All Forum Posts by: Mike W.

That is the basic crux of the housing market. It is and will always be driven by new home owners. Run ups can be sustained and wound up through smoke and mirrors like investors buying up a bunch of pre construction homes and bad loan programs, but the affordability for new buyers to get into housing runs the market.

How would you flip a property without being classified as a dealer?
You either are an investor or a dealer...there are only 2 options that I know of...

To be an investor, you need to own something with the intention of holding it as an investment.

You cannot unilaterally take him off the lease. He must agree to be removed from the lease if that is what you intend to do. As long as he wants to stay, it is a domestic issue...she needs to get the police involved if there is problems on that front. If she wants him out, she needs to get him out legally, your hands are tied unless there is a court order.

It seems to me that all the arguing going on here between self employment and running a business.

Obviously, People run successful businesses and obviously, people are successful as one man self employed businesses. Are either a sham? Is one easier than the other? I think those are the questions each person needs to ask themselves.

The answers are neither are a sham, both can and do work everyday. Is one easier than the other? The truthful and only answer is, it depends on the leader(s).

You are exactly right Mark...Do what suits you best.

Every style of investing takes a specific personality to achieve continued success in. Being able to find which one you are good at is an accomplishment in itself.

In my world(minnesota), and in my experience and those of other MN investors, Gatten's system is only good for an equity share...anything else it is not worth the effort and paperwork. And again, you have to have a specific personality to partner with sellers(liers) and buyers(also liers and usually previous or future tenants) which I don't and won't ever wish to have.

Good luck to you if you have the personality to make partnerships with those types of people work. And do collections on all the judgments you end up having to pursue.

And to answer your question, the owner(s) of property have the right to take out a HELOC or refinance whenever he wants to. The RTO tenant is paying rent and agreeing to purchase the property in the future for a value giving at the beginning of the agreement. Any RTO tenant stupid enough to give up front option money for a deal like this, should be ready to lose it if they don't buy it later. I don't see why that would be an issue.

Your SLC friend sounds like their deal was more than a 2 party deal, which also takes that special personality to deal with partnerships. Too bad for his deal. Every deal is different...I have had a pretty bad one myself.

I will stick with landlording, light rehabs and a few REITs to keep my RE invesment portfolio empire going...I enjoy collecting checks every month and being in complete control of all my property without question from any "partners".

It takes a special kind of person to allow the seller to remain part of a real estate deal in any way. Or to have any kind of partnership with a tenant(which many RBs were and will be again).

Like I said before, the only reason I see to use the NEHT is for an equity share, for everything else, there is a cleaner easier way in minnesota to do it. Every state is different, but here, lease options hold up in court and are cheaper and faster to procure. There is certainly a place for this, but not for the average investor and definatly not for every transaction. Even Bill agrees with me on this. There is always many ways to work a deal.

I don't agree that a good reason to use the NEHT is for the legal benefits as there are not many folks willing to go through the legal menusha and costs to win a case(none that I know of so far) which I am sure they would win eventually, whether or not it is before you are broke from legal fees is another issue.

For some people...I know hard to believe, but for some people all they can visualize is debt relief. This means, if you promise to pay their paymnets, yhou can have their stuff. People will do this with cars, boats, houses and the like. So, if some schmo wants debt relief now and you can provide it, you can have their house for 10 bucks. Maybe their car, boat and motorcycle too...

I just returned to a full time J O B after 5 yrs of RE.

I did RE pimpin and loan origination for my day to day cash flow and grew my portfolio.

Now, I returned back to a day job back in Feb and am very glad I did. Feels like free money...I get paid every 2 weeks whether or not I perform well.

If/when my portfolio income becomes double what my salary is, I may decide to go back to a full time self employed status. Otherwise, leaching off somebody elses net worth is fine with me...

The 1031 exchange is used for property held for investment purposes. In most cases, a flipped house, even if owned for more than 1 yr would not qualify for a 1031 exchange. Not saying you can't do it, but if you got questioned by IRS it would likely be disallowed.

Flipping is just another business...

Rentals are an investment. Make money while you sleep if you will, or an annuity for retirement. The property management is a business just like anything, but depending on how you run the business of property managing and choosing tenants, it can be more or less work than rehabbing. However, rentals are capital intensive to start out. You can only buy so many properties without running out of money. That is where your creativity comes in. The more creative you are willing to be the larger your portfolio can become. Just make sure you are aware of the balance between creativity and dishonesty...