All Forum Posts by: Tom C

I don't have friends, gave them up years ago. They were too much hassle. I do have co-workers that I am friendly with. I find their life interesting. They work all day in a cube or office and go home and basically do nothing the rest of the night. Maybe they cut grass or run to the store with the wife, but that's it. I couldn't dream of getting home every night and doing basically nothing the rest of the evening all the time.

I have always either had a full and part time job or full time job and school. Now I have a full time job and my property investment business. I run home, change clothes, jump in the truck and I am off to work on a rehab. Of course now that it's bow season and I am finished with my last project and waiting on funding, I go home grab the bow and head out back to my tree stand. Just working all day and then going home for the rest of the evening, seems so boring.

I also buy them from Northerntool.com.

The problem is that the new buyer has to get a loan which then brings the bank back into the picture. The buyer is not going to get a loan, no matter what you put the title in without the bank looking at that property, which inturn brings about the seasoning issue.

Am I missing something here?

Get up early and go. I like to wake up at around 430am, make a coffee and head out. The gym is 20 mins from my house. Almost no one is there, so you don't have to worry about someone being in your way.

You can call them up at any point and say you want to close your account and you will give them so much.. Most likely they will not work with you until it goes to collections and by that point it has been wrote off and yes, it will hurt your credit.

Will,

How will placing the property into an LLC and then selling the LLC to the person help with seasoning? A banks not going to give a home loan to a person in order to buy an LLC/ Business. And they are still going to want to look at the collateral which is the house and title to the house will have the sale date..

Sorry.. You lost me on this one. Seasoning is a big issue for me too.. So any loop holes you know whould be great.

I do not have a vast knowledge of the internal workings of our economy, but I am very good at watching people and how they react to certain situations. I can tell you in my office, people who have 401k's and own individual stocks, are waiting for a sign that we hit bottom. More then likely that sign will come from CNBC or Bloomberg News. Once they feel that we hit bottom, all bets are off. They are going back into the market, dumping tons of cash on individual stocks and mutual funds.

Now my little office has around 50 employees on our floor, maybe 20 of them have been sitting around discussing this and when to do it. Some of them have even pulled money out of their homes in equity loans to jump at this buying opportunity. Consider for one moment that we are in a new world with 401k and 521 college funds. Investors are not any longer just for rich people who drive the market. Investors are now everyone and our generation is much more savvy then the generations before us and before them.

At the same time, we have an outlook on this economic crisis as a major money making opportunity, not the end of the world dooms day situation that some people believe in. Perhaps we are naive in our way of thinking, but this naivety could possibly be the key in why we are not going to see a collapse of our economy, but actually many many more millionaires will be made from this opportunity. Can we sustain this way of thinking for long? I don't know, but if a few got very rich during the Depression, just think how many will get very rich during this crisis. The market is going to be flooded with cash that has just been sitting on the side lines and some very good things can come from this.

If you have cash, anything can be bought at a huge discount right now from people who are hurting and need money. Take a look on Craig list. Cars, boats, electronics and tools. Buy this stuff and hold it. When the market comes back, there will be plenty of opportunity to sell it and make a nice profit. I have been doing this with guns for years. Some hillbilly at the bar needs to pay rent, so he sells me one of his shotguns at a huge discount. I turn around and sell it for retail. Same concept that pawn shops have used.

Not sure I follow. The fact that they don't qualify for conventional funding, has nothing to do with seasoning. What is your intent on deeding it in their name?

Please explain.

Yes, I do shoot for the $100 per unit a month cash flow, but most are better, some are worse depending on how the month shakes out.

Honestly, I am not sure what I am shooting for beyond those 20 units. I started learning process just on a whim and then after discussing it with the wife, I decided to jump in. I never thought that I would have as many homes in such a short period of time when I started this business. I can see moving up to multi's and then perhaps to an apartment building. I also would like to do a flip here and there when the right deal comes up and our market comes back a little.

I started this process in an effort to supplement my income, so I would not have to rely on someone else for a paycheck. I see that is going to take a while to get there, but my ultimate goal is to be able to walk away from my job and work for myself. After watching many of my co-workers walked out the door due to outsourcing, it didn't take long to realize that loyalty no longer exist in the corporate world and I despise relying on someone else for a paycheck.

Sure.. When I say seasoning. It's how long you have owned the property. When you go out to sell the home in a flip situation or when you just want to refi it.. Banks used to require that you owned the home for 90 days or more before they would take the new appraisal price. If you didn't have 90 days on the title, it didn't matter how many receipts you would provide to them showing improvements, they would still only look at your purchase price or what the house appraised for when you bought it.

An example.. I pay 14K cash for a house. In 3 months I want to refi it and pull some money out.. I pull a new appraisal and it comes in at 53K.. The banks used to accept that with documentation of improvements.. Now they will not, they say. It's only worth the 14K you paid for it, unless I wait one year.

I am not sure what this new 1 year requirement will do to people who are using HM and need to refi or sell within 6 months. I am sure HML's will have extend their requirements out to one year now.