All Forum Posts by: Matt H

Here's what you do:

1) Go buy Carlton Sheets No Money Down course off ebay for like $40 bucks. So that you can study the chapter on "Creative financing".

2) If you own a house, perhaps you could either flip it for a sizable gain. Then just rent a house or apartment to live in just temporarily until you get a building. Then you'll have all the cash you need each month coming from your building to shop for a much nicer house to live in later on. Alternatively, you could refinance your house to unlock some cash if you don't want to move. Or find a friend, or partner who might be willing to lend you the money. And use the cash you just unlocked as your 10% downpayment to buy an apartment building. You only need about 10% down to buy an apartment building. Just look in the yellow pages under "mortgage brokers". Call a few up. Tell them that you're a realestate investor and that you're looking at buying an apartment building. Ask them what's the maximum they would lend on a building. Perhaps have a like a listing sheet of a building that's for sale so that you can give them some details if they ask for them. So you find a listing sheet on the mls of one that has say 20 units going for say around 1m or something. That way if they have more questions about the building you can give them particulars off the listing sheet. It would have to be newer than 1960 by the way to give you a better chance at high ratio financing on it. I guarantee if you call around you'll find a mortgage broker than can give you most of the money you need. Like perhaps up to 90%. But say they come back and say we could lend up to 75% or 80%. No problem then you just get the seller to carry a small second of like 10% or 15% and you're still in business. Because 80% first + 10% second + your 10% equals a 100% done deal. That means you only need say $50,000 or $100,000 to get started. Because whatever amount you can come up with you can times that by ten and that's what you can buy.

3) Now alternatively you could try this. Go on your local mls or commercial mls service online to look up what apartments are for sale. Doesn't even have to be in your state. Just has to be what you'd consider half decent. Then look up the listing realtors information. Create a "Letter of Intent to Purchase". That's basically a simple letter stating that you'd be prepared to buy the building based on the terms you outline in the letter. Such as price, financing, closing date etc. Then what you propose is that the seller of the building carry a second mortgage in the amount of 25%. And you propose that you'll get a new first mortgage for 75% or possibly assume the first. Then you would customize that letter and make it look professional and fax it off to each realtors listing. Here's the thing it's just a letter. It's not a purchase contract. But the realtor who receives it will run it by his seller. Say the seller doesn't need all cash at the time of close. Then they might very likely be totally fine with carrying a second mortgage. Try to make that second mortgage for 5 years. If you send out enough of these letters I guarantee you'll get a realtor calling you with a seller agreeing to carry a second and wanting to write up a formal offer. So you write up the offer subject to financing. Then go back to the mortgage broker with the deal. Tell them you need a 75% (or more) first mortgage as stated in the contract. The broker will then go find you your first mortgage. The key with this technique to just contact tons and tons of sellers. Like just shop until you drop. Because you're just looking for the seller who will carry a second. That's the number one priority. Don't even worry about the building. If it's fully rented I guarantee it's cash flowing. So just forget about it..capeesh!!

Remember you need money to buy property, but whoever told you that his has to be your own money out of your own pocket was full of s-h-i-t!!! Remember, 75% first mortgage + 25% second mortgage = no money down deal. And remember 75% first mortgage + (more than 25% second) = you get the building, and you get cash money at the time of closing. So what are you waiting for!!! Get that letter of intent ready and your fax machine running non stop, because my friend you're going on a shopping spree!!!

Well I never said to not try and find a good deal. I just said don't go holding out and waiting around for the "best deal" because there's no such thing as the best deal. Also lets say you found a deal where you could get the property no money down but it was netting you just 30 dollars. Well for starters your returns are infinite. You got property appreciation, and you're one rental increase away from getting into some more decent cash flow. But more importantly than anything you're "off the starting blocks". You now have the confidence and know how to buy investment properties and so you'll be well on your way to making out even better on your next deal. I know so many people that never get off the starting blocks because of the fear of making a bad deal. When in reality the most important thing is learning how to and gaining the confidence to just get your first deal done.

I learned a ton from one guy, who's a buddy of mine. It's really funny because I didn't even seek him out. We just became friends through some other mutual friends. At the time I didn't even know he was into realestate. So does that mean the old saying is true, "when the student is ready, the teacher will arrive?". ....but I think you should seek out a mentor, I just lucked out.

I own a 15 unit apartment building. What happened was our market soared over the last couple of years. Now the apartment is worth double what I paid for it. So I have a ton of dead equity sitting in that building.

My plan would be to sell the building. At market value I should be able to get about 1.5m for it. Then I could payout the first mortgage leaving me with about 900k. With that I could take the money and buy a much larger property out east where realestate is still cheap. I calculated that out east I could buy a building that would be cash flowing at around 3times the rate of what I'm getting right now, possibly more. Really this would make the most sense but I thought I'd get your input on it.

Good idea? Bad idea? Any thoughts?...

Because I hate to sell but I feel like I'd be foolish not to cash in on that dead equity. Like there's about 900k of it just sitting there not making me anymore money.

I removed conditions yesterday. I'm not gonna flip it anyway though, just live in it. I just want a decent place to live, as I think the people at the public library are getting tired of finding me in the middle of the night making a home out of the bathroom stall floor.

Sounds crazy.

Consider this though. If you have to work for a living that means your trading your hours or your labor for dollars. The moment you stop putting in hours in your day job is the moment your cash flow stops. But if you focus on realestate and get some places bought and rented out then you'd have a monthly stream of renvenue coming in which will continue regardless of how many hours you put in. Rentals are basically on autopilot continuing to make money for you. So if I were you I'd focus on trying to buy your first apartment building. Even flipping houses isn't as good because you still have to trade hours for dollars. The moment you stop flipping homes is the moment you have no additional income coming in. So I'd try to get an apartment pinned down if I were you. Like for me I own my own business which does well. But I may have one more deal on the go right now, that if it goes through I'd be able to already match the income stream of my regular business from my apartment buildings. And this would only be my 3rd. And that's a lot of cash, like well over five figures per month. Actually if you found just one small 20 unit apartment chances are your cash flow could be getting close to 10k per month after all expenses and debt service. And if you factor in apreciation of the building you'd be making perhaps another 5k per month. So that's why I'm saying like getting into just 1 apartment building could turn your situation around and give you enough cash flow to not have to try to work so hard to make ends meet every month.

YOU ARE CRAZY!!!

Here's what I would do if you want to just get into property fast:

1) buy carlton sheets course "no money down" and listen to it during drive time to and from work.

2) set up a numbered corporation, don't even waste time thinking of a name. Just pick a number, who cares! Or do what I did, use the initials of your name to make up the first word of the corp like ACG Investments Inc or something.

3) Go to best buy or something or online and try to buy all the epesods you can of "flip this house" and "property ladder". Watch them so you can see how to flip a home. Watching for the mistakes that people make on the show and what they do right.

4) Find your local MLS listing service online and browse properties there.

5) Find the best neighborhood and find the worst home in it.

6) Buy it, and do some very basic cosmetic renovations. NOTHING MAJOR. Just very basic cosmetic improvements that are cheap. Like I wouldn't even spend over $10 grand in improvements. If you're thrifty like buy stuff from wal mart you should be able to redo the whole house for way under that.

7) List it with a realtor to get it back on the mls.

8) Then you should wind up with a healthy profit. Like maybe $50k.

9) Do this like twice to build up about $100k

10) Use that 100k as a downpayment on an apartment building. That 100k will act as a 10% down payment on a million dollar building. You should easily be able to get financing from an experienced mortgage broker to do this.

11) Find a building that shows good cash flow and as many units as possible within your budget. Chances are likely with that you should be able to find a building generating at very least $5000 in spendable cash after all expenses. And if you really search you might even find one doing $10k.

12) So then you'd be left with a building generating about $120k per year in cash flow and perhaps another $50k per year in appreciation of the building. Then you can retire happily ever after.

Hello, I'm looking at some older buildings. They appear to be built early 1900's. Like I think 1930 or so. If you were to buy and you got an building inspection that would turn up any major problems right? So as long as that came back reasonably okay then wouldn't the building still be fine? I know banks don't like it but we don't know what old is here in North America. There's properties in Europe that still sell all day long that are hundreds upon hundreds of years old and they still rent them out.

So what do think would you buy an older building like say built in 1930? Why or why not? Because I'm looking at one now that I'm considering.

How about you use: Whore Investments Inc. Then when you go to get a loan at least the bank officer will get a good laugh right.

here's a few pointers:

1 word is better than 2
2 words is better than 3
3 words is too long
a 12 year old should be able to spell the words you use
A apears at the beginning of Yellow page ads.
Your name should be something that relates to what you do
Your name should tell people what you do
Be sure not to copy or infringe on someone else's name or brand