really good experienced Realtor.  Just like investing, find a Realtor that is crushing it and do everything you can to get on with them as a mentor to learn.

I hope this helps you out with your decision and congrats on passing the Realtor exam!

Hi Mike,

Fortune Builders has some good education, but it is not worth the Mastery price. Take it from someone who bought in. I was expecting some great coaching for that price, but unfortunately it sorely lacking and totally not worth the price. The three days had some good information and direction, but half the time was spent up selling you on the Mastery Program. There is plenty of good information here no BP and many experienced investors to ask questions. I believe you should always be educating yourself, but there are cheaper and more efficient ways to do it. Depending on what you want to learn to do, there are many references to great books throughout this website and in the show notes to the podcasts. If you need a mentor, network at your local REIA and see if you can learn from someone doing it in your area.

Best of luck!

Congratulations, you are now a true flipper and real estate investor!  I lost $30K in a single day buying a foreclosure at auction.  Looked up permits online, new electric panel, permit on a new roof etc.  Even paid the resident $500 to get out and leave the place in good shape.  Got into the property and tore up the false floor and behold, it was rotten from the ground up and ended up being a tear down, which was beyond my capacity and experience level.  Thus, ended up selling it to another investor at a loss under a 1031 exchange.  I feel your pain and am a lot more diligent and no longer buy 1940ish properties at auction that I can only evaluate from the outside.

As you said, painful lessons learned!

Divorce is always a costly recipe for disaster, especially if they are both still on the title and mortgage.  It is always better to sever financial ties as quickly as possible.  As part of the divorce, is the ex required to pay the mortgage?  If so, I would go after him and have the court garnish his wages to catch up the payments that you should make so you don't lose the house.  Private money is expensive and they do not like to be in second position with a first mortgage.  Second, if I was lending there is a lot of risk with the ex still on the title to the house as you and the girlfriend don't have total control of the asset?  I would figure out how to cut ties with the ex, even if you have to outright sell the current house if possible.

Hard choices and I hope it works out for you.

I drive my 2001 Ford F-150 Supercrew (first year made) with over 200K miles on it.  Like everyone else here, I invest my funds in appreciable assets and not depreciable assets.  I just have to see how far it will go at this point. LOL  Of course with a wife and two teenage daughters, that means multiple cars as well.  New vehicles are just too costly, but they are easier to get financing on.  If I buy new, I intend to drive it till it dies and it will not be a high end vehicle!

Wholesaling is a great way to start out, but it is not easy to get started and it all depends on you budget.  If you have limited funds to get started, you are stuck with Craigslist ads, bandit signs and co-wholesaling with other experienced wholesalers.  Direct mail is a tried and true method of marketing, just know that it is expensive and you will have to send out mail to the same list many times before sellers will respond.  Thus, start with how much of a budget you have for marketing and start mailing to a smaller list that you are prepared to mail to several times.  Many of the Guru's preach this as a way to start with no money, which is true for the transaction itself once you find a property and a buyer for that property, but it takes a lot of marketing funds to get the ball rolling, especially when you are starting out.  If you have limited funds, then just be prepared that it will take longer to find deals using bandit signs and Craigslist type of marketing, but once you find and close a deal, you can roll the profits back into more marketing.

I hope this helps.

I would have a discussion with the contractor and ask them what they think is a fair resolution if they don't meet the deadline.  If they come up with the penalty, then it is their own reputation and word at stake and it is easier to get it into the contract.  Most contractors start other jobs before they finish the one they are on, which always causes time issues for investors.  Like I said, if your business was at the level that you kept them busy all the time, they pretty much would be working exclusively for you and you would have more control.  As a new flipper, you are hit and miss as you come across a property to rehab, so the contractors pretty much have more control as they don't know when and if you will have more work for them.  At least this has been my experience.  Build the relationship and get to the point you are giving them work consistently and you will have more control and negotiation over time.