All Forum Posts by: Mickey Harrison

Thanks for the responses. I'll do as suggested, keep an eye on the prop and see if the price comes down to a more favorable price.

I was recently taken back at thanksgiving when 2 family members approached me about my RE Investments.
Them- "so did you buy that other property?"
me- "yep."
Them- " well, you know, if you're ever looking for investors we have some money to invest"

When in the past the conversation went like this.
Them "you know if you ever need help with money(get in a jam) you can always call me and your aunt."

As you can see the difference in tone.

Now to the scenario/question:
I was thinking, for the properties that I want to hold I would agree on an interest rate and maturity of loan with these members.

To do this would you have them do a mortgage 1st position (actually file) if I buy something out right. Or just have a notarized contract and make payments?

or if i find a seller finance deal and my PM funds are used for a down payment.Do I give them the 2nd position mor. or just have a notarized agreement between us?

For the flips I would ideally rather pay them an interest rate. However, 50/50 would be more civil since it's family members and I would have no skin in the game just my knowledge and minimal labor.

What have you all done in the past? Sorry for the ignorance but I've only done conventional borrowing and didn't think anyone would approach me/I would need PM til at least my 5th rental.

So I've never bought a REO but there's one that's been for sale for about 3-4 months where I recently purchased a SFH rental.

The REO
Listed @ 90k
according to records this is what seller owed when foreclosed on. (i looked them up myself)

My property
Purchased in Sept for 62.5k

The REO is similar to mine but from what I can see the exterior it's not as well kept -it's wood/vinyl siding looks dingy- I have stucco holding color well.
-The roof is a 20yr & looks old - I have 35yr that's 6 years old

I haven't had a chance to see the inside since the REO agent hasn't called me back.

*My Thoughts*
I Def don't think the house is worth 90k since I paid 62.5. I was thinking about making an all cash offer of 30-35k considering the exterior and fig the asset manager might be motivated since it's end of year. The offer would be contingent on inspections of course.

For the REO buyers out there is this offer even worth making or would it just be laughed at? what would you consider doing?

my last deal was from CL. I tend to find most people on CL seem to be a little more open to creative tactics...thanks for the app info going to def check it out.

#36 and #33 are the two i really like. I voted on the website

I'm no expert but that deal looks like it would fit my portfolio. In fact I did a deal very close to the one your looking at in sept.
My place was a SFH rents 1330. I paid 62.5k comps came back 80k. My interest and insurance is lower than what you have but if I was in your shoes I would do it.

yeah just realized that after i typed my response at 3am. DOH

From what I understand most CFPs focus in equity markets.

Is he against your Re Investments cause you want to do flips (trade houses)? If so it could be a logical thought cause flips are more of a short term strategy. Same as trading stocks(key word TRADING not investing in stocks).

However, if he thinks you should be moving from less speculative investments and into more conservative/cash flowing investments ask him what he would think about owning rentals (that provide a nice yield) and don't let him sell you on it's to much work. So is the stock market! You can do the same like you did with the stock market hire someone else to manage the investment. Or like someone said above If he's not big on RE investments and you would rather be really hands off. Ask him about REIts. There are REITs that are giving nice yields but I think actually owning rentals are far greater if they create CASH FLOW. Not only would you get CASH FLOW but also build equity and appreciate.

part time

New Orleans has one going on right now started 9/20 i think it ends on 9/22/ and there will be another in oct. civicsource.com