All Forum Posts by: Robert Howard

@Andrew Johnson what you said is another GREAT strategy that I hadn't thought about and it has made me think bigger, than what I have been in reading your post.  At 1st I just wanted 12 properties in 10 years and two of them were to be used for their equity to pay for my children's college if they decide to go, if not to give them $100K a piece, so they wouldn't have to start from zero and be able to make their way to freedom.  But now I know I want more properties to be able to pay for college and fund my lifestyle in 18 years.  Thanks.  Also thanks to everyone else who has answer my post.  BP has been a great tool for me.  Best of luck with all of you all ventures!!!

I watched an video by @Brandon Turner that talked about a property that he purchase and put a 15 year mortgage, so he would be able to refinance it about the time his daughter is ready for college.  My question is will it still be a good idea if interest rates keep rising because our economy has gotten better.  So that the interest rates 18 years from now is 9-12% from the bank.  I'm curious because I was about to embark on an investment for that reason. I think its a brilliant idea, but that crossed my mind. Any opinions would be greatly appreciate.  Also any ideas if the interest rates are that high, what to do to make it still work out.  

Thanks for the help.  I have learn so much from BP.  I really appreciate the responses.  I cant wait to get close and get ready for the rehab.

@Christopher Phillips thanks for the answer. I know all these things are minor, but wanted to know if I had tools for negotiations, because they can sound big and dangerous. The numbers still work and believe I can get COCROI of about 14%. I have never brought an REO and wanted to know if I had some leverage. Thanks again. I will just keep the report for myself and give it to my contractors. I guess I could have save that extra expense. I should have check on BP before I got the inspection.

Need help. I'm in a contract to buy a property. It is at a good price now, but I had a inspection and there are some issues. We have a busted pipe, no outlets working in kitchen, black mold in wash room, espestice siding, and other wiring issues. Can I negotiate for a GREAT price with the bank? If so how do I do it?

I agree with Larry find an Insurance Broker.  They have the ability to write for multiple insurance companies even ones you never heard about.  I didn't know Medlife did home insurance until I met my broker.

@Rory Cummins thanks for the information. I will conduct business as usually.

1st let me thank this group. From the knowledge I have learn from you all. I have refinance my free and clear property and use that cash to get a decent line of credit. That I'm currently working on getting a turnkey property that will cash flow on the 1st day. Also made an offer on a 2br 1ba that I waiting to hear back from. I'm so excited about reaching Financial Freedom. I do have one question. If I'm buying a REO do I still need to spend the money on a title search.

@Marcia Maynard I have used the rental calculator and it gave me a COCROI of 13% and about $90 cash flow. So the numbers are good for me. I actually just called to spots that I seen for rent across the street from his property and the owner wants $625. Both are 3 br 1 bath with a carport, but the mentors is brick and the one I call looks to be siding. So his rent is seem to be priced right. The reason I say that because I talk to a person walking in the neighborhood, who advised he pays $525 and his buddy pays $480. The reason I put it in the Pro is for the exclusiveness.

@Nathan Gesner I recently just met him at the end of February.  Where we live is low-income for the most part, but there are better more expensive areas.  We are still working together to help me get an understanding.  I looked him up in the tax assessor when I 1st met him and it look like his 1st purchase was around 2011; which was this particular property.  He advised me he wants all his property to bring in more than $700 a month and this one is under-performing.  I haven't done any real digging as of yet.  I'm trying to gain opinions 1st.  He has about 8 properties so he isn't the most seasoned mentor, but he has been kind and given me great information.  He pointed me to the local bank that he deals with, and I was able to secure a nice line of credit with them.  I had been going bank to bank get no(s), but of course I was going to big banks.  The banker I talked to, I later name drop after the paperwork was over to see what she had to say.  Her words were that "I have picked a great person to me my mentor and he knows what he is doing."  So he has been very helpful to me thus far.  He just close on some properties that I plan on helping him rehab to grow our relationship.  Comparable sales in the area range from $45k to $15k these are within a 2 year mile radius.  Like I mention earlier our area is a poor area.  So there are a lot of rentals and a lot of these houses where built in the 1950's.  I can afford the payment for the property and with it being rented it will be more than affordable. But before I make a decision, I did plan on requesting a copy of his lease and go by and talk to the current tenant.