All Forum Posts by: Justin S.

ask your bank.  

I have a good relationship with my bank and they will lend me the money for a rehab but keep the rehab money in escrow and release money as they see work being done.   Of course as long as the property appraises for the right price. 

I am a commercial customer though.  No way this happens with a residential account. 

I am negotiating a MF and one of the units is vacant and a skunk got in and sprayed.  Im wondering if anyone has ever had this happen and if so what is the best way to get rid of the smell?  I want to make sure its not going to take months to get it out.

Thanks

I've always had luck trying to show sympathy 

"Is everything ok"? "It's not like you to be late".    If they feel like you are "the man" they may not mind screwing you.   If they feel like you care about them and are truly interested they will be less likely to skip out on rent.   Of course do not be soft but show compassion. It really works

Facebook is great for this.  Its amazing to me what people will put out to the public.

I once looked up a potential tenant on facebook.  He had all cash deposit an first months rent( $1400)   Turns out the last two pictures were of his bed.....covered with about, What I could count about $8,000 cash and about 10 semi-automatic weapons.  Needless to say I didn't rent to him.  Crazy!  

When you guys talk about investors how would that differ from getting hard money? 

I've never used someone that has ever asked about the progress of the property.  All they want is their 14%

I always use hard money for my down payment.  Now its at a rate of 14% but I can get it any time I want it. I take it out for 18 months and refinance or to pay it back.

 So essentially I have an unlimited supply of capital.  Not to mention I'm on m own. 

What is the advantage of using an actually investor?

Originally posted by @Galen Herbst de Cortina:

Have you done the math on whether 90k works long term? The first thing I'd suggest is making sure you're aiming for the right target- it's a big number but make sure you're accounting for large expenses like college, disability, etc.

Otherwise, I'd say you need to pick between what you enjoy (wheeling and dealing it sounds like) or early retirement. One thing I've heard a lot is to make sure to have something to retire to. Maybe get some free and clear and then look for more as your retirement endeavour.

I am hoping that rents will continue to rise....to a certain degree of course. 

 I live in Buffalo, NY . Real estate is pretty steady out here. 

 I am leaning towards the second option.  Pay off what I have and then start buying again.

I agree on having something to retire to.  I would not do well if I had the option of staying in bed all day!

I am 38 years old

My goal for the past two years has been to retire on my rental income

I am having a huge struggle as to how to obtain this goal.  I own another business where I am the main draw of the business so I need to make sure I can cover 100% of the income I make from that business and then some.  (estimated 90k/yr)   I don't believe working there less or not at all and keeping the business is an option.   

I am fighting between two options 

1. Buy as many units as possible to be able to make that 90k even while the properties still have mortgages on them.

2. Stop buying and pay off what I have now as quickly as possible and that will bring me anywhere from 89-110k per year.  This doesn't sound like fun to me but I love the feeling I get when I think of all of my properties free and clear,(I'm smiling as I type that)

I feel as if option 1 will take longer but when the mortgages are eventually paid off, Ill be lovin' life! 

I feel as if option 2 could happen sooner but then all I have is 89-110k/yr.  Of course, I could start buying again after all of my existing properties are paid off in 5-8yrs

This needs to be 80% financial decision,20% emotional/mental decision.

Thoughts?

Yeah I'm really torn. Like I said I have a few older homes and got them at a really good price. That being said I knew I was going in having to do work. I guess I always look at trying to keep my fixed costs down(mortgage being the largest) So I go for the high cash flow with a good amount of work as opposed to the newer home and less cash flow less work to do.

I tend to agree. I do own some older homes(1910-1920) They are student housing and cash flow outstanding so I couldn't let them go. Moving forward I'm trying to into newer properties but am having a tough time finding good cash flow with them.

How old is too old of a house to buy? I have an MF I'm looking at tomorrow. It cash flows great but was built in 1840 How much does that play a role in your decision to buy? Justin.