All Forum Posts by: Glidden Rivera

@Jeffrey Smith

The answer is, make sure you record the transaction and get the deed/ title.

You get the tax break because you own it

@Calvin T.

Agreed.

Never buy for appreciation, cash flow is king!

@Andrew McCotter

Depends on your model. Being a cash buyer is good when you need to move quickly,

If you buy the property right you will be in position to pull all you money out in a refi.

Doing so will allow to recycle the money through multiple deals.

As mentioned you could also divide proceeds among multiple deals.

If you are a turnkey investor, I would say use leverage ( you will leave equity in the deal)

If you are a BRRRR investor, you can pull your cash out and do it over and over with the same money.

Think about your strategy first. In both cases I would employ you to accumulate quickly and leverage. Sounds like you have a double edged sword.

@James Williams

I would go hard money on it.

You will need about 20k to show liquidity

Do you have someone that can lend you 12k

( friends and family- pay interest)

@Aaron Flake

He will need to have liquidity of amour 20k

To use hard money as LTV range from 65%-75%

Depending on experience

@Ryan Hall

Sure:

Line of credit: allows you to leverage your equity without diminishing your cash flow long term.

Consider it like a credit card but with checks.

When you pay it off, you can use it again and again. ( it should go without our saying, I’ll say it anyway.... pay off the dang card)

The power of the line of credit, is having resource available and ready to deploy immediately and repeatedly. If you don’t use it, there is no payment to be made.

This debt weapon can be used to fund your down payments and rehabs. When your project is complete, refinance or sell.. pay back the LOC and do it again. Depending on the line available, you can potentially fund the entire acquisition and rehab.

Imagine being able close on a property in a matter of days and not weeks ( you are now the bank....and can move quickly)

An equity refi moves slower to close, you will have a payment because it’s a loan. On an investor loan, you will diminish cash flow because you have raised debt and keep in mind, over leveraging can leave you compromised ( always dangerous). These instruments are long term (5,10,20 yrs) when you pay the principal down, you can not use the money again ( it’s gone)

A refi can still be a powerful debt weapon if you are buying an asset that is going to produce enough of a return to make the cash out refi worthwhile.

In the case of this forum, a large amount of equity is in play. Depending on the investing model, a play can be made to sell the asset and upgrade from 1 or 2 doors to 16 and 20 doors or more. The captured equity is a down payment on a 500k-700k ( have to consider due diligence and closing cost - 224k won’t get you a million property the conventional way but depending on the market; it can get you 15-30 doors) multi- family. They may opt to aggregate funds from others like themselves and buy 100 doors ( add value, force equity... refi or sell) capture new equity and recover personal funds. It wouldn’t take many deals before the equity on hand doubles and quadruples. Honestly, everything is relative to your model. Knowing when to use what is important. Some of these instruments may take you into the end zone quicker or slower.

I have done it many ways, my favorite debt weapon is the LOC "line of credit"

@Retha Sparks

Start your journey by learning the terminology, process, and market.

Get educated, there are ways for you to start now. Commit to being proactive about your future. Your first investment property can be a lot closer than you think. Be aggressive, follow me here on bigger pockets, and ask a million questions. You can do this, if your mind is in this.

Forget what is behind you, press on towards the mark!

@Nathan Shankles

Easy: get an equity line of credit on the property.

Have it at the ready ( notice I didn’t say refinance and pull equity out)

With a line of credit you can be the bank, use it when you need it and repay it and use it again and agin and again.

Always be on the market, looking and ready for when the right deal comes along. You can find deals even in This market.

Here is what I know to be true out of experience: in the world of investing there are two tragedies. The first is: not knowing a good deal when you see one and the other not having the resource or understanding to gather the resource to buy when the good deal is in your face.

To overcome the first, you must stay active, know your numbers like the back of your hand. When you drive through a neighborhood, or someone calls you up and says “ I have a house I want to sell, you know it’s market value immediately and without hesitation. In fact, you know the market so well, you are not afraid to make your offer over the phone or on the spot.

You will beat 9 out of 10 investors every time.

This is called investor reflex ( just made that up, but I could preach about it) . Always be in the market, always be studying, no such thing as luck if you are always present. The good deal is going to find somebody you just need to be on the road.

The next obstacle you have overcome already (Pat your self on the back) you have resource to buy your next. I suggest you BRRRR. 12k/ month is easy. If you follow BRRRR, you will do it in 3 yrs conservatively.

Focus on understanding the market!

Last thing: you will lack in the areas where you lack focus, do not lack understanding or expertise. Build your acumen daily!

@John Thedford

You may be right, I'm considering the fact that this is his first wholesale deal. These forums are to create dialogue and hopefully learn. I think the numbers are not great on this deal because he is sucking a lot of the juice out of the deal by being heavy handed. Typically wholesalers are aggressive on ARV's and conservative on real expenses.

I probably wouldn’t do this deal as an investor,

Because there is not enough meet on the bone.

I myself am making an effort to build people as much as possible, unfortunately; we can’t make people honorable.

This could be a good deal for everyone involved, if greed doesn’t make it a one sided deal.

Honestly 5k assignment fee on this deal would be reasonable. At this rate, he would likely come through for the seller, the 22k he intends to make is a definitive barrier to the sale.

I definitely understand why this deal would make you mad.

@John Thedford

I don’t wholesale but I think you are being very harsh. The gentleman found a deal, and he is assigning his contract for a fee. I agree that there are many scum bags that wholesale, but you can’t categorize all people into that category. Some people need it as means to get the ball rolling. Not everybody has money to invest, this allows the barrier of entry to be a none issue.

I have never bought from a wholesaler but Iam open if the numbers work. Everything is about buying low and selling high. You don’t know that sellers situation, he may need this sale more than you can imagine.

I have a friend who wholesales and he allows the contract to be broken if the seller finds a buyer before he does. He is very established and usually sells the property very quickly.

Last, I agree with you. We should be honest and not crooks. If you can’t come through on the deal ( ie: don’t have a means to close the deal if you can’t find a buyer then you are a scammer)

Don’t tie up the property. To the beginner, have your back up strategy in place do you don’t look like a jack ***.

For full transparency, you as the wholesaler are required to disclose what assignment fee is to both the seller and buyer. Other wise you have to do a double closing where you mask the profit by closing the first deal, then closing on the sale with your buyer. ( don’t quote me, but I read somewhere that this is how it should transpire)