All Forum Posts by: Tom Lybyer

I can loan $30 k to a guy doing a remodel. He tells me 6 months and he will refi. Is there a place I can go to get info on how to secure the loan? Is a lien really that effective? Would I technically be the second? What good it that if he stops paying me but keeps the first in terms.

Still trying to finish the rehab. sometimes it seems the big projects are easier jobs for me to complete  than the little jobs. The  little ones  take more small motor skills. And attention to detail.

"20k rents and 30k pigs", I assume you are saying I paid too much for this house. That is how I see it. We had some cash and 1031 equity to work with but we used it on this market priced, high  maintenance house. I am safe though. if rents drop like they did a few years ago we have room the go down and still have a cash flow. But no equity for a long time.

 Now my liquid cash is mostly used up.  i have a lot of equity in homes we bought 15 years ago. I am excited to find another deal that makes more sense. Still figuring out how to get the money ready from one   of our other properties. Reading the books and listening to the podcast it should be easy. I have insulted a couple of people. Looking for love in the wrong places I guess.

Thanks for your response.

Used a 1031 to buy a rental. Used all the money plus brought in 20 k to make the rent low enough to make sense and be safe. My loan is 70 k. In my small unimaginintive  mind, I can only see 70-80k loans to make cash flows. How do you do it when low end homes start at 230k? Small Condos and town homes go for 180 - 230. Hoa’s kill that cash flow. Are trailers / mobile home good? Still have a space cost. Rents are only a little lower. depreciation seems to me would be a problem here. I can see falling down homes as a maybe. But I am loud wiener and potty mouth trying to hand a picture. I would have to hire the fix up to a contractor who is probably competing for the same property. Listen to me wine. No pictures were injured in writing of this post. Surfice it to say, please help me understand how to get out of my 70 k loan max thinking.

it is a 1031 exchange. my wife is afraid nothing else will come up.  we are watching the mls. we have a realtor sending us updates for houses, 2 brm under 250k. the only alerts we are getting now are condos and townhomes. even those are coming in around 200k we have a city 50 miles away that we are watching also. I need to learn to be creative on the homes that are available. I have been willing to walk on the deal. but the market is passing us up.

I had to sell a long time rental. Long story. Suffice it to say it had to be done. We will get 119k after all is said and done. We fond a property. It is by no means a deal. Bidding war we went full price and was awarded the sale. $219k. Needs all the maininece a 30 year old house needs. Roof, water heater, front door has issues smoke alarms etc. etc. etc. In todays market we can rent it for  $1100.  Pi ti is $750 monthly. My wife wants to take 20k less on the loan and bring in $25k at closing to cover costs and bring the loan down for when the market swings and rents go down. That is what happened at the crash. Our other rentals were bought low enough to survive the crash. 

I do not like bringing in all the money. It does not seem like a good thing to do. We have been watching the market and prices are going up 5-10k per month. We do have a great location. It is definatly a very conservative buy so low risk. But no roi.  There is no turning back so there really is no advice to be had. But it is an intellectual discussion I hope.