All Forum Posts by: Pete Perez

@Raj G.

"2% points up front" means you collect 2% of the total loan up front. The HML does not return that money. The lender actually bears most of the expense of the project. In the example I made above, the HML lends $90,000 of the $100,000 project.

Hello,

My partner has a parcel in Sammamish under contract. There is currently no structure there. The lot is a few blocks from Lake Sammamish. If you are interested in the contract to purchase the property comment here or PM me for details. Some additional information on the property:

• 1.36 acres (58,241 sq.ft)
• Zoned R4 (4 dwellings per acre)
• Contract purchase price: $250,000

Thanks!

My partner has a parcel of land under contract a few blocks from Lake Sammamish, WA. We are currently gathering photos and contacting the permitting department of Sammamish to get more information about the piece of land. It is zoned as R4. Some basic information about the parcel:

• 1.36 acres (59,241 sq.ft)
• Zoned as R4
• 2 blocks from Lake Sammamish
• Contract Purchase Price: $250,000

If anyone is interested in the piece of land, please feel free to comment or PM me. I am happy to share any info I currently have, and what information I gather going forward.

Thanks!

Hey BP,

Not a question or anything-just an anecdote.

In preparation for tax season I was glancing at old tax statements and couldn't help but laugh at my younger self. I started working at 17 (2007). Between 2007-2011 I made on average $19k per year working jobs while in school. My only expenses were car payment ($189), cell phone ($65), and gas. I never talked about money with my parents. I was never encouraged to save. When I finally graduated college in 2015 I had $10k in consumer debt (not including student loans). I have no clue what I wasted all the extra money on! Probably beer and concert tickets now that I try to recall? I lived at home and most of that time didn't have a girl friend lol. 

Things are significantly different now. I paid off that debt a few months after graduating. I started saving significant portions of my paychecks after the debt was paid off, and now have over 6 months reserves saved. I track every expense and am a stickler on the budget (almost to fault according to my wife haha). I leave money every month in the budget to go do something fun, but I am much more aware of where our money goes. 

I haven't reached my financial goals yet, but we are in a much better position now. I can't help but look back and wonder how much better off we would have been if I was more aware of my finances. I am sure a lot of people have had this feeling at some point, and I can't help but laugh at younger me. My wife and I are planning on having kids in the future and I look forward to teaching them about finances. They may or may not make the same mistakes I made, but it won't be because I didn't talk to them about it. 

[End Rant]

@Tarl Yarber 

This made my day. I thought the meetup was the 22nd! I couldn't make that date, but this date I can make. Score! 

Cash on cash is a percentage. Cash output over cash input. How much money you make annually, divided by the total cash you put into the deal. It is like the first law of thermodynamics except you can have a percentage greater than 100% with real estate. 

@Tom Cafarella

That is weird, because I know of like 4 people over the last month that have gotten deals recently from bandit signs. Maybe the problem is in your area?

@Ray Thorsen

Check the laws in your area to make sure there isn't a requirement on how you choose tenants. Some areas require that first person to qualify gets the lease. Otherwise I would try to pick the person you think you'll benefit the most from. 

@Teresa DelaMater

I know that there are some HML that will only require 10% down, but you will likely pay more points. I would recommend getting pre approved before you tell people you can close with cash. Otherwise it is misleading, and disingenuous.

@Jim Kent

I'd look into rules about raising rent (if any exist). Where I am there a ton of rules about how and why you can raise rent when purchasing a property. Where I am if you purchase a property and they are under a long term lease you can't raise rent until the lease is up, and even then there are rules about how much you can raise it.