All Forum Posts by: Rick Pozos

It's kinda the way things work. Low cap rates because you dont have to do anything, just collect the 4% or 5% like a CD at the bank.

10% Properties are going to be more involved. Get rid of crappy tenants that have been there for 20 years and still paying $500 per month instead of $1500, but it's a $hit hole. These will take some cash to get up and running.

Maybe look for properties that are a little higher cap rate AND might have some room for rent increases or ADUs or some other way to boost income. THAT is how you are going to get a great deal. YOU have to find ways to increase the value of the property.

You have to look at plenty of properties and find the one that will work for you. If 4% does not work for you, go on to the next one. You just have not found the right property.

AND YES, some people just ask crazy stupid prices hoping that someone will pay for it. Keep walking.

I have purchased and sold properties where the wrong lot description was put on the deed. I basically bought or sold the wrong property. Mistakes happen. They found the mistake. Go fix it with or for them. It is your obligation!!

I am sure you signed papers that say that you will fix any errors that were made, just like this case. I am sure you were joking, but they do not owe you anything to fix mistakes that were made in paperwork. 

Karma baby!! Smile, fix it, keep going.

Hey @Erich Hatch if you find someone who will lend or purchase a 30 yr loan, let me know. I would love to find a person, not a company, who would lend for 30 years or even 15 or 10 with a balloon.

I have friends and family, but even they want to be paid back in a year or two. I guess it is just marketing to people with longer horizons than 2 years.

I can not see how a title agent would not want repeat business. Just make sure you ask if they will allow for assignments. 

Hey Scott,

You want at least a 15% discount from Retail price, probably more. You also want to subtract the repairs from the already discounted price. The 30k in repairs might be 50k or 100k in repairs from a licensed contractor. Make sure your numbers are right before you go into contract.

Hey Andrew,

It sounds like you are doing pretty well. You put money aside for retirement, live the good life, kids get pretty much whatever they want, spouse gets new stuff all the time. That is all great. 

I really dont believe people need to sacrifice. I think you might need to have a serious heart to heart talk with the spouse and teenagers. Let them know that they are going to have to start paying for things themselves. Expenses are going to have to be cut, just a little, maybe 10%, 15%. Put the 401k money from now on into real estate. Instead of contributing to retirement at work, put that money into the next house. Keep it up.

Keep the car until it hits 100k miles instead of 40k miles before you get a new one.

If a man has 10 pairs of shoes in the closet, thats plenty, women 30. My wife had over 50. I just told her, "I am not trying to control you, and I would never say that you can NOT buy something. Just really think about what you are doing and do you really, absolutely need that next pair?"

Just be a little more frugal in life. 

ps I dont think you need to be creative, just cut back "un poquito"

Hey @John Salcedo do you live in SA?? Could not tell from your profile. Wherever you live, get out to some local meetups. Talk with some members and see what things people look for in buying, renting, selling. Talk with others to find out the ins and outs of investing.

You might be able to get your lender to do a partial release of the lot from the mortgage. They may want 10k or 50k or whatever to release the lot from the mortgage. They may even want an appraisal to verify that they have plenty of coverage on their loan. 

I would start with, "If I paid you 10k would you release the extra lot so that I could build on it?". They may come back with a higher number or they may say NO. It is worth a try.

Think of the house as a retirement fund. You are putting a little money into it every year. In 12 more years it will be paid off with only minimal input from you. You will have some great cash flow after the mortgage is paid off. OR think what kind of equity you will have. A paid off house that is worth $XXX. That will be some big number.

There are investors in small towns and large metropolitan areas. They all make money if they buy right. They lose money when they do not know the area and they dont know what the right price is that they need to buy at.

What city are you in @Arvind Mohan? That is probably a good city to invest in. It might be higher priced or lower priced, but you have to do what you have to do to make it work.