All Forum Posts by: Todd Pultz

@Jim K. I do not disagree with you! I read your bio and it appears you have good experience so use that wisdom and knowledge to empower these young investors. Doesn’t mean they will listen, but at least you tried.

@Jen Narragon a few have said great deal and congrats. I am missing what your rents will be, rehab costs and ARV! More for curiosity as paying 1m for a quad is crazy to us Midwest folks lol! We drop 70-80k on off market quads that gross $2500-3000.

@Ryan Thomas lots of good points, but I think we are missing a few here. It’s not a simple addition of monthly rents to see how long it would take you to make that profit from a sale. You need to factor in you mortgage buy down, depreciation, and other tax benefits instead of just calculating monthly rent.

You create wealth by owning real estate not by selling real estate. However, if the house is little to no trouble and you don’t loose money on it, there is no reason to sell. I would cash out refi it and use that capital to buy other real estate so you maintain an asset while buying more. Just ensure you don’t over leverage and you still cash flow. Even if you are flush at the end of the year, you’ve made money based on the other factors I mentioned above.

If you really want to gather some cash to buy, take all 3 properties you have and do a portfolio loan refinance lumping them all in to the same loan. Money is cheap right now.

However, in no scenario should you just be holding cash! That’s silly and makes no sense.

If you have extra cash place it into a moderate diversified portfolio. The take a liquidity line against your investment and loan yourself money to buy real estate at cheap rates. Your principal does not decrease and continues to grow and should almost always outpace the interest you pay on the liquidity. Example, I loan myself money at 3% but my principal is growing at 12-15% consistently. No brainer. This is infinite banking similar to using whole life policies!

@Jeff Pollock I agree with @Joe Norman if it’s not failing, it will not add value to the appraisal in most situations.

@Sean Yang yes that still triggers it! If your escalation offer was still a solid offer which I hope it was since you offered it, don’t get caught up in the mud on something like 2 days. If they failed to produce an offer then question it

@Adah None @Rob Golob I really do not follow your logic here! I completely disagree with “no sane person would sell for that”. In real estate we are problem solvers and you make money on how you buy a property and most investors want to buy a property for as cheap as possible.

Now, if you are acting in the capacity of a realtor you are held to a different standard and have to disclose what the property would sell for on the open market if your buying for cheaper. However, he did not mention he was a realtor

I can spit out 4 probate deals just this week we closed on with families and each one could have sold for 100-200k more than what we gave them. However, they were not interested in dealing with the property so we walked them through probate with our attorneys and helped them open estates etc. They went from wanting to let the property go and not make anything to dealing with us and making a few thousand. I certainly am not going to offer more money just because I know it’s worth more. I’m going to pay what their willing to take. And if you want us to believe you would offer someone an extra 100k because you think they are giving you too good of a deal, I’ll call your B.S.!

That would be completely counter productive to being a successful real estate investor!

Unfortunately the great deals like this come with more quirks, so you have to be prepared to deal with more issue. This guy did nothing wrong at all with the purchase price. He got a great deal and solved someone’s problem at the same time.

Please share with us the seminar on REI you went to that taught you not to take great deals and offer a seller more money if you think they are giving you too good of a price.

@Jim K. We are always trading time for money right? It’s obvious by your ridiculous post you have quite a bit of time on your hands, so maybe trade some of that in.

I don’t usually comment on things like this, but your post is not what the investor community is about. Truth is absolutely necessary, but that should be done in a productive manner without being a complete jerk. Young investors seek guidance from more experienced investors, they do not seek worthless story time posts like you were able to accomplish.

Be a professional! Be good to people! It’s always a givers gain and we need to ensure that what we are giving is something of value

Best of luck to you!

@Mary M. Not completely accurate here. Your deposit and first months rent can be done via money order or cashiers check or cash which does not allow it to be reversed. We require one of those for move in.

Why would they reverse the next month? They would just not pay and now we have a non paying renter to evict.

If you give enough times for funds to clear before signing a lease your pretty good.

Your right anything can happen, but part of our job as investors and property managers is to mitigate risk the best we can.

@April Savoie I’m not a attorney, but here is my two cents. If the building is currently operating but out of code, it’s a non confirming and you can continue the same use. However, once you file permits for a major structural change your usually required to bring it up to code.

You should only have 1 water main coming in for that size of building and should be talking about only one meter to move out if you have to. I’ve done a lot of these and it’s not crazy in most situations unless you have to tear up streets. If it’s already coming in to building, which it is, your not going to have a tap charge to connect. You shouldn’t. Plumber will just move meter to outside of building. Most of my situations have been under 10k with 10k being due to digging up sidewalk or something else like that.

@Jeff Castro frustrating for sure, but be happy she’s gone, get the place ready and get a new tenant. You could take her to court for damages, but do you think she has money even if you win? Is it worth the energy?

I am curious though how you drew the conclusion she was running a hospice home care there? You said “a name” you didn’t recognize. Playing devils advocate maybe she just had grandma living with her. Maybe she was committing a prescription fraud scheme. You just don’t know and you certainly did not provide enough information to draw the conclusion you did. Regardless, that has no bearing on filing suit for damages and the court does not deal with assumptions.

While your upset, make the right decision for your business and not your emotions! Sometimes we eat s%^* because it’s a better business decision. Good luck