All Forum Posts by: Rick Stein

Location,location,location still holds true. Do people want to live there?.

For a flip, the key is purchase price which will determine your profit if you know your numbers

For a rent/hold, the key is financing because it will determine your cash flow. I will give on price if I can get better terms.

Have you thought of asking someone with a self-directed IRA to lend you funds at an attractive interest rate secured by a second mortgage on the properties. You needn't always go to an institutional lender.

I recently evicted a tenant like yours. I learned a long time ago that having no tenant is better than having a bad tenant. They will suck the life out of you. Get rid of him and let him make someone else crazy.

I disagree. When unemployment is higher, there are fewer buyers. Fewer buyers equals more anxious sellers which equates to better buys. It also gives you more opportunities for owner financing. I don't think you want to wait for great economic times when prices are rising. I also don't care what national trends are. I care about where I am focused. if you are going to stay in this game long term, you must adapt to all markets.

Have you looked into private money? I would create a proforma with anticipated market rents. Maybe someone would either invest in your project or partner with you for a piece of the action. There are billions of dollars collecting dust in money market accounts and CDs. These people would salivate over 5 or 6 percent. Delay the first payment four months to give you time for rehab. Make the loan as long as possible "just in case". You would need it for a minimum of a year so you can finance it with an institutional lender. Be creative!! How about someone with a self directed IRA? There are numerous possibilities.

Good luck!

You are correct. It is a reflection in his character. Just keep going!

Erik,

 I simply pay the water and sewer in my multistory and figure it into my analysis  when I buy the building. 

How much is the mortgage? Is there a due in sale clause? If the mortgage is not too large, could your down payment pay it off so owner financing is a possibility? You only discover the answer to these questions by asking them. Don't be shy. Shy gets you nowhere.

Yes, let's connect . I see you live in Hightstown. We are neighbors as I live in East Windsor. Can you contact me off line. I'll send you a private message.

This may seem like a strange question, but why do you want to invest out of state.?I also live in NJ and all of my properties are within 45 minutes of where reside and work. There are plenty of opportunities in the Garden State.I can go to them and keep my finger on them. I don't have to worry about what is going on with my property a thousand miles away. If your strategy is working out for you, that's great! I am just wondering what that strategy is