All Forum Posts by: Rusty Knowles

Thanks @Jeff Kehl.

Not too familiar on Hard Money so any additional advice would be appreciated. How much are rates/fees/etc?

I am looking at a house that is in the foreclosure process valued at $375k but only has $280K left on the note.

It is about to go to Sheriff Sale in the next 45+ days. I am currently in a mortgage for my house that I listed to sell today for $360K. Fingers crossed I can sell it very quickly.

Question 1 - anyone have advice/experience on catching this before it goes to sheriff sale? Its with Fannie Mae right now so not sure if I could call someone and make a deal.

Question 2 - if it goes to sheriff sale, I dont have the $280K (hopefully no more) in cash to buy so what options would there be? 

I thought to borrow the $280K long enough to buy, repair enough, and refinance back to FHA after selling my current house and then pay off borrowed amount plus fees/interest associated with that. Not sure if that is a crazy scenario I made up or is possible.

Any advice on this would be greatly appreciated.

@Simen Gundersen thanks, I will look into that.

@David Dachtera thank you, I will start that book this week hopefully. To your rehab point, you are correct. Its a little low but only because I called in a few favors. The Taxes are $800 annually and insurance around $82/month.

@Bill Gulley good points. I have been a Realtor for 5 years now and Property Management for almost 10. I agree with a lot of what you said.

@Justin Howe, I actually have read "How to Win Friends and Influence People". Forgot to list it on here. Good read, very informative.

@Michael Boyer, I will take a look at that book as well. 

Thanks everyone for the advice and anymore that you feel like sharing is very welcomed!

I am new to the real estate investment world with my first deal about to close in weeks. Thought I would give some details of it to see what everyone thought, advice appreciated:

1950 home, 2bd/1bth, 600 sq ft, $50K purchase price, 20% down on 4.99% 15yr amm-5 yr term, convert garage for 240 sq ft, new hardi siding, updated electrical, $6000 total rehab, rent for $800/month minimum. ARV $75K. Plan to refi, rinse, redo

So, my real reason for post, what book and/or weekend course best impacted any seasoned and successful investors on here that they would recommend? As of late, I have read Rental Property Investing How to create wealth...Hold Real Estate, Rich Dad Poor Dad, Think and Grow Rich.

Would love to hear advice on my deal and what my next book(s) should be.

@Hai Loc that does help. 

Yes, sorry @Hai Loc I didnt tag you appropriately and thank you for the response.

On the deal where you are asset manager, how much of your money were you required to put up and did you have the capital for that or did you get funding elsewhere?

@Jon Holdman that makes a lot of sense and thanks for breaking it all down for me.

@Jon Holdman @Jay V. thanks for the comments 

I am currently looking to work for myself and am not looking for a Job for starters. The company I work for now, as a manager, pays me well which is my concern in starting a company on my own without any payroll. The current structure on the property that is a $32 million asset is management fees to the management company @ 5% paid out of Operating from the Property, and then that property, owned by the Syndicate or Owner, is budgeted Payroll to pay the property manager (me) @ X salary. My point was could the Owner or Syndicate not hire my property management company to manage their property for X% and then I could also run that property as property manager to be paid the Property Salary budgeted payroll for X Salary?

If you are not familiar with this type of structure I understand, just curious if my initial question was even possible.

@Joel Owens thanks for the advice! Helps to give me a jumping off point and @Steve Wilcox that ties into your questions because I am asking in general for the purpose of just knowing if that type of deal even exists before I spend a ton of time working on something that is impossible. I am new to this part of the business so its a large learning curve so I dont have any actual numbers to provide as an example.

Any other advice you or anyone could give me would be greatly appreciated.

Gotcha, okay thanks for the advice @Jon Holdman