All Forum Posts by: Levi Rudder

Yes, I agree, if they are willing to learn with you and not just dig their heels in the ground and be ignorant about it, that is all you can ask for. I've had companies tell me that something isn't allowed and I had to take my business elsewhere because we as investors don't do business the cookie cutter way they are use to. Best of luck!

@Nathan Waters this is due to inexperience on the behalf of the title company. You may want to move to another company that is more familiar with the workings of investors that use retirement accounts to invest in RE. We had something similar when we we selling an asset out of our IRA trust.

@Yuriy Shepelin what is the amount that you need to be financed? Have you completed other projects like this one in the past?

@Stefan Smith depending on the amount of capital that you are looking to deploy, I would recommend either starting off with a less expensive asset of the same quality in a different market, or get multiple properties in another market so you can spread your risk without giving up return. I would also say plan on making a few mistakes along your new investing journey, and if you deploy most of your capital to obtain your first property, the mistakes may hurt enough that you give up on the investing path before you get your legs under you. I would also recommend finding another mentor to learn from as well because you can then see other REI strategies and opportunity that may be a better fit for you and your goals, compared to what your Dad's goals are. He is probably giving you great advice, but it may not be the right advise to get you where you want to go. Also, with stating that you have your own capital you will be approached by a lot of people that want you to fund their deal, just remembered you are responsible for your own due diligence and don't just go with whatever someone tells you. "Trust but verify". If you want to follow us on FB we try to put some relevant posts on there with articles we find that have good information to keep up with. NoteRehabber is our FB page. Best of luck and feel free to reach out to me if you need someone to bounce an idea off of or help running the numbers.

Levi Rudder

@Shan Keter White give me a call. I can walk you through the process and make it profitable for you, without having to get a loan to acquire the property. You would need to have the funds to do the rehab still. PM me if you would like to get on the phone and talk about the mechanics.

@spencekal yes, exactly, you become the bank for the home owner. It becomes distressed by the borrower stops paying. The threat of forclosure or helping them with a payment plan to catch up are just a couple of the ways we can make money investing in them.

@SpenceKal SFR rentals are not the way to financial freedom unless you buy, fix hold and can get a 20%~ return because of buying at a discount and doing the value add portion to get top rent. When I say flip the paper, I don't mean wholesale, I mean flip just like a house. Buy a distressed note, at a steep discountwork, work with the borrower and get them paying again and then, between the cash flow of there payments and selling the paper for more than you have into it, that can generate some very nice returns. Where in Ohio are you? I just got 20 offers accepted on notes in Ohio.

So, you can either buy a 15 year loan and have the P&I build up till you can buy another and another hoping the borrower doesn't default or the house goes down in value, or you can flip the paper instead of flipping the RE and seeing the returns much faster and rinse and repeat with the profits. Non-performing loans are a value add play similar to fix and flips or Apartment flips.

Hard money lenders will give you better terms usually with a track record with them and if you can show them what you have done in the past. But, not always a requirement if you find the right deal.

I wouldn't waste money on the degree if you are just getting one to have one, especially if you are having to get student loans for it. You can never get out from under them and the best investment that you may be to pay off the student loans with your potential profits on the flip house.

@Spence Kal I would not do this deal personally. Other than the profit, do you have any other funds that the flip will be returning from the sale or was it all other peoples money that funded the flip? The desire to have financial freedom is commendable, but there are other avenues that you can invest in to get the better returns and build your wealth. In my opinion Cash Flow is the key to getting truly financially free, you save the cash that it produces and have that to cover any unexpected repairs and you can use that cash to acquire another investment. I am about to be 28y/o and I am already financially free because of the cash flowing investment that we have and now I'm building my generational wealth through investing. It sounds like you are disciplined enough to be willing to sacrifice today for your long term goals, which is key to becoming free. What degree are you going for and how much longer do you have left in college?

@Trey Fischer a JV is short for joint venture. It's where you team up with someone and you both benefit from the upside rather than just paying someone to manage the investment for you. If you pay someone to manage your investment they make money either way and it may not be their highest priority.