All Forum Posts by: John E.

@Brian Burke Why flip this house? This house could probably make a lot more money for you if you just flipped it to a Hollywood director for his/her latest horror movie. LOL!

Paranormal Flipping Activity: The Stench of Litter

Coming to theaters soon!! 

@Jose Diaz No problem buddy! :)

It's definitely a long and hard road sometimes @Jose Diaz . It's great that you're helping out other people and unlike myself (it's rather stupid of me) taking note of how you are feeling. Stress is something to be expected when going down this "road less traveled". 

I probably don't know much about this life, but one thing I can predict is that not all days will be sunshine and roses. A lot if us know it, but we don't understand it. Trace your REI endeavors back to your 'why' and motivate yourself again.

~ Plato said that over 2000 some odd years ago. Being able to be honest with oneself is a big component of it. Kudos to you for that! 

I haven't heard of any, but I definitely want to bump and hear any developments in this thread. 

Hey @Andrew Edwards ! I can see that the name tagging system is bugging you. No worries! It was so frustrating for me at first, but I promise you'll get the hang of it.

1. What is the best way to get funding?

A: Watch these videos- you'll get great answers. 

See: https://www.youtube.com/watch?v=E1GfiEZDf7A

See: https://www.youtube.com/watch?v=TElR17z2FwQ

2. How do you know about whether or not to flip or rent it out? 

A: It's tricky bud! It really depends on the deal. Let me explain. 

Would you rather have 50k in your hand today or $100 a month and have to deal with management problems? 

Scenario 1~ I'd rather have the 50k today than have to manage a rental for a measly $100 a month in arguably NOT net cash flow and personally managing it. Long term rentals are KEY to building wealth in real estate, and if you don't have them then you have no recurring income every month. Without that cash flow and the ability to inventory deals then you're going to have to constantly find deals. 

Scenario 2~ Wholesale a deal for 5500 dollars today or receive $350 in net cash flow monthly? I'd go with a well managed $350 month cash flow (darn good margin for a single family) than be short sighted and pocket a few bucks. The cash flow from the rentals is virtually tax free whereas the wholesale would be taxed as earned income, AKA job money. You'd make back the gross cash profit from the rental in less than 1.5 years and you can hold on to it forever. The tenant will pay off any loans on the property and you will see the monthly rent checks rise over the years. It's a wealth building blue print.

It's all a matter of opportunity cost and measuring out which option is best for your goal.

You'll know what to pick based on plan.

~John 

@Wendell De Guzman Holy cow! There are a whole lot of people headed towards Nashville, TN in the coming years! I'm assuming you've been in that market for some time- How has the inward flow of new folks in town affected property values and your real estate business?

@Jeff J.  I am 1000% sure you should do it. 

Knowing that you care enough about your tenants to go about cleaning the apartment in such a diligent fashion, I'm sure that getting rid of the smell won't bother you too much. The "reptilian" part of our brain located at the back is associated with our deep emotions and the "fight or flight" feelings we humans get. Smell is something that we unconsciously pick up and it is strongly associated with our emotions and past sensory experiences. 

I was advised by a more seasoned investor once that if the smell is bad in the unit then the tenants/buyers will associate the house with uncleanliness- no matter of it's an irrational judgement or not. I'm sure  you wouldn't want that buddy!

I'm not exactly sure about the procedure or the costs, but I'm sure it'll be worth it. :)

Thoughts?

Hey @Dan Chapman ! Nice seeing you on here... Again. I just wanted to welcome you again formally on your intro thread. 

As @Jon Holdman stated there are a lot of different ways and complexities when performing this type of transaction. 

Assignment basically means to sell your rights to a contract. When signing your contract you want to put something that says'Name'and/or Assigns which indicates the property will be bought by you or a party that has been assigned the rights to the contract. This can be done with  one close.

A double close is a transaction where you close with the person you are buying from. This can be visualized as the "A" to "B" (seller is A & you're B). In one room you will close & go into another closing with your buyer after that. This is often referred to as the "B" to "C" (you're B and the final buyer is C). 

I'm still just a teen, but those are the basics as I understand them. Laws are also very different in many areas. There's a popular thread I read about new laws that could have drastic implications for wholesalers marketing properties they don't own w/o a license.

@Jerry Puckett is definitely not discouraging you at all. I loved his podcast and other work on the site. You do need to spend some more time learning. I'm still in the learning process as well, so you're not alone buddy. :)

Best of luck to you!

Hey @Darren Nichols ! I love the enthusiasm. I can just feel your  excitement and joy radiating through my computer screen, I love it. Something tells me you're going to love fishing for your own wholesale deals when you get out there full-time buddy!

And.... HERE'S TO FREEDOM AS WELL!!!

Getting out of the rat race is a big step for you. I'm a newbie and I haven't done my first deal yet, but man o' man, I get so motivated reading threads like this one!

Sean Terry's podcast is something I need to look into. 

How did you go about finding your property Darren? Please tell me all about how you successfully got this deal?

Can't wait to hear more Darren!!! :)