All Forum Posts by: Brad Schultheiss

a refi isn't really going to help you out.  If you have 100k into it and it only appraised for 95 than you are short that 5k.  If you go to refi you won't get that 95k, you will get 75%-80% of that 95k. That's 71,250 to 76,000.   If you can't come up with the 5k to sell to this buyer than i don't see how your going to come up with the 24k with a refi.  

I think it will probably appraise fine.   Finding contingencies is always a good idea but I would try not to stress to much. 

I passed my kansas real estate test a while back and I need to affiliate with a broker.  I'm not looking to sell real estate as a career at this time, I just want access too the mls and be able to look at houses on my convenience. 

Does anyone know of any brokerages that don't mind hanging investor licences with a reasonable desk fee or yearly fee? 

Thank you!

do you have someone to take you to look at potential properties once you find them?   It seems to me people would have a hard time taking you serious since you're so young and talking about all cash offers.  

 I would dig deep into the business of wholesaling and get to know all the cost and time requirements inside and out.   With this information you could sell yourself to an investor and probably negotiate a marketing budget with an investor.   

The experience you would gain over the next 3 years would position you to either open your own company straight out of school or at the very least help narrow down your real estate passion.

a handyman can do most small things and if you bundle several tasks up at a time you should save money.   It's going to be difficult to find very reliable full-time maintenance employees for that low of pay.   You can make it work but you're going to have to spend time messing with training and managing them and your time is likely worth more than the head ache.  

I would try out a few handyman and just see how it goes.  They might cost more per hour but their quality will be much higher if you get a good one and if you don't like it you can always hire a maintenance guy down the road.

It is my understanding that the main requirement is intent.  If you intended to rehab a house and rent it out but during the process someone offered you a crazy price that made more sense than renting then you could do it.  This would be a one off scenario and certainly not scaleable.  Most of what I've read says you need to rent it out for atleast a year.

If you don't have the level of trust in the tk provider to believe they will do anything in  their power to keep you from losing your portfolio than I wouldn't even bother with tk.  You're trusting them with a lot of wealth and probably a good percentage of your retirement.  If you plan on holding for the long term than it's safe to say you will hit a couple down turns.  If they can't sell you on how they are going to protect you then keep on looking.    If you're worried about the tk proveders loyalty towards you it would probably be safer to partner with an out of state invester 50/50 so they have as much to lose as you if it fails.  With a local partner you can cut expenses in an emergency to cover bills till the hard times pass which in my eyes is pretty good risk management.  

Everyone's different but I'd take the rentals for a higher level of control even if the returns are the same.  If I can't get rid of vacancies I still own the properties so I can find ways to generate some kind of income to limit my losses.  If the market tanks than the market tanks.  When I'm ready to retire I don't want to hope the market is up so I can live comfortably I just want to be done.

You should try talking to the commercial lending department at the banks.  It is my understanding that with that much equity they could refi all the properties under 1 loan and they will loan to businesses if you have a bit of a track record.  Some people call 50 to 100 banks before they find the terms they want so don't give up after a handful.   Good luck!

10 months of emergency funds is more than you should ever need.  The way I look at it is I can always lower my life style temporarily to stretch that out plus if you're that worried that the money won't last hustle to get some money in while fixing the situation that's draining your account.   If it's so bad that you can't manage to generate any additional income than you're in a bad enough situation that 2k likely won't save you and if it will get a personal loan from a bank or sell something.   

My emergency fund would pay for the unforseen expenses you're saving that 2k for and if I had to dip into it I'd replace it asap.  If you're emergency fund can't cover a 2k hit it's probably not big enough.  If you have enough equity in your house you could use a heloc for your emergency fund and then atleast your saving mortgage interest which is greater than the 1.5% you're talking about.