All Forum Posts by: Loc R.

Seller finance is no reason to get into a bad deal...if you can't figure out on paper how this deal puts money in your pocket the moment you close, it's time to look for another deal...

My personal experience is this: I am NOT a good long distance landlord. I am a good local landlord.

That being said, Pasadena is very fair to landlords. Los Angeles (proper), OTOH, is very tenant-friendly. We are talking adjacent communities/cities here.

At my price point, I don't deal with crackheads or trash/scumbags/leaches. I get working professionals looking to become homeowners one day.

My goal with this type of rental property is to find more of them at a discount. This type of rental property retails at 4-5% cap rates, which would be fine if I was just looking to preserve wealth, but I'm still trying to build it.

Marimar: Taking it slow would probably be the best approach right now. Read, learn, network, and figure out what is best for you and your husband given your resources, time, and strengths.

Remember, NO deal is better than a BAD deal...

Earlier this month I sold/closed on a property that was more of a headache than anything else. At least it's off my "to-do" list.

I just had an offer accepted on a 3-note portfolio, and I have a seller literally begging me for an offer on another note.

I had a very productive dinner with the SEVP/CCO of a local bank, which I am certain will lead to something good.

Finally, I had 2 family members who have done deals with me in the past approach me with some more money they "found."

At the very least I would start by contacting the owner of the other property and try to get a pulse as to where he/she is with respect to selling. Who knows where the conversation may go...

Equity Trust will allow you to lend on an unsecured loan through your IRA. I don't recommend unsecured loans, but I did make a (small) unsecured loan through my SD-IRA.

I have only declined applicants on the basis of income, credit or criminal history. If you document that on the application, you should be OK.

You have to think about how you are distinguishing yourself from the other so-called investors contacting them about their house.

You are providing a SERVICE: No headaches to them, CASH in X days and they can move on with their lives.

The more likely you are able to deliver on this PROMISE of SERVICE the more likely they will want to sell YOU their house (at a discount, of course).

John T. Reed has a great piece on this type of decision - he basically tells people to figure out what is the monthly income they need to get to in order to live the lifestyle they want.

Once you determine that, plan to get to that and not a penny more - every extra penny of income you strive for means that much more leverage/risk.

Well, a friend of mine (very wealthy) participates in funding some loans this bank makes.

My current set of questions will revolve around what their lending guidelines are, what types of portfolios/properties/deals they'll lend against, if they have any bad assets/loans on their books they want to dump, and where/how a small fish like me can become a bigger part of the food chain.