All Forum Posts by: Mike Dorneman

@Victor Luna I buy them with cash and fix them up. Then after you get them rented out, you can refi them and get your cash back. I’d be happy to meet up to grab a coffee some day and discuss.

@Victor Luna Hi Victor, I do all my business with Luzerne Bank (across from the old Radio Shake on Rt 93. Keep in mind the loans are commercial so you’ll need to have your business established. They are a great bank to work with and they are very fast to close.

@Kathia L. The LLC is used to keep your personal assets separate from those of the business. It’s not designed to hide the owners identy.

@Gregg Heminger congrats!!! Hardest purchase is now behind you.

@Lamont Newsome what area of Jersey are you targeting?

@Lamont Newsome Man, I sat in the bench for about 2 years! Since then I’ve been running though! I have a great friend who encourage me to finally do it. This house met all the “rules” you hear about on the podcast and the renovations were all cosmetic which I was comfortable doing myself on the weekends. After that deal, I became much more confident and I’m closing on my 9th house next week now. Do you plan to do the work yourself, sub it out, or buy turn key?

@Lamont Newsome bought my first deal in March 2017 for 24k. Put 5k into the renovation. Rented it out immediately for 845/month and that tenant is still in there. I just refied the house at 68k and took 54k out of it for another deal. 😁

@Jackson I. Sorry for the delay. I just wrote up my own 3-5 sent email letter explaining that my wife and I would like to talk about buying their property... cash deal... 10 days, etc... I send them myself and hand write the Owners name and address.

@Thomas Ferreira Jr. You can follow the sales price and the work backwards on the numbers. If you don’t want to wait, go on Realtor.com or Zillow.com and search your target area using the “recently sold” filter. You can then run your numbers based off that sale price and determine if the deal is a winner or not. I often do this then send the analysis to my realtor asking her why She didn’t get me that deal! “She’s loves those emails” 😂😂 One thing to note on your calculations. Don’t under estimate capital expenditures, vacancy rate and rwmo costs. I see new investors breeze over this all the time and it will always come back to bite you. Something will break / leak, you will go over on your Reno budget, things will take longer than expected and you will have some vacancy at some point. Plan conservatively and worst case, you have extra cash in the savings account at the end of each year that you can redeploy into your next deal.

@Lamont Newsome watch the taxes... not just what they are today, but research the historical (10 year) trend. Make sure your not buying a deal that’s due for a tax assessment next year that will blow all your profit. Not sure where in Jerseybyou are looking, but PA is a much more investor friendly state. I’m in PA, about 50 minutes down interstate 80 from the Jersey boarder. The price and deals you can find are night and day. Good luck