All Forum Posts by: Jeremy Horton

@Alex Wise

Dollar cost averaging. Same thing I do with index funds. I bought, am buying and will continue to buy regardless of market conditions.

Real Estate is the same. You have some greedy sellers right now though, so don't fall for that trap. You're here to start with a base hit, understand what you're doing, then make only great deals.

If it's not a great deal, then I'm out. I'm not one to buy a market prices then turn it into a rental with mediocre returns.

@Christian Requejo

Let me get this straight...you want to use other people's money, be in charge, and not partner with them. Makes sense

How about starting with something small and learning and growing so you know what you're doing first

Several good responses in this thread - We do the same, the units are rented as is and the repair does not fall under a safety or health hazard so we cannot repair it as this time. 

I have a few small MF units that operate on 100A ~550sqft

My 1600 sq ft house has 200A, replaced from 100A when I bought it (home built in 1975)

I'd imagine 150A is fine, especially if it's new, you just won't have a lot of leftover for additional. Fine for a rental, personal house I'd want more 

Roll with it if/when you find out you need more

Well there's a lot of different methods, off the top of my head:

- Sheriffs Sale - go to your local sherff's site and look for sheriffs sales

- HUD - check for homes in your area on HUD

- Foreclosure sites - Auction.com. foreclosure.com etc - I believe you need a realtor to represent you

- Contact the realtors in your area that are constantly listing foreclosure houses - I see foreclosures in my area, and I see the same 3 realtors always posting them. I emailed the guy to try to get first access 

Then HOW to actually buy:

- May be able to do conventional financing depending on the condition or MAY need cash or a HML if you don't have cash readily available. Also may be able to find a commercial lender that will lend to you based on the ARV. We have a local one that will lend up to 85% ARV, essentially funding part of the rehab (if not all) for you.

- Also be prepared to connect the utilities - this means you'll need an inspection to the major systems - gas, electrical, plumbing etc. Most foreclosures have had the meters removed, the power line cut etc. This makes the actual pre-buying home inspection hard to do. Assume 75% of anything water/gas related will be leaking and assume about 5k in electrical work at the minimum 

This depends on a few things - for passive real estate investing if you want to take deductions from your personal W2 it's going to depend on 1) REP (real estate professional status) - ie: need to work 750 hours plus on RE and work 51% of your work time on RE AND 2) Your income (they subtract the amount you're allowed to deduct based on your W2 income - they subtract 1$ of your deduction allowance for every $2 you make over 100k at your W2 job...so once you get to 150K you can't deduct anything from your personal W2 job, you can only pass it on to later years, deduct when you sell etc (the maximum allowable deduction is 25k). This is for long term passive real estate investing - not flips, STRs etc

Part of the reason I got into RE was the tax benefits (I already pay 40-50k in only FICA taxes a year) so I figured out that the government effed me again pretty quickly. Now that has to do with your W2 income, you can always deduct ordinary and necessary expenses from your LLC income

So in sum, the government will find a way to eff you again and discriminate against you based on your income. 

Seems like a lose lose - best bet to me is to take the lesser of the two "loses" - if that makes sense

Leave them all a negative review, eat it, don't use them again, give them a bad reputation, and move on - that'd be my plan at least 

We do $250 + $25/month

Some people don't allow pets, some do relatively close to that number

There's a few guys I like to watch - Graham Stephen used to be a lot better - it's all marketing, they realize they make more money from the classes/mentorships/paid subscriptions than actually investing in real estate, so they go for the clicks and the views over everything else. 

That being said - I think there is some truth to the RE market dropping, we see it happening in real life (at least in my local area). Now I wouldn't say the sky is falling...for most people, but there's gonna be some people that lost big time buying at all time high prices (you just won't hear about them publicly)

I would suggest starting out by doing a little reading

This was just not a well thought out post by you OP