All Forum Posts by: Mark Bookhagen

Hi @Gina Chang  and welcome! Read like the others have suggested, but to answer your question:

Real estate is all about leverage. Use mortgages to maximize the amount of assets you control. Using leverage, you can buy FOUR $80,000 properties with $80,000 in cash (25% down + you'll need to find a little extra cash for closing costs). This allows you to reap the NOI, cash flow, AND the appreciation from $320,000 ($80,000 * 4 properties) worth of real estate instead of a "measly" $80,000 in real estate had you paid cash. What a difference!

If you do quickbooks online, you have to pay for each set of books (ie each property), which is too much $$$. Look into the actually software limits of how many businesses you can set up.

I thought I'd share this for those of you who are just getting started...

I put a duplex under contract the day after I looked at it because I knew it was a good deal. It was FSBO. All appropriate riders, etc. were attached. We agreed on the price, and I was completely transparent on 100% of the terms/contingencies. The contract was basically ironclad. However, in NYS there is a 3-day atty approval period. During that time, the seller got another offer (a little higher and all cash). They ended up disapproving my contract so they could take the other offer. Legally - "okay." Ethically - questionable at best. It would be nice if people stuck to their agreements, but just know they might not have to in your state.

The 2% rule uses GROSS monthly revenue (not cash flow). Your percentage should be much closer to where you want to be if you use Gross Monthly Revenue divided by Sale Price. The 2% rule is a very rough guideline as it doesn't take into account your particular costs. It is a good rule of thumb though.

Is there a way to assign a contract without the other party knowing your fee? (I don't have a real estate license.) Note: New York State. Thanks BP!

Autocorrect is killing me. Sorry... Dante.

Best of luck Donte.

A couple ellipticals, a treadmill, and a tv. Now you offer a gym! Put a sports drink and water bottle vending machine in there, and now you have an extra source of income.

I think you may be trying to force this assumable mortgage idea. The time you use it is when the current mortgage of the seller is a bit lower than the purchase price. Normally, you'd make up for the difference between the purchase price and the current mortgage with a cash "down payment" to the buyer. With only a $30k mortgage and assuming you aren't going to put $170k down, I don't think this is the spot to use that strategy. You are going to need a regular mortgage anyway unless they are willing to hold the note for the remaining $170k (less your down payment).

Also, with a heloc you can pay it back with the proceeds from the sale until you need it again. You only pay for it when you are using it and you don't have to keep reapplying for it like you would with a refi. It's just there waiting for your next flip while you are finding the next deal (and you're not playin interest I it).