All Forum Posts by: Dustin Lyle

I read in a thread concerning California where multi unit residentials are selling around 4-5%.. which lead me to a good question.. As investors from across the country, what do you consider to be a good cap rate? Being realistic.. what do you look for in a rate of return per annum? Talking about multi unit residentials. Thanks ahead to anyone who responds.
Dustin

Along with your debt to credit ratio, you want to look at your report diversification... you want to keep a mortgage, several revolving accounts, and at least one installment loan.. (like an auto loan) But to minimize the "cost" of your credit you can call the ceditors and request they lower your APR. If you have been a good customer, more than likely they will... Most times they take it to 0% for 6 months or more.. good luck.
Dustin

Good that your not blinded by numbers though... I often tell my family members about big deals I come across, and they say those ignorant comments like.." you can't afford that" lol If they only tried to understand the value of a good deal, and leverage.. One day when im mentally ready to take on multi-million dollar investments I will.. As should you.. But I have to agree with Mike, Ryan and john, Start small or, well, Start at what your comfortable with... something at a level that's not going to change how you function day to day. Then one day you will realize how far you have come from where you started. Good luck to you Matt..
Dustin

Spectacular debate... But I have this somewhat rhetoric question to the debate which im sure is just me looking too far into it that it becomes simple again.... Can you not have your cake and eat it too? Buy at a discount, do a little rehab, make a little cashflow, gain almost instant "lien able" equity, and repeat? make your system repetitive, utilizing your equity for Down payments?
Though I know its more complicated, Isn't this the idea of it all? To set a wheel in motion and constantly get bigger and better.. I mean, Ive heard naysayers around here (my hometown) discouraging buying real estate, saying quote "it's too much stress". Im sure these people are everywhere but.. I love stress.. I love worrying about the money im making.. At least more so than not making any. And lets say you do make a bad deal.. you dont cash flow like you wanted to, or you haven't appreciated enough to pull out that DP for those new *discounted condos across town... so what? real estate will *always be for sale... there will *always be renters, cash buyers, And more importantly, Windfall sellers.. Leaving the opportunity to recoup almost any possible loss in just one deal. Thank you everyone for your insightful information...
Dustin

Its also nice to have a back-up Exit for a well structured plan of attack.. What will you do if something doesn't go as planned.

Ive only been here a few weeks, and have been a member of a number of forums in the past... But I will second that motion David. Fantastic Moderators.

I was just throwing the numbers out there over dramatizing a bit I guess. but your right... 10/20 sounds good, wanna buy something from me? lol

Thanks for all the insight!!
Dustin

Have you looked down the "land contract" avenue? As long as the contract is filed at the local County Clerks Office, or Register of Deeds Office, There should be no problem refinancing after about 6 months of seasoning. In this time, you would have done all the repairs and leased it out.

I'm still new to this thing but a good angle on this land contract is that the greed of the seller will end up getting you a GREAT deal. Let me explain...
If you can physically show the seller the amortization schedule, letting him see how much money he will make by financing the home to you... Lets say you offer 30K on the 35K property, with a 2K down payment your principle balance is 28K... then offer to pay an OBSCENE interest rate... like 20% amortized over 20 years... that would be a total of $114,161.01, With a monthly payment of $475.67. That's when he's like WHOAA! Sure thing! The key is letting him see that hes making gobs of money on this deal... then repair, appraise and refinancing ASAP!
Thatch just a little idea of mine... Any advice on it from anyone is greatly appreciated..
Thanks,
Dustin