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All Forum Posts by: Paul Bowers

Paul Bowers has started 18 posts and replied 250 times.

Post: Legalities Of Buying Second Home Under Owner Occupied Loan

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

Have considered actually moving into the house?  Both you and your wife move into the new property and rent out the current home.  After a year you could always return back to your current house and rent out the second one.  Or better yet buy a third house and move into that and rent out the first two.

Post: Introduction post in Rochester, NY!

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

There is one the first Weds of the month at Johnny's if I'm not mistaken.  I haven't made on yet but plan to.

And welcome aboard

Post: Buy this 100$ seller finance or NOT?

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

Unless I'm looking at something wrong this deal looks horrible.

Rents: $825 x 12 = $9,990

Expenses: $2000 taxes

$700 insurance

$990 management

$5040 mortgage (after interest only period)

$8,730 total yearly expenses

$9,900 - $8,730 = $1,170/12 = $97 monthly cashflow with absolutely no consideration for maintenance, CapEx or vacancy.

What am I missing?  How is paying 30% over market price and 2-3% over market interest rate for a property with no cash flow a deal?

Post: How to get financing for an investment property?

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

You're looking for $20,000 max.  Who cares about points and rate?  Lets say it's 4 points and 12%.  That's a total of $2,000 for 6 months, $800 in points and $1,200 in interest.  If you're looking at a deal that $2,000 makes a loser maybe you should be looking at a different deal.

Post: Who do people assume wholesalers are bad or dishonest?

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

Wholesalers are no different than any other profession.  There are great attorneys, car salespeople, insurance salespeople, landlords, etc..  There are also ambulance chasers, slumlords, etc..  Wholesaling carries a stigma because of the high number of uneducated, unfunded folks seeing what they think is an easy way to make quick, easy money in real estate without any of their own money or risk.  They lock up peoples properties, raise their hopes and then bail when they can't close.  There are also very reputable wholesalers that put houses under contract and close regardless of whether they have it sold or not.

You just have to decide if what you are planning to do is legal, honest and ethical.  If it is you'll be one of the exceptions.  If not, you will perpetuate the stereotype.

Post: Textbook/book recommendation for beginners (apartment complexes)

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

This is the place.  There are literally 3 million posts, a huge number of which are written by some of the most successful investors in the world.  A PHD is meaningless in this realm.  If you have questions, ask.  Listen to the podcasts, watch the webinars.  I'm not saying don't search out books but you'll never find more information anywhere else than here.

And welcome to the community!

Post: Hard Money Lender - This is What a Scam Smells Like

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

Tell him to take his $980 out the amount he was going to wire transfer.

Post: How long should it take a HML to respond with an answer?

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

First off, it's never pointless to look at the house.  Even if you don't get approved you will be able to watch what the house sells for and when it gets relisted for sale you can look and see what updates they did and how the numbers went. Education is NEVER pointless.  Maybe you can't get funding but if it's still a great deal, get it under contract and wholesale it.

 As for the question on the turnaround time, I'm sure every lender is different.  I would think it would depend on your experience, how much skin you've got in the deal and of course the numbers itself.

Also, this isn't the only lender out there.  If they say no that doesn't mean they all will.  If you are willing to give up that easily this may be the wrong business for you.  Hang in there, if the deal is that good, someone will want to be a part of it.

Post: Using an LLC. Pros and Cons??

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290
Originally posted by @Thomas S.:

If you really want to protect yourself have adequate insurance and stop buying with cash. Paying off properties places a huge target on your back regardless of whether you have a LLC or not.

@Thomas S can you elaborate on this?  If I buy $1,000,000 in real estate cash then have no money left in the bank or I finance $1,000,000 in real estate but still have the $1,000,000 in cash in my account how does one make me a bigger target than the other?  Either way I have the same net worth.

Post: No pet policy - Maybe exception for birds in cage?

Paul BowersPosted
  • Real Estate Investor
  • Macedon, NY
  • Posts 251
  • Votes 290

Is this a single family or multi?  I would be slightly more inclined to be okay with it in a single but in a multi you have a few concerns.  Firstly, will the thing chirp all day and night and drive the other tenants crazy?  Secondly, where do you draw the line with the other tenants.  "They have a bird, I want a caged snake".  "They have a snake, I want a ....."  It could be a slippery slope.