Any Real Estate Investors in the House?

Off Topic
41

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR.
[/quote]

I’m terrified of making a big mistake on such a large purchases, lol. No argument there.
[/quote]

I am young enough to take a risk and rebound so it hasnt been fear as much as lack of capital and knowledge, mainly capital. I was a wreckless morong in college and my first few years making real money so after I wised up I wanted to make sure I had a solid financial base before investing. Funny part is I have freinds in my age group asking me about investments even though they have credit card debt. Never understoof that. But I agree, most people are afraid to do much which is why they never acheive much but that is a whole other argument for another thread :slight_smile:

42

[quote]dmaddox wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR.
[/quote]

I’m terrified of making a big mistake on such a large purchases, lol. No argument there.
[/quote]

Zig Ziglar calls FEAR, False Evidence Appearing Real. It is only a number Lanky. “Put all your eggs in one basket and spend your entire life making sure no one knocks over your basket.” Andrew Carnegie[/quote]

Man, I feel like I would get along with you in person very well. Were you a Napolean Hill guy as well?

43

Dmaddox, is there a rent-to-price ratio you try to hit on your deals? I see 1% referenced quite a bit (e.g. $1k/month in rent for a $100k purchase).

We have one rental currently (our first home) that doesn’t hit that mark (close though). Looking around at the properties available currently, it seems hard to hit that 1% as I don’t think I could get $1k/mo for a $100k home around here.

44

[quote]dmaddox wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR.
[/quote]

I’m terrified of making a big mistake on such a large purchases, lol. No argument there.
[/quote]

Zig Ziglar calls FEAR, False Evidence Appearing Real. It is only a number Lanky. “Put all your eggs in one basket and spend your entire life making sure no one knocks over your basket.” Andrew Carnegie[/quote]

Anyone that still quotes Zig Ziglar is A-OK in my book. Love that guy.

45

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR.
[/quote]

I’m terrified of making a big mistake on such a large purchases, lol. No argument there.
[/quote]

I am young enough to take a risk and rebound so it hasnt been fear as much as lack of capital and knowledge, mainly capital. I was a wreckless morong in college and my first few years making real money so after I wised up I wanted to make sure I had a solid financial base before investing. Funny part is I have freinds in my age group asking me about investments even though they have credit card debt. Never understoof that. But I agree, most people are afraid to do much which is why they never acheive much but that is a whole other argument for another thread :slight_smile: [/quote]

I’m only a year or two older than you but I’m a bit more tied down with a family that has all of their eggs in my basket. It’s much riskier for me, IMO.

That being said, you’ve obviously got a good head on your shoulders, I think you’ll be alright even if this whole real estate thing doesn’t work out for you.

And I agree with you on CC debt, it literally makes no sense. You want an 18-24% return on your money? Stop paying it to the CC company!

46

[quote]Waittz wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR.
[/quote]

I’m terrified of making a big mistake on such a large purchases, lol. No argument there.
[/quote]

Zig Ziglar calls FEAR, False Evidence Appearing Real. It is only a number Lanky. “Put all your eggs in one basket and spend your entire life making sure no one knocks over your basket.” Andrew Carnegie[/quote]

Man, I feel like I would get along with you in person very well. Were you a Napolean Hill guy as well? [/quote]

Think and Grow Rich. Great Book, but I take the Ether thing with a grain of salt. I believe in Christianity. I think we would get along just fine. I am extremely easy going except when I am driving in Houston Traffic.

47

[quote]Tyler23 wrote:
Dmaddox, is there a rent-to-price ratio you try to hit on your deals? I see 1% referenced quite a bit (e.g. $1k/month in rent for a $100k purchase).

We have one rental currently (our first home) that doesn’t hit that mark (close though). Looking around at the properties available currently, it seems hard to hit that 1% as I don’t think I could get $1k/mo for a $100k home around here.[/quote]

Thats about right, but not a hard and fast rule. I have purchased houses less than 1%, but have zero money out of pocket and $600 a month in cashflow. Most rentals need to be cheaper because you can always find a renter looking for $1,000 a month rent, but harder to find a renter at $2,500+ a month.

48

[quote]dmaddox wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR.
[/quote]

I’m terrified of making a big mistake on such a large purchases, lol. No argument there.
[/quote]

Zig Ziglar calls FEAR, False Evidence Appearing Real. It is only a number Lanky. “Put all your eggs in one basket and spend your entire life making sure no one knocks over your basket.” Andrew Carnegie[/quote]

This is a great thread with a lot of good information. I hope you don’t mind, but I want to pick your brain a little bit more, as this is a topic in which I’ve always been interested. I’ve never really taken the steps to get started, mainly because I fear the hassle of dealing with tenants. So I’m curious, did you (or do you still) personally manage your properties, i.e. find tenants, respond to calls, deal with unpaid rent…etc, or do you have a property manager or management company? Would a large reason that this is so profitable because you do this yourself and not pay someone else?

I really appreciate the advice you’ve given so far, thank you.

49

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR.
[/quote]

I’m terrified of making a big mistake on such a large purchases, lol. No argument there.
[/quote]

I am young enough to take a risk and rebound so it hasnt been fear as much as lack of capital and knowledge, mainly capital. I was a wreckless morong in college and my first few years making real money so after I wised up I wanted to make sure I had a solid financial base before investing. Funny part is I have freinds in my age group asking me about investments even though they have credit card debt. Never understoof that. But I agree, most people are afraid to do much which is why they never acheive much but that is a whole other argument for another thread :slight_smile: [/quote]

I’m only a year or two older than you but I’m a bit more tied down with a family that has all of their eggs in my basket. It’s much riskier for me, IMO.

That being said, you’ve obviously got a good head on your shoulders, I think you’ll be alright even if this whole real estate thing doesn’t work out for you.

And I agree with you on CC debt, it literally makes no sense. You want an 18-24% return on your money? Stop paying it to the CC company!
[/quote]

Didnt realize we were so close in age! …Too bad I cant say the same for height…

I actually got started in finance, and my old man is a CPA, been a CFO for the last 20 or so years for a few companies. I am so talented at match but I hate it so much so I had to move back to sales/management.

50

[quote]andrew8049 wrote:

This is a great thread with a lot of good information. I hope you don’t mind, but I want to pick your brain a little bit more, as this is a topic in which I’ve always been interested. I’ve never really taken the steps to get started, mainly because I fear the hassle of dealing with tenants. So I’m curious, did you (or do you still) personally manage your properties, i.e. find tenants, respond to calls, deal with unpaid rent…etc, or do you have a property manager or management company? Would a large reason that this is so profitable because you do this yourself and not pay someone else?

I really appreciate the advice you’ve given so far, thank you. [/quote]

I do it all myself. With 7 properties I get on average 1 call per month. The managing is the easy part. The hard part is the property locating, the financing, closing on the property and the rehab. The first 2 months of owning a property is tough, but after that it is smooth sailing. I have had some tenets pay late, but after they pay late fees once they never ever do it again. Also when they receive the notice to vacate letter they know I mean business and will kick them out of the house. Texas laws are on the landlord’s side so it is easier to evict than say California. I can get someone out in 20 days and a judgement for back rent and I get to keep their deposit.

51

[quote]dmaddox wrote:

[quote]andrew8049 wrote:

This is a great thread with a lot of good information. I hope you don’t mind, but I want to pick your brain a little bit more, as this is a topic in which I’ve always been interested. I’ve never really taken the steps to get started, mainly because I fear the hassle of dealing with tenants. So I’m curious, did you (or do you still) personally manage your properties, i.e. find tenants, respond to calls, deal with unpaid rent…etc, or do you have a property manager or management company? Would a large reason that this is so profitable because you do this yourself and not pay someone else?

I really appreciate the advice you’ve given so far, thank you. [/quote]

I do it all myself. With 7 properties I get on average 1 call per month. The managing is the easy part. The hard part is the property locating, the financing, closing on the property and the rehab. The first 2 months of owning a property is tough, but after that it is smooth sailing. I have had some tenets pay late, but after they pay late fees once they never ever do it again. Also when they receive the notice to vacate letter they know I mean business and will kick them out of the house. Texas laws are on the landlord’s side so it is easier to evict than say California. I can get someone out in 20 days and a judgement for back rent and I get to keep their deposit.
[/quote]

Forgot always do a criminal and credit background check on all tenet candidates before drawing up the lease. Do not let them sign the lease till they give you the deposit and first months rent.

52

[quote]Waittz wrote:

I actually got started in finance, and my old man is a CPA, been a CFO for the last 20 or so years for a few companies. [/quote]

Our fathers are a lot alike. Maybe we are twins.

53

[quote]dmaddox wrote:

[quote]dmaddox wrote:

[quote]andrew8049 wrote:

This is a great thread with a lot of good information. I hope you don’t mind, but I want to pick your brain a little bit more, as this is a topic in which I’ve always been interested. I’ve never really taken the steps to get started, mainly because I fear the hassle of dealing with tenants. So I’m curious, did you (or do you still) personally manage your properties, i.e. find tenants, respond to calls, deal with unpaid rent…etc, or do you have a property manager or management company? Would a large reason that this is so profitable because you do this yourself and not pay someone else?

I really appreciate the advice you’ve given so far, thank you. [/quote]

I do it all myself. With 7 properties I get on average 1 call per month. The managing is the easy part. The hard part is the property locating, the financing, closing on the property and the rehab. The first 2 months of owning a property is tough, but after that it is smooth sailing. I have had some tenets pay late, but after they pay late fees once they never ever do it again. Also when they receive the notice to vacate letter they know I mean business and will kick them out of the house. Texas laws are on the landlord’s side so it is easier to evict than say California. I can get someone out in 20 days and a judgement for back rent and I get to keep their deposit.
[/quote]

Forgot always do a criminal and credit background check on all tenet candidates before drawing up the lease. Do not let them sign the lease till they give you the deposit and first months rent.[/quote]

That’s good to hear. Then I guess maybe once a year for each property you have to find a new tenant if they don’t renew, right? That doesn’t seem bad at all to be able to live off of the income.

54

[quote]dmaddox wrote:

[quote]Ripsaw3689 wrote:

[quote]LankyMofo wrote:

[quote]Waittz wrote:

[quote]LankyMofo wrote:

[quote]dmaddox wrote:

[quote]LankyMofo wrote:
Also, how do you find homes with positive cash flow? Typically rentals in my area go for monthly payments that are comparable to the mortgage payment, which leads me to believe the only people making money on their rental properties are people who bought before prices increased.

Also, dmaddox - when you say your lender, do you have 1 bank you deal with or do you use a broker for each property?[/quote]

I have used Banks, mortgage brokers, and Hard Money on all of my properties. Hard Money will give you the purchase price and rehab dollars in one loan upto 75% of the After Repaired Value (ARV). Then you get the lease signed and then refinance into a 30yr fixed rate loan at 75% of the Appraised Value. Less money out of your pocket. In this market though Hard Money is getting harder and harder to use because the numbers are not working. It is sometimes better to use conventional lending up front with the 20% down and paying the rehab out of pocket.[/quote]

I’m assuming hard money works best on a property that you’re getting a great deal on, is that correct? For instance, the lender is giving you 75% of ARV which may cover the total initial purchase price of the house, leaving you only to pay for rehab costs out of pocket. Yeah, I definitely see what you’re saying about the numbers adding up.

Thanks for the responses, guys, I’ve always been a bit interested in real estate.[/quote]

You’re an accountant right? [/quote]

Yup.

None of this stuff seems like rocket science but like I said, I’m always under the assumption that there is something I don’t know and the only people I know who are successful in real estate are handymen.

[/quote]

Honestly, I think most people are too lazy or ignorant to take the dive. They see it as a risk instead of weighing the risk/reward like any person who has financial intelligence. [/quote]

It is not so much laziness. It is FEAR. Fear of messing up, or fear of being made fun of or called a slum lord.

I have been made fun of by my friends all the time. My tenets stay with me a long time so I am not a slum lord by any stretch of the imagination. When you show them your balance sheet they start to shut up and listen. I no longer try to get my friends to invest in real estate. I want it all for myself. I tried, but they would not listen.
[/quote]

True, but I also think laziness is a big part of it. How many people take their own free time to learn the ins and outs of a new skill they want to learn? Very few, highly motivated people that can see the big picture. It’s easier to flip on the TV and watch Honey BooBoo.

55

[quote]dmaddox wrote:

[quote]GhorigTheBeefy wrote:
www.reiclub.com You’re Welcome![/quote]

This is a good site to find local clubs, but get ready for wholesalers pitching deals, real estate agents pitching deals and vendors just selling stuff. Not a lot of education. This is My Opinion.[/quote]

The Fuck you talking about? Did you even look at the forums? It is by far the best real estate investment forums on the internet. They have guys that are multi-millionaire stock brokers, rental empires, commercial rental/resale, whole salers, tax peeps, etc. Everything you could ever need to know is in those forums if you are willing to look for it. All of these people are individuals that aren’t selling programs, well most of them…a couple will recommend a program but if they only have like 12 posts you know it is a spammer.

Few posters to watch/search for. FDJake, Propertymanager, Bluemoon, guy with CPA in his name. That’s just to start. It’s very apparent who to listen to and who is a noob.

56

[quote]andrew8049 wrote:

[quote]dmaddox wrote:

[quote]dmaddox wrote:

[quote]andrew8049 wrote:

This is a great thread with a lot of good information. I hope you don’t mind, but I want to pick your brain a little bit more, as this is a topic in which I’ve always been interested. I’ve never really taken the steps to get started, mainly because I fear the hassle of dealing with tenants. So I’m curious, did you (or do you still) personally manage your properties, i.e. find tenants, respond to calls, deal with unpaid rent…etc, or do you have a property manager or management company? Would a large reason that this is so profitable because you do this yourself and not pay someone else?

I really appreciate the advice you’ve given so far, thank you. [/quote]

I do it all myself. With 7 properties I get on average 1 call per month. The managing is the easy part. The hard part is the property locating, the financing, closing on the property and the rehab. The first 2 months of owning a property is tough, but after that it is smooth sailing. I have had some tenets pay late, but after they pay late fees once they never ever do it again. Also when they receive the notice to vacate letter they know I mean business and will kick them out of the house. Texas laws are on the landlord’s side so it is easier to evict than say California. I can get someone out in 20 days and a judgement for back rent and I get to keep their deposit.
[/quote]

Forgot always do a criminal and credit background check on all tenet candidates before drawing up the lease. Do not let them sign the lease till they give you the deposit and first months rent.[/quote]

That’s good to hear. Then I guess maybe once a year for each property you have to find a new tenant if they don’t renew, right? That doesn’t seem bad at all to be able to live off of the income.[/quote]

I have only had to find a new tenet once on all of my 7 properties the past 2 years. The one I have had for 8 has had the same tenet in there the whole time. I am always a little below market rents $25 just so the tenets will not shop me. Loosing $300 a year in revenue is less than loosing one months rent average $1000 for one month.

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[quote]GhorigTheBeefy wrote:

[quote]dmaddox wrote:

[quote]GhorigTheBeefy wrote:
www.reiclub.com You’re Welcome![/quote]

This is a good site to find local clubs, but get ready for wholesalers pitching deals, real estate agents pitching deals and vendors just selling stuff. Not a lot of education. This is My Opinion.[/quote]

The Fuck you talking about? Did you even look at the forums? It is by far the best real estate investment forums on the internet. They have guys that are multi-millionaire stock brokers, rental empires, commercial rental/resale, whole salers, tax peeps, etc. Everything you could ever need to know is in those forums if you are willing to look for it. All of these people are individuals that aren’t selling programs, well most of them…a couple will recommend a program but if they only have like 12 posts you know it is a spammer.

Few posters to watch/search for. FDJake, Propertymanager, Bluemoon, guy with CPA in his name. That’s just to start. It’s very apparent who to listen to and who is a noob.[/quote]

What is your problem?

We all know the interwebz is filled with people that only tell the truth about everything. I guess your website is the only one that has multi-millionaire stock brokers. What does that have to do with Real Estate?

All I was saying is be careful with any program. I thought that was the National REI website, which directs you to local clubs. Those Local clubs put you around like minded people, which is good, but their speakers only try to sell you something.

I have been on here for 6+ years and this is the first time I have ever talked about the company I worked for, because I was asked about it. Get over yourself.

58

[quote]GhorigTheBeefy wrote:

[quote]dmaddox wrote:

[quote]GhorigTheBeefy wrote:
www.reiclub.com You’re Welcome![/quote]

This is a good site to find local clubs, but get ready for wholesalers pitching deals, real estate agents pitching deals and vendors just selling stuff. Not a lot of education. This is My Opinion.[/quote]

The Fuck you talking about? Did you even look at the forums? It is by far the best real estate investment forums on the internet. They have guys that are multi-millionaire stock brokers, rental empires, commercial rental/resale, whole salers, tax peeps, etc. Everything you could ever need to know is in those forums if you are willing to look for it. All of these people are individuals that aren’t selling programs, well most of them…a couple will recommend a program but if they only have like 12 posts you know it is a spammer.

Few posters to watch/search for. FDJake, Propertymanager, Bluemoon, guy with CPA in his name. That’s just to start. It’s very apparent who to listen to and who is a noob.[/quote]

How much real estate experience do you have?

59

I started with the free lessons. DL’d and am going through lesson 1 right now.

I have hit a wall in step 2. I searched for REI groups in my area, but the closest one is 120 miles away, and I’m not too sure I want to waste the drive to attend his meeting.

I would like to join lifestyles unlimited, but I don’t live in the Dallas-San Antone-Houston triangle. Is there still mentoring available for someone who lives in West Texas?

60

Great thread. I am interested in pursuing this as well. Currently I am working and doing my MBA part time, ideally my higher income post graduation will allow me to finance RE investments (takes money to make money, right), while still living frugally. I really appreciate the advice dmaddox gives, as it can be a field with so much information (and scams) unless you personally know someone who has done it.

Like the OP, my goal is to retire from the real world at 35 (giving me 8 years from now) and then use RE money to dabble in other ventures like buying businesses, more RE, and a mixture of bond/equities.