All Forum Posts by: Joe M.

I'm not sure Joe, my family lives in Las Vegas, but I've been traveling to different countries since I retired in 2012, my residence is in Puerto Rico...currently I'm spending time in Colombia.  

I started investing in real estate in August of 2012, in the Midwest, I've never invested anywhere else in the US.  On those properties I'm up 100% (nominal) in appreciation, additionally 12% per year in cash flow.  Outside the US I've invested in South America where I've made about 30% compounded annually since 2015.  

Hope that answers your question,

@Joe M. How ya doing? Good question

First just wanted to make sure equity is understood.

Let’s say the market value for a house is 100,000

The owner has a mortgage for 80,000

The owners equity is 20,000

Now that equity is defined check this out: of the owner had a mortgage for 100,000 he would have 0 equity. Let’s say you need to buy the house for 50,000 because it’s in bad shape. Well the owner owes 100,000 so there’s no way they can sell it to ya for 50,000

@Kerry Baird. Thanks for your positive reply. I am saving all the cash from the rent to increase my safety net just incase something unexpected happen. I am also saving one of my paycheck every month so I can save and buy my 5th rental house.I hope I am doing the right path for my business.

@Blake Garcia how did you find a private money lender I trying to a purchase a property for $25k

@Joe M.

At that amount I'd suggest a 20 year. It gives good debt pay down and still solid cash flow.

My personal example I purchased a house for 25k in 2012 and financed 80% with a $200 payment. My note is now up for renewal. I have it paid down to 7k. I'm going to borrow extra 13k back out and use it for a next investment. I'll borrow back to 80% of current value which is up and still have the exact same cash flow from the rental.

The cool thing about private money is that it’s 100% up to you and the individual giving you money. Don’t think about “what’s common”, start thinking about what your private lender needs. Do they have a kid going to college in a year and they want tuition for the first couple years? Do they just want some extra mailbox money each month so they can go live in Hawaii? Are they looking to be an actual partner in your deal? Many approaches but it all comes down to the individual’s needs!