All Forum Posts by: Michael Mulrooney

I have to agree with all cash. I think you may be too anxious and I am not sure I would buy a home and take on more debt to pull cash out (borrowed money) to pay off your car. I see where you are going with this and it is a good thought but cash is king. I would work to pay off your car and then begin saving for a down payment on the home.

FYI...I don't see it listed but have been burnt a few times on Air conditioners and Furnaces. I always add them to the rehab job, because those are expensive items to replace. If they are in working order then you have saved a lot of money but be prepared to replace them.

Your first few deals you almost have to plan on doing a lot of the work yourself. The numbers don't always stretch far enough to pay contractors to do the work. I have been doing this for 13 years and I am just now lettting people paint for me.

Don't get caought up in one property. There are many more out there and probably for a better price. I have found that if I don't feel it in my gut then it probably isn't a good deal. Remember, you make money on a property at the time of purchase, not at the time of the sale.

I am not sure I would add fuel to the fire buy purchasing an investment property until I had my finances in order. A proeprty can drain you financially and emotionally if you are not careful. One mistake can hurt. I would suggest paying off your current bills before I got started. BUT, if you don't want to wait, hard money lenders and owner financing deals are still pretty common. Just make sure your rent will cover mortgage, taxes and insurance.

You can find a lot of information in books stores that you can pay thousands of dollars for from TV infomercials, although I used to watch Carlton Sheets every morning before I would go to work. I would get motivated before I walked out the door from watching him. I would definitley begin saving as much money as you can and possibly start by purchasing a home that you could live in. Maybe a duplex that you could live in and rent out the other side. Many people have taken this route and were able to live almost for free because of the rental income from the other unit. That is what I would do if I were starting out again.

Just be careful! There are a lot of people that would like to get their hands on that money. If you join your local REI group, wait a few months before taking the advice of the individuals. Don't let them know you have the cash. Just begin conversations that you are wanting to begin investing and many of them will begin to tell you the areas where you live that would be the most profitable. You will then begin to learn who you can trust in the group. When you decide to take the leap, start with something small to se eif you like the business. It's not for everyone!

I don't do a lot of creative finance investing but in ordinary investing, I would say some of the biggest obstacles are:

1. Finding cash or equity that can be used for down payment money
2. Not everyone has good credit and I have found that is very important.
3. Creative finance can get you into a lot of debt if you aren't careful because most of the deals requires large dollars being leveraged.
4. Finding the right deals. You may make 30-40 offers before someone is ready to let you purchase their property at a discounted price.

Just my thoughts.

Mike

You must be a fan of the Ky Derby. Glad you have been able to enjoy the event if you have been to Louisville, but I agree. This is much easier than fighting the traffic around Taylor Blvd at Derby time.

Sounds like it worked out very nicely. Is Landchasers a company in Indy or is it just another name you use for a bird dog?

That was an excellent deal. I have been a little reserved about the area that I can find the $4000 homes.

Thanks! I am looking forward to it. I have never really used a forum like this, so I am still trying to figure out how to post things and find my way around the site.