All Forum Posts by: Jackson Pontsler

Welcome Nathan to Bigger Pockets there are alot of good groups here and I wish you the best of luck in your journey.  Hopefully we get the chance to meet in person soon.

@Jay Hinrichs I understand as I stated in my previous point the legality is always questionable and I don't wish to bash anyone.  I think we can both agree that the key to success in real estate is: your relationship with whoever you deal with.  Doesn't matter if you're broker, flipper, property manager etc if you can't build meaningful relationships in this buisness you will have no long term success.

Contract Assignment is a fine way of getting started in your investing career.  THAT IS WHY BIGGERPOCKETS TEACHES IT.

Where WHOLESALERS get in trouble is that many don't know what they are doing.  

Wholesaling has been recently talked among real estate gurus as a way to invest in real estate without putting any money into the deal.  This is true but some bad practices that give wholesalers a bad name are:

1.  Not putting money in escrow.

2.  Not understanding who they are selling to

3.  Are not upfront with the sellers that they may assign the contract.

4.  Legality of the practice (You'll hear alot about that here)

5. Not accurately determining the ARV and the PP

Now I've seen enough bashing forum to know what will be happen.  I throw in my 2 cents that there are many bad wholesalers just as their are many bad agents.  The problem is their is no board to hold wholesalers accountable. @Eddie Garcia  The way to preserve your repuation is the zeal, honesty, and trust you build with everyone you meet.

Thanks @Jeremy Z. let me fix that

More than likely your mortgage will go up. I don't know what your first mortgage amount was but let me break it down.

Usually 20% down payment

1st mortgage 150*.8 = 120k mortage

Refinance mortgage 200 * .75 = 150 k mortage

I don't know how much time has elasped but lets assume you paid 10k in mortgage over the course of getting ready to refinance

so you now have a 110k principle left meaning you can pull out 40k for your next property (150 - 110)

Your mortgage payment will be higher because its a higher amount you financed 150k vs 120k but also more than likely your interest rates have gone up and refinancing to pull out money allows a new interest rate to be locked in.

Hope this helps!

There are meetups that happen every month here in SLC!

There is one happening tomorrow: Wholesale Meetup

There other ones too I'll PM you them.

So many things here.

1.  IF YOU ARE USING AN AGENT THIS IS A GREAT TO MAKE HIM WORK FOR HIS MONEY.

2. Other ways of making your offer more accpetable is removing financing conditions (ONLY USE IF YOU HAVE CASH OR HML)

3.  Offer flexible closing time frames.

4.  Play an emotional angle with a video or letter to the seller with your offer.  

5.  Submit your offer again and again each month, you never know perhaps on the of the tenants creates a big enough headache that they finally accept your offer.

@Allan Anderton

 Is see where you the confusion is, look back at this sentence:

"I don't know how much time has elasped but lets assume you paid 10k in mortgage over the course of getting ready to refinance."

Most buy and hold investors wait a year or 2 between purchases.  This means that if you have a traditional loan you are paying the principle down each month.  Because no time frame was introduced I look the liberty and said that 10k principle had been paid on the 130k principle of the loan leaving 120k principle left to be paid off.

Now if you are just jumping from purchase/rehab to the next one then (within months) you won't see really any reduction in the principle becuase you haven't made that many mortgage payments, not to mentioned that the bank probably won't count the coming income from the rental for at least the first if not first two years the rental is cashflowing cutting the buying power you as an individual has.

@Matthew John More than likely your mortgage will go up.  I don't know what your first mortgage amount was but let me break it down.

Usually 20% down payment

1st mortgage 150*.8 = 130k mortage

Refinance mortgage 200 * .75 = 150 k mortage

I don't know how much time has elasped but lets assume you paid 10k in mortgage over the course of getting ready to refinance

so you now have a 120k principle left meaning you can pull out 30k for your next property (150 - 120)

Your mortgage payment will be higher because its a higher amount you financed 150k vs 130k but also more than likely your interest rates have gone up and refinancing to pull out money allows a new interest rate to be locked in.

Hope this helps!

@Emilio Garibaldi Jr I understand why you brought up the question.  You're torn between wanting to be a good guy and not being taken advantage of.   NO MATTER YOUR DECISION YOU WILL NOT BE ABLE TO PLEASE EVERYONE.  These hard decisions come because you are now in a buisness and not only that you're self managing your properties.  

Legally and logically you can and should send her a notice of default and if she continues to default keep charging (out of the security deposit if that is written in the lease) but eventually this may lead to eviction.  WHICH IS A PAIN TO DO BY YOURSELF!!!!

THERE IS A BIG QUESTION YOU NEED TO ANSWER

1. IS IT WORTH KEEPING THEM AS TENANTS?

Maybe its hard to get good tenants, maybe this is their only issue, or maybe they aren't good tenants and this is just another nail in the coffin.  You need to determine if $80 a month is worth keeping them or not.

Here in the forums you will probably hear keep charging them till they are evicted.  In the outside world you will be told to have compassion because they are having a hard time in life and you can afford $80 a month.  This is when you decide which side of the line you will be on.  

There maybe other options that can be worked out that may compensate for that $80 but I can't judge it from this far or by the limited number of details provided.

Here's my advise to everyone that is new to REI.

1.  DETERMINE WHAT YOU WANT!  (A flipping company, rental portfolio, apartment building etc....)

2.  DETERMINE IF YOU CAN START THERE! (you may not be able to start with apartment building)

3.  DETERMINE STRATEGY TO GET YOU THERE! (Wholesaling -> Flipping -> Apartment building)

4.  FIND SOMEONE WHO IS ALREADY A ROCKSTAR WHERE YOU WANT TO START AND WORK FOR THEM/ BEFRIEND THEM.

5.  LEARN THE ROPES FROM YOUR FRIEND TILL YOU REACH THAT LEVEL OF SUCCESS

6.  REPEAT 4 and 5 TILL YOU GET WHERE YOU WANT TO BE!