All Forum Posts by: Michael Lee

Hello and welcome to a great part of this site Christophe!  That might be the only place in California to make a reasonable offer.  A negative equity property can take a long time (like a year) to close on and you usually do not find out into just days before closing you may be told "no". Other than the massive paperwork you might not know where you stand for 60 days.  getting to even talk to a decision-maker can be difficult.

You might wait until the seller gets more motivating with a pre-foreclosure letter and you might be able to make that go away by your offer that includes bringing them current at a highly discounted price.  You can try to make them a proposal now but I don't think they'll do anything until they get that pre-foreclosure letter. 

You might be better off waiting and regularly touching base so they remember your name at that critical time.  They may make a decision to sell before that ugly letter arrives so keep in touch and hope they remember you when whichever time comes.  Having such a large amount of negative equity and they could call you before that mean letter if you feel positively about their market value that can be more appetizing with a decent offer over their high negative equity.

Good luck to you!

Sorry about but I hit the wrong button too early.  There are other ways to increase your rent payments by on-site amenities, it's accessibility on it's frontage/or primary road, it's location that is close to a good accessibility to many businesses, and the parking that they get or have to use.' or any other value-add item. 

I was also going to tell you why you should believe what I say.  I'm 61 years old and I Have about 30 years of construction management experience as well as a broker license in Texas for about 30 years too.  I'm also a college graduate with honors in business that emphasized real estate.  I was born and raised in Dallas, Texas.  Unfortunately, when I was 54 I suffered from 2 serious medical problems and I've bedridden ever sense but I have spent much of that time learning how to become a real estate investor while not working.  I could tell you much more but, hopefully, you believe what I've said is believable.

If I can help you in anyway that you think is possible, please contact me through this site which I am on just about every day.

Good luck to you!

Hello and welcome to this site Nick!  I am a little confused by you saying duple sand renting out four units from it.  my first thought was to suggest looking for a 3 or 4 unit place which pay all or at least some of your rent and still be able to make the debt payment.  One of the best ways to improve a unit by increasing the number of units or bathrooms without increasing the slab size.  By doing that you should be able to raise the rent and possibly the sales price depending on the demand.

The best way to make more money is to be prepared to move to the hot areas and by buying small apartments and working your way up to make enough to be able to hire an experienced Property Manager or a Property Management Company to take care of the daily needs, both maintenance and occupancy,  that is experienced in that area or type and will report you regularly on what you need to properly oversee their efforts and the properties financial status.

One good thing is that many smaller apartment complexes are owned by Mom and Pop.  They are more likely to provide you with the financing.  Just show them on paper how they would benefit by doing that like the more money and possibly their tax liability by spreading out their income.  Be creative that benefits them too.  One way would be to have 2 loans  that gives them the cash they need and reduces your debt payment in a 3 or 5 year note to cover that down payment they need  GIVES THEM THE CASH THEY NEED NOW AND A SHORTER PAY-OUT ON THAT 

Hello and thanks for this question Brian!  I have been listening to a man down in San Antonio that use to have about 15 rental homes and they almost totally broke him when he was able to ask for and get a higher non-refundable deposit,  make the spread between the rent and the debt payment, and often they would make and pay for their own maintenance and improvements, and often they would not take their option and enabled him to do the same thing again.

Even though they started out leasing, they tended to treat the home as theirs even though it still belonged to him.  His mentor told him many other good things and how to make more money.  He could sale his homes at premium along with the rent payments by favoring good people that had been disapproved by a bank.

He also learned about selling his notes and still make money by selling and renting his homes at a premium.  You have to be willing to take this risk but I believe it will pay off.  Maybe it is because it is fairly new or not very popular.  He would also set up a maintenance deal that had them pay for the typical maintenance until it was over $250.00 or a higher amount they could live with.  I think the longer the time is before their purchase option, the better.

Good luck to you!

Hello Angie!  Thanks for visiting this site and using Forums to ask such a common question that we don't see near enough!  If I were you I would consider a home equity loan or a private person loan if the bank gives you a hard time.  Just improve it as what you find in that subject area and what the demand people want..  You might have to pay for several studies that will tell you if there any age problems like Asbestos, Lead Paint, and any environmental problems.  You might get a city building inspector anything they might be aware of or they check before it's permitted or passed in that subject area.  Just make sure you speak with an experienced building inspector in that subject area.

Since you have decided to rent it out , just be as economical as you can when you finish it out but be smart with any decision is made that impacts the maintenance cost.  Your decision may impact the long term costs.  When renting a property instead of selling take a different approach in the way you finish out.  Depending on your relationship a neighbor might finance when shown on paper how they might make more money than the bank is paying, either for them or a family member.

Shop around for anything that costs,  I hope some of this helps you.  

Good luck to you!

Hello Albert and thank you for deciding to be more visible.  That is an important step to make and hopefully, you are gaining more confidence with your learning.  If you have not gained that yet, you probably will.  I've been a member of this site for about 5 years and if I wasn't still bedridden and not walking yet I would probably have taken some action which is one of the next big things.  I do not know if you have listened to him alone yet but I have been listening to Brandon for at least 4 years on his own show.

I have had plenty of time on my hands since I had my unexpected medical problems when I was 54, just 2 days before my scheduled preventive head surgery to prevent my brain annurism which I had plus a stroke.  I was lucky to be at home and my wife was there and probably lucky to still be alive and being still taken care of by my wife.  She is obviously getting tired of me and I'm lucky that she is a computer programmer and has gotten a big favor by her boss to help me out.

That is enough about me, I could probably write a book about my experience and I have not mentioned how proud I am about my 22 year old Daughter and that she has one semester before her college graduation at the University of Arkansas.  She has made The Dean's List 3 semesters in a row and it's about some kind of Engineering that I don't really understand.  One more thing right now, we share the same last name  and the spelling of it too!

Let me just say that there is one other item besides learning you must have, and that is bravery.  That is what I usually see that it is what it takes to be successful.  You need it to be successful and that one little thing is really a big thing you need to be successful at real estate sales.  It's that as well as continual education and creativityis what it takes.  If you contain those two things you will be successful.  

If you are too honest it will hurt you too.  I have had to understand that to become successful for many. especially those that use the Internet their way to become successful and do it by taking advantage of others and know how to be successful by making emotional or fearful sales.  This may be hard for you to believe but that is the way most of us are grown up and have been brainwashed.

I'm not just a dumb young man.  I'm a 61 year old man that has done much learning for the last seven years.  That includes reading a book about every two weeks,  and using the Internet 12 to 14 hours on the Internet each day, 7 days a week for over 7 years and still recovering slowly.  I have about 30 years of construction management experience as well as having a real estate broker license for about 30 years too.  I also graduated from college with honors in business which emphasized real estate.  I was born and raised in Dallas, Texas.

If all of that does not convince you that I know what I know what I'm talking about, nothing probably will.  If you would like to know anything I can help you with that you think I can, please contact me through this site because I am on it just about every day.

Good luck to you!

Scott!  Thank you for your kind words!  I'm looking forward to learning more from you and your guests!

Hello and welcome to this site and asking your question Derek!  Just so you might think that I know what I'm talking about is that I m currently 61 years old and could be thought of as opinionated.  The first thing I would suggest is to know all of your 401K options, which you may already have.

Would your company allow you to put all of your 401K money into a non-taxable account and not just in a tax-deferred account?  In other words, can you get the tax taken out now instead of owing it later if you retire and want any money?  There is a minimal taken out minimum clause that the government has now.  I think it starts at 691/2 years of age.

You can then get funds out that may not be taxed or penalized if you need them or are subject to the minimal withdrawal.  The tax is not going down from retirement funds.  They might just go up.  You maybe a brainwashed government worker and trust the government too much.  They want to take your money and do not want you to save all of it.

I would try to save at least $100,000 for the getting into real estate not including anything for marketing that varies from what you decide to do and the economy at that time. You might need %5,000 TO $20,000 or more for marketing.  You might see a 401K account favors the stock market, the employer tax savings, or the long run positive effect to the government collections.

It's mostly depends on how you see the government and/or the employers and if they really do anything for you positively or just their own pockets.  Remember, that a 401K account is just a piece of paper made out for you.  They do not represent any cash you can get today. You might see if you can borrow from it, when it's due, and can you set the rate?  This might be another good reason to have a tax-paid 401K account. 

You may do better keeping your money outside of the 401K account.  The presentations they do not show usually all of the fees they are charging and that usually takes your real return down very much.  I don't mean to sound so negative but that is currently how I feel.  It maybe because of my being bedridden for over 7 years from some medical issues I had that were totally unexpected at age 54.  I'm lucky because my wife has stuck with me and our daughter has turned out so well and she has only one semester left at the University of Arkansas.

Making as much or more money in your savings is kind of like real estate in that it may take a little more work and if you have that time.  Since I'm bedridden, I read a book about every 2 weeks and some of them effect me more than others.  

One guy I listen to regularly on YouTube is a man that owns more than 4,000 apartment units and pushes them pretty hard and talks much about how good apartment ownership can be and discusses the importance of saving $100,000 before you get started.  He tends to push you to invest with him and how apartment buying and selling is the best way to go right now.  I think he just turned 60 but and he has alot and is very dedicated to his work and family.  He has said he is expecting to make about 150 million on this year.

A few more things about me that may help you to believe in what I say.  I have about 30 years of experience in construction management and about 30 years as a licensed real estate broker license in the state of Texas.  I did graduate from college with honors in business that emphasized real estate.  I am from and raised in Dallas, Texas.

Good luck to you!

Hello and welcome to this site for your questions Jill!  Right off the bat I would say to never ask for a Pro Forma.  It's nothing but a dream and nothing actual.  You should only ask for the last 12 months that contains all of the income and expenses by the month in detail, not a summary with nothing but totals.  Ideally, you only need the last 12 months unless  you are not planning on not make any changes.  Any portion of a tax return may not be the actual numbers you want to see.  Many of them are not the actual numbers and are prepared to help the owner.

I would take a look at what that subject town shows about the zoning and not just depend on what the owner says.  I agree with your question about any building repairs, especially any major ones.  The same goes for the mechanicals question.  I would ask to see any of the lease materials so you know all of your obligations and the rent you should be collecting and for how long.

 Before I bought, I would have that clear title as a contingency clause in the purchase contract that has no penalization statement in it that allows you to say "no" when it is checked by the Title Company or an Attorney's office.  Even if you have to pay for it, it should be looked at by an official, maybe with the subject city inspector or a referral from someone you trust about the environmental question.  

This may not be necessary depending on the age and location.  If you do this, use someone that is a local and is aware of that subject city's laws or requirements.  That last question is good too but I would not totally rely on the current owner and check with a local professional service or verify it myself.

Who the hell is this guy anyway and why should I rely on his answer?  I am currently 61 years old and have about 30 years of construction management experience and about 30 years of having a real estate broker license in state of Texas.  I'm a college graduate with honors in business that emphasized real estate.  I was born and raised in Dallas.  I hope that this fulfills my words and I hope this helped you in some way.

Good luck to you!

Hello Scott!  That is a good question.  If I had my choice it would be to hear more about Partnership formation and legal ways to raise money.  Before I started learning from BP and some other places about 5 years ago after having a couple major medical problems that made me bedridden ever since I turned 54 (I'm now 61) I have spent most of my time learning about real estate investment but I would like to hear about Partnerships and raising money to invest in real estate.  Before I had my medical problems i had experience in construction management and real estate brokerage licensing so the basic learning was fairly easy. Thanks!