All Forum Posts by: Rob Lane

My best advice to anyone new doing this is to jump in and get your nose bloodied.  I know so many people who have read everything etc. their biggest challenge is taking action.  Have you found your first investment property yet? 

That's when you open your first beer! 

I don't think you can get a conventional loan on investment property only on owner/occupant.  The numbers sound good if you can get the $1500 month rent then it would be nice cash flow.  Break even at the current rent.  Try this, pay cash for the property, do your cosmetic fixes, go to your local bank, pull out a 15 year note (I always like to do 10 or 12), pay back your retirement savings.  If the house appraises for $145,000 which is the low end of comps, you look like you are at the 80% loan value.  Numbers look like they work.  Hope this helps  

But your missing out on all the fun.  The tearing out is much easier than the rebuilding process.  I usually hire friends and family for these projects, buy lots of beer and food and we always have a blast.  You could easily tear out a 1000 sq ft house in a weekend.   

My biggest suggestion would be to do business with a small non national bank.  Your relationship with your banker is just as important as your contractors and your accountant etc.  You eventually want to establish a line of credit funded by the equity of your real estate portfolio.  That way you  can pay cash for homes and don't have to worry about financing every time.  Good luck and let me know if I can help.   

I am about to start the same project in OK. starting with city planning.  Stay tuned. 

Do yall live together in a residence you own now?  Can you buy this investment property  as owner/occupant so you don't have to put so much  down?  Do you have equity in your current home?  Sell your car, have her buy you another one.  I love creative financing. 

Partnerships are bad.  Don't do it man.  Especially in this business.  Trust me. 

I have all tenants have checks in my mail slot by 6pm on the first of every month.  If they do this they immediately get $50 off their rent.  If they are past 6pm they pay full rent.  I call it the discount rent policy.  I started it as I was getting checks on the 1st, the 3rd, the 7th, etc. and was costing me so much time in making deposits, I come from sales and know that incentives drive people to do better.  This has really helped me.  I also give an additional $50 dollars off in December if they have been consistent the entire year.  You can see my contract at millionairemaintenanceman.com under forms.  See if that helps you.  Good luck

East coast government regulations.  Glad I do business in Oklahoma.  Love it when government interferes with us entrepreneurs