All Forum Posts by: Tim Bee

I have the ultimate creative financing idea.  ZERO interest on hard money loans with only a one time 3% fee.  Using high credit limit credit cards.  Its the cheapest hard money loan you will ever use.

Even if your HOA approves it cities are always changing their rules and they could end up banning all STRs in a certain area at any time. Be careful. Look what happened to Palm Springs. People bought tons of STRs for years and BOOM a few years ago it became so highly restricted owners were forced to quit renting out for short term and forced to do long term. Many lost it all because STR math isn't profitable in a LTR property.

Here's a simple way to not be paralyzed.  1) Does the deal at least meet the minimum 1% rule.  If it doesn't, don't buy it.  Boom done.  2) Now once you have found one that does meet the 1% rule you have to look at all the other factors.  3) There are a lot of factors.  But these days finding a deal meeting the 1% rule isn't as easy as it used to be so you will have plenty of time to analyze all the other factors.  If you don't know all the other factors you can ask that question as well. 

Any cities in CA, AZ or NV that you are still consistently seeing deals that are in the 1% rule?

Eliminate bills you don't need. ie netflix, Prime etc.  Cut down on bills you have to pay like lowering your phone plan to no more than $40/mo.  Raise your credit card limits as high as you can incase you have to tap them for a no interest hard money loan.  Delete all but two major credit cards.  Work overtime as much as you can.  Find out if any friends and family will give or loan you money.  Look at homes for sale and rents in the area every day so you know what an average deal looks like.   Find a realtor who already does what you want to do and have them shoot you deals.   Once you've done all that then, and ONLY then are you ready to buy.  When you do buy don't settle for anything less than the 1% rule.  Your first deal could bankrupt you if you don't follow that rule.  Your first deal could also make you independently wealthy if you can swing it.  You really have to want it.  But trust me I have 16 single family houses now, all paid off and the money is sweet.

Detroit is great if you like high crime

I wouldn't re-fi your primary.  You don't have enough equity.  So basically your situation is that you only have a small amount of money saved and you want to buy an investment property.  My advise is to work a lot of overtime and save up to 150K.  The remaining money needed to can be acquired from credit cards or hard money or family and friends.  

 6 million in today's real estate market is just getting started.  You better keep looking and keep at it.  You got a long way to go.  But great that you are active in real estate investing!  Don't ever stop!!

Has anyone seen what this comm***st Senator Durazo is doing with SB 567?  She is putting forward a bill for California that would limit rent increases to 5%.  Any thoughts on if this will pass?

I always stick to the 1% rule. I buy cheaper single family homes and have 16 so far. As long as it's not a condo with HOA or a home with HOA and HAS to be located in a B class neighborhood or higher I will get it. I usually find homes 20-30% under market value due to some great connections I've established over the years. If the property doesn't meet the 1% rule I don't buy it. If it meets or exceeds the 1% rule then I usually buy. I come across homes that don't meet the 1% rule all the time but I'm a little more picky than most and will only settle for a 1% rule property. For those who flip or hold for capital gains then that's a different game.