All Forum Posts by: Michael Moikeha

I wouldn't hold any properties at 10% interest. That will come back to haunt you in the future. That is only useful for flips in my opinion.

I would use it for Down Payments for HM loans on multiple flip properties. 

So if you are looking for conventional financing, I am wondering what exactly you are looking for. Just the funds for the downpayment? You wont/dont want to get hard month for that. technically conventional loans would require that the money you use for downpayment is not money that is borrowed from someone else.

I believe what you should be looking to do is create a JV partnership where your father is the silent money partner and you are the one who does all the work. This way the DP is not borrowed money but it belongs to the JV Partnership and in the JV Agreement, you state the terms of the payoff for your father.

Find out what would be a good investment for them, and the set those terms.

Sign the contract first. Take that contract and sell that contract to an investor who has experience for $5000 - $10,000. Get your cash out and you have no money out of your pocket. If nothing comes of it, the property is sold at auction and your purchase agreement is useless. I would not quick claim the property up front but sign a and/or assigns type document that you can assign the quick claim deed to another investor, that would be best. 

It also depends on how much work the property needs. It may sound like a great deal right now, but if you have to put in money to fix the property up, then lose money when you sell it for closing costs and commissions, that profit disappears quickly. 

Welcome to Bigger Pockets! I know I would not be where I am with my business if it were not for the information and the connections I have made on Bigger Pockets.

One of the things that I look at when I am deciding upon a hold property is what type of tenants will be renting from me? Sure Cap Rate is important, but constant turn over, evictions, and repair costs are often a bigger loss to income versus buying a lower cap rate property that rents $1500 range. 

Its personal opinion for sure, but it has worked for me. I am renting a home for $2700 in an area where most people get $2300. We did no paint or repairs to the property before the tenants came in, but we told them if they wanted to paint, we would pay for the paint and they can choose the color. If they didn't want to, we would just paint it all white. We have given them the ability to treat the place like their home, and in turn they have taken care of the property and improved it.

I know this is slightly off topic, but felt like it was worth while to share.

Hello! I invest in the Portland area myself, and it is a competitive market for sure! There are many things you can do to start with little to no money, but the start is always to do some marketing! Talk to everyone you know, you work with, you walk by that you are a real estate investor and looking to buy homes.

Once you actually have a potential property, then you come back to your investor network to help you make the opportunity a deal!

Originally posted by @Account Closed:

They will probably need to crowdfund a new "project" with newbie funders who will end up funding on a project that won't be protected from default.

I second the "WALL OF SHAME" but since people can always change their names etc, pictures should be posted as well. People should never do business without a face to face meeting, and at the least, a Skype meeting where they can visually evaluate a potential partner. 

Originally posted by @Account Closed:

I just received a voice message from Andy Luick asking me to call him if I want to hear his side of this story.  I have no skin in this deal or relationships with any of the players, so I'm not interested in talking to him.  He's free to tell his side of the story right here.  @John Pruner @Andy Luick @Rick Baggenstoss

 I agree. You're not the only person here with questions. The basis of this whole Bigger Pockets platform is to learn and grow and share information. The fact they do not want to share it here just adds to the negative cloud surrounding them. 

@Joel Owens

Im glad you had an answer for him! I did't know where to start myself, but I know that I wouldn't want to start building till I had a tenant line up. It would be horrible to spend all that money building it just to have no tenant want the location.

Are you happy with 6%? That is the important question. Any investment is worth it if you are happy with the returns and happy with the product. You could easily make more returns with a model that is more aggressive.