All Forum Posts by: Matthew Paul

Once the HVAC unit is replaced , its done . Repairs are going to always be necessary , some will cost more than others . With 6 properties I would want a reserve of a minimum of $15K . Some years expenses will be low and others will be high . Just the nature of the business 

You worked with a wholesaler that also had a lending company , and it used its appraiser ?  Didnt bells go off in your head that something seemed maybe wrong with this ?  

Who can you go after ?   No one , you didnt do your due diligence .  Unless you can prove fraud . 

Just remember you dont always make money when you do a flip . 

Thats it .    

@Isadore Nelson   Those numbers sound great , now ask yourself this , why arent all the experienced investors who are loaded with cash rushing in and scooping up those properties ?

Have you ever been to that area of Philadelphia ?   If so would you walk around in that area after 8 pm ?   

I use a very usefull method to determine if I would invest in an area .   I ask myself would I live there with my family ?   

What does Baltimore offer , it has rental inspections , highest property taxes in the state , worst schools in the state , high crime rates , higher insurance rates , longer time to evict tenants , slower appreciation . And high water bills .

Properties in Balto are cheap for a reason . 

You can still find deals in the outlying counties , you just have to be first and have cash .

I am not a fan of Baltimore , my family moved out in 1974 , and I told my parents it was the BEST decision they ever made .  Been in Anne Arundel ever since and all my properties are here and doing rather well . 

Unless you really know Baltimore I consider buying there gambling , not investing .

 Its not about being kind or scaring someone , when you ask a question , you will get answers you dont like .  There are all kinds of scams and bad deals , out there and they can smell a newbie a mile away . Its the wholesalers job to make as much as they can , its the contractors job to make as much as they can .  Unrealistic expectations will cost you money , generally money you dont have . 

A very wealthy customer of mine was very good in the stock market . The best advice he gave me was ,  If you can throw 10 grand in the air and let it blow away and it wont affect your life , thats money you invest . if you cant afford to lose it , dont invest it .

Earn more money , spend more money . When buying a car people want to know what  the monthly payment will be ? I want to know the price of the car .  They are told by the bank what they can afford as a monthly house payment and they buy at the maximum . Same with the car salesman .  People dont plan to fail , they fail to plan . 

They dont teach basic fiscal management in school . And if they do its not much . 

"The Peter Principal " Says something that people will rise to the level of their own incompentence .   

Nickels and dimes add up , we recently cleaned out a house , I had a 20 year old guy helping me . Many trips to the landfill with the dump trailer . As we were moving stuff out I told him to put anything that was mostly metal off to the side , and we even cut off cords to lamps . He told me it was a waste of time . I told him just do it . Then as we went to the landfill he say they charged $100 a ton to dump . Our last trip was all the metal , we put in the steel first , and the aluminum , copper and wire last . First stop was the place to sell the aluminum and copper , 800 lbs and I got $300 , last stop was the steel recycler I has 3000 lbs that was just shy of $200 .  His jaw dropped and said you just made $500 , I told him no , I just made $900 . Because I didnt take the metal to the dump which was 2 tons that would have COST me $200 .  And the agreement with the customer was $100 a ton to dispose of the junk .  It didnt matter where or how I disposed of it .    ( Plus the hourly rate to empty the house ) 

@Patty Tower You make it sound easy , make $50k to $150K on a flip ?   If it were that easy everybody would be doing it .  Now what will you do when you lose money on a flip ?  ( happens more often than you think but no one brags about it ) .  How much experience do you have in flipping a house ?  Dealing with contractors ?  And hard money lenders ? 

If you think its like the HGTV flip shows , I will tell you its no where close . 

As far as wholesaling , you will be 1 among the many . But with a inventory shortage like now , thats a tough business .

I would work on paying down your debt first .  

If you wait for a storm , you will also be waiting for a roofer to do the work .  I would get a professional opinion from a qualified contractor , you may have storm damage already that could possibly be covered by your insurance 

@Saurabh Kukreja What makes you think rates will go down ?  They may go up just as easy . 

What would concern me is the unit you bought 2 years ago has basicly no appreciation , based on this unit as a comp .