Alright poor inference on my part. There are some other member of this forum that based on what they post would probably have the ability to raise the capital to purchase such a building. However like outlined in Jammer’s post below it’s a crap shoot having somebody else manage your property. If you don’t mind me asking what do you do for a living since you said working with your mom wasn’t for you? Not busting balls just curious.
I’m not implying that you are however your the only person who publicizes the information. Also from what I’ve gathered from the posts you have made on the matter your one of very few people who really understand how to take existing capital and equity and really put it to work in order to better your financial position. Honestly I think that America could use a few more people with your mind set and then we wouldn’t have as many problems as we do right now.
While I don’t work specifically with property managers there isn’t any easy about it. I could never do Section 8 either, it’s not just buy a dump, rent it out and get a check from the state.
There is nothing easy about Real Estate investments. Jammer had some excellent points above. Try sitting on a unit that isn’t rented for half a year. You still have to pay property taxes, etc.
simple question, foreclosure homes/properties/shops/etc… those are not financeable are they? Meaning its a cash and carry deal from what I have been told.
Nothing easy about short sales/foreclosures easier. They are 99% cash sales. Banks won’t finance foreclosed homes. Also, they can take a long ass time to close on… (have one going for 6 months now because of judgements that can’t be removed from the title)
Yeah i would love to be on the recieving end of a diamond in the rough forclosure shop. The 1945 guys got the deal of a lifetime on that building/property, and a guy I know in amsterdam got a nice little shop for something stupid like $5k. He pimped it out for $20K after the sale and has a heck of a nice little bike shop. But like you said, its a lot of work.
It’s not just work, you need the cash (or credit from say a home equity line) to purchase. There’s deals out there for sure… and when they do pop up they go fast. I lost out on one last year because they offered $30K cash over the asking price. Sometimes hard to compete with that.
Forget over the asking price. If they get a cash offer they often take less than any other offers if they have a mortgage associated with it at all. Unless the bank that owns it does the financing then possibly easier.
I want to get in the business but it is a lot of work. And at the price point I could really afford right now I would be dealing with the scum of the earth.
I’m sure a few people on here have duplexes or rental properties, how do you deal with these people sometimes? I feel like one squatter not paying rent can ruin 6-12 months worth of income for a property.
And to get back on topic of general money saving…One thing no one ever teaches you in school is to handle your fucking credit. Credit can affect so many aspects of your life. From where you live, even apartments, to auto loans, insurance rates, etc. Check your credit score often, do not ignore it if it is bad. Credit needs maintenance too. Even if you don’t plan on needing it soon you never know, and it takes some time to repair if you get behind on it. I know 40+ year olds who can’t finance a $10k car, but at the same time I know 21 years olds that are buying 200k dollar houses and it’s not because mommy/daddy is helping them. Make sure to get credit when you are young and be responsible with it so when you need it, your credit is there.
A few tips to positive credit scores:
Always pay your bills on time of course, even a few late payments will hurt you for years.
Always try to keep 2-3 major credit cards open, the longer you are with them the better.
Higher credit limits help your score, some banks are better than others about increasing limits over time and often times you need to request it they won’t give it to you
Make sure to keep the balances low! below 10% would be best
Im going to add some real world on the good topic of credit…as mentioned just above, its of extreme importance, good post and topic.
To keep score elevated, never have a balance over 50% of your credit cards limit… its in the algorythm to lower your score if you do… not substantially, but noteworthy, and every point matters.
Dont shoot for credit limits that are any higher than you need to stay under 50%. Having the credit is like having the debt…cause a lender knows you could max that credit, there is some loss there. I had 5 cards, 4 with 30k credit lines. I asked the banks to cut them all to $15k and it helped my credit worthiness at that time.
No lates for 30 months : This is a big one…some banks, like Trustco do not pull credit scores and dont give a shit if you have a balance at the Want ad Digest, but only care if you had ANY lates to debts (CC, auto, Home) in the last 30 months. Others will care if you owe little debts from years ago that seemingly souldnt matter. KNOW WHERE TO BANK FOR WHAT AND BASED ON YOUR CREDIT. Banks do thngs differently.
#. If planning on multiple investments, know that most banks alllow a max of 4 fannie or freddie mortgages. The only way to get more than four in many cases, it to find a bank that portfolios some product in house. Trustco does, Sunmark will on limited bases, First Niagara, and so on. But these are harder loans and often require more equity.
Banks will finance forclosures, just not all forclosure are in good enough condition. I inspect for many many people buying forclosures, using a bank to get a mortgage. Not dumps, but not all forclosures are…most are not abandonded dumps.
My buddy used to teach a class on credit repair, and for fun I followed all his reccomendations for 6 months, brought my rolling 750’s to all 3 agencys above 800.
^ Must have been the clientele I was working with, but I have yet to get anyone who was looking at a foreclosure a loan on a foreclosure. Or… it could have been the 10 cash offers I was likely facing… Cash wins them.
I got a letter from Sefcu the other day, they were offering me a month to skip for my loan payment due to my “great payment history” with them. Never got one of those before… seemed like a scam. I’ve never been late on any payment in my life. (credit card, mortgage, auto loans, school).
I always got the skip a payment things when I had a SEFCU loan. I never did it though because I wanted to pay the loan off ASAP and not drag it out. Ive since paid it off.
After I get my check deposited next week Im paying off my credit card bill. After that Im taking the money I wouldve use for my personal loan and my credit card bill and paying more on my truck loan. Id like to have my truck paid off by the end of the year (loan goes until 2015).