All Forum Posts by: Rick Pozos

If you are going to be into it for 65k and its worth 90k+, sell it with owner financing.You will get 7%, 8% or maybe even 9% for the next 25 or 30 years.

If you paid 65 cash and get 10k down you will have 55k net out of pocket, but will be getting 90k minus the down payment, 80k, at the 9%. So your 55k investment will get you about $671 per month which turns out to be about 14% return on your money!!

I have bought a house sub to, paid the back payments on the mortgage. Gave the seller a few thousand $$ at closing. Asked my sister to get a Home Depot credit card for materials. Gave the homeowner a 2nd for the rest of their reduced equity. Did lots of the work(painting, putting in carpet, install new appliances) myself. Used my credit cards to buy other stuff needed. Sold the house and paid people back.

Hurry up and get it under contract. Make sure that you have an inspection period of a couple of weeks to get contractors, inspectors for roof, foundations, electrical, plumbing, etc to make sure it is not needing too many repairs.

From what you have said, it sounds pretty good.

Hey @Seth Baumgartner if you are too busy to look for properties, manage contractors, etc. then do something different in real estate. You are probably NOT going to be the rehabber person. Maybe look at purchasing some notes from @Chris Seveney or do some private lending to friends that are rehabbing. Maybe even partner with some friends on deals. 

When you can not do the work you either hire someone to do it or you do something else that requires less time. 

You can listen to podcasts while you walk, workout, take a shower, go to the bathroom, eat breakfast or lunch. And then before you go to sleep you can read a real estate book or look at realtor.com and see what is for sale to familiarize yourself with the market.

Throwing the idea of having money for deals is going to bring lots of crazy people to message you and maybe call you.

Talk with local friends and fellow investors at the local meetups. They might need some money and you can use local title companies or attorneys. I dont know where you live, but there are plenty of real estate investors that meet in every city. If you have to drive to get to a meeting, drive!! I just drove 35 miles from San Antonio to The BREW, one of my favorite meetups. 

Since you are a realtor you should know lots of investors that are doing deals all the time. Tell them if they ever need some help, they should call you. Ask them what they have been paying for their money.

My recommendation is do some rehabs and borrow money from hard money. Look at the docs that the title company prepares. Look and see what the hard money requires of YOU. THAT is what you should require of others that you are lending to.

I am NOT a union anything. Sorry. Did you say that your parents are buy and hold?? 

HELLO

Call them, talk with them. They should be your biggest mentors AND possibly your money partners.They have bought properties, sold properties, done little repairs, big repairs and I bet they have had a few months that they thought they were insane for doing this real estate stuff.

Meet some people in meetups around the city or in other small towns around where you live. See what they do and how they do it. Give your knowledge as you receive theirs!!

Buy what is familiar to you and close to you. It is so much easier to check on contractors and progress of rehabs when they are close. After you do some rehabs, own some rentals, THEN you can see where you might do a little better once you have experience with rentals, markets, and you have real estate knowledge in general. Dont worry if you are going to get 3% vs 4% appreciation in a certain market. You will always find a better market somewhere else.

Sounds like procrastination to me!! Just do it.

ps there is no better market. The great area this year will have lower numbers next year or the year after.

If it was inherited a long time ago, it will still have a steep tax hit. 

Grandma bought 20 acres way out of town for 10k 50 years ago. The town started moving that way. She past away 30 years ago and the value was 40k. Now it is prime suburban property worth $3mil!!

Get a smaller house quick before there is an IRS lien. Pay some money down on the 750k and make a big pmt plan.