All Forum Posts by: Richard Hadley

@Joe Villeneuve

To be honest I'm glad you responded to this as I have truly valued your opinions on many of the post on here.

Just curious, are you at all familiar with the infinite Banking Concept? I have been reading and doing all kinds of research on it, but I can't seem to wrap my head around it. There seems to be many wealthy rei's that also seem to think it's a great idea because you gain the interest that you would pay on a mortgage to a bank on top of the dividends earned.

I'm throwing a question out about how to get started in the infinite banking concept and the ability to leverage one of my properties to get started, does anyone have any experience in doing this? And the other question is, is this even a good idea?

@Eric Chauvin

I'm with Mike S. On this, I have a good portion of my tenants on direct deposit, I provide the permission slip for them to fill out with their account and routing # and sign for my bank to automatically pull it from their account once a month on the same day every month.

I pay no fees and have full access to my account to verify they are not delinquent.

@Nicholas Boccella

I don't know about PA. But here in Maine, we do not have to accept it. I would contact a local attorney who has experience with it and ask if that would go against any laws for your state.

@Greg R.my concerns about a crash is how it affects the people we rent to. With the recent scare we all experienced with covid and not being able to evict for non payment of rent, what other limits will they place on landlords when we have a correction or crash? If it is anything like the correction of the great depression people lost their jobs -money and ability to care for themselves, our government had to bail th out, well with our current debt in our country and the way they printed all of this money and gave it away, I don't think they will bail anyone next time. WhT happens to investors then?

@Matthew Newsom

Residential multi units

@Matthew Newsom you don't need a college degree to get into real estate, I never finished high school and own and operate 2 very successful businesses. One is a construction company and the other is rental property.

I wish someone told me when I was younger, don't work for someone else, you will make them rich, and work for yourself, you have more control of your income than settling for a wage.

Best tip I could give you is, keep doing your research on whatever it is you wish to pursue,

And don't put yourself into debt, unless you're investing into something that will make you money.

The key is, you need good credit, because you are going to become rich by putting yourself in debt.

You need the banks to borrow money. You borrow other people's money to by something that someone else is going to pay for and it must cashflow in order for it to work.

@Greg Soon

Yes this is true, so my first purchase was a duplex that was selling way below market value so the bank was willing to finance the full purchase price, granted the place looked like a dump, but I am also a contractor and knew that all it really needed was some cosmetic repairs, I purchased it for $24,000.

It came with tenants that I ended up having to evict. But it all worked out perfectly because once I had the first tenant out, it gave me the opportunity to remodel that unit, cost roughly $2000. Tops I was able to increase the rent from $400. Per month to $900. once I had that one rented the family that was in the other unit had moved in the first tenants I evicted from the first unit. (They were all related) I had a no sublet clause in our rental agreement, which gave me cause to evict all of them. ( which I did). Perfect timing, gave me the opportunity to remodel that unit, ( again about $2000. Tops) this gave me the opportunity to raise the rent for that unit from 675.00 to 1100.

It didn't take long to save enough money to get the 20% I needed to purchase my next property. And so on and on.

I currently have 20 units in 3 years, my goal is to get to 50 and see how much time it requires me to manage them. If I feel like I can handle it, I will reset that goal to 100 units .

Don't do what I did, I sat on the fence for 2 years before making my first purchase, I over thought everything, and nothing was happening. My only regret was not just jumping in, using common sense and good math skills.

Good luck with your new business venture.

@Tracy Williamson

I have an llc, started straight out of the box with my first duplex, now I am at a point where I need to start a second one for my next purchase. I know of many other people who do it under their own name, I prefer the protection of the llc.

@Ron Brady

HI Ron,

Sorry to hear that you feel your skin color is interfering with your ability to gain wealth in real estate. Truth is, yes there are many racist people in this world, it is not limited to just black people.

My advice is don't let it stop you from taking the high road.we all have our challenges, God knows I have mine. The key in all of this is to take advantage of your strengths. I am a strong believer that if you work hard to give yourself a good name, there will always be someone who will try to do the opposite to you. I go out of my way to prove them wrong.

I am well known in my general area, I am a strong hand shaker, and I make sure people will remember me as an outstanding person. Anyone who is against me is usually because they are jealous.

I guess all I can say is, if someone doesn't like you because you are black, then they don't deserve your business. Do business with people who are real, and can appreciate someone who is trying to live the American dream.