OfflineAbout two weeks ago I got up in the morning and decided that I needed some extra cash. The question is how much do I want? The number that kind stuck in my head was $50,000. It has a nice ring to it. I ended up settling on $40,000. SO all I had to do was create the cashflow per month to cover the $40K. I quickly glanced over my rental rates and made some quick decisions on who was ready for rent increases. I called my property manager and told him to raise the rents on the specified units. So all in all I raised the rents on five different units until the total was about $280 per month. Then I called my banker and told him I wanted $40,000. He told me he would glance over my portfolio and call me back. Later he called me and told me the paperwork was in process and the money was going to be pulled the properties with the most equity. I told him thanks and to let me know when I needed to come in and sign the paperwork. Now, the debt service of $40,000 is about $280 per month so the increased rents covered the difference. I now have $40,000 I can spend or invest as I want to. There aren't any taxes due because you don't have to pay taxes on a loan. I still own the assets because I didn't sell anything. Ahhh, it sure does feel good. Now, this is coming from a guy that was making payments on a piece of furniture 3 years ago that cost $1000! Can you imagine having to finance furniture! Things can change for you that quickly if you are willing to put in the time. That is the power of real estate. I have friends that went to college that don't make $40,000 per year after taxes, a lot of friends. My parents always told me I wouldn't be able to go to college because they couldn't afford to send me so I didn't get a degree. Instead I got mad about being broke and decided to do something different. . The only thing I can say to my parents now "Thanks Mom and Dad!!!"
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
You are the MAN!
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
WoW WOW wOW CBR thats to cool to bad i dont have some rentals
but maybe some day hope you dont mind me saying so .YOUR THE MAN CAN YOU TEACH ME JUST SOME OF WHAT U KNOW WOW.
Thanks for sharing that with us CBR, more fuel for the fire!! I had to buy my furniture that way too, but that was six years and three deals ago. Although I could've bought newer furniture, I invested it back into my education and more real estate.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I can't emphasize enough. If you are not investing in real estate right now-Take Action! There is so much opportunity it is unreal. Remember, I am not writing this saying "look at me" I am writing this saying "go get started".
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
CBR, this is great encouragement to those wanting to take control of their lives. We have been listening to Anita, Rina, Elena, Hazco, Sully, you and others here on DG and got busy also!
Back in May, I went into my local bank and showed them our business plan! They agreed to set us up with a 5% equity line on the home we live in.
We have been having a hard time finding investors here in North West Iowa.... but Dean has taught us to "Think A Little Different" and since then we new have seven rental units. Now not all are refurbished and rented but we are working on it. Here is how the first one worked out.
Purchased: $34,500
Renovate: $ 9,000
Assessment $59,000 after repairs
Our bank can 80% LTV which is $47,500: we only need $44,700 the rest is profit. Did you see that..... oh, you missed it!!!!!! even though the real estate market is in big trouble and banks are getting REAL tight on loaning money "We financed 100% of our property." Because we bought at the right price, we did the right repairs, we are running our business and we were open with the bank.
In other words we finished our first property (The Bunny House) and rented it for September first...... WITH ABSOLUTELY NO MONEY OUT OF OUR POCKET. And we got paid $3k for the sweat equity we put into the property! It doesn't get much better!
Thank you Dean and the DG community; we couldn't have done it without you!!!!
Regards,
Rohn & Shelley
DeJor Properties, LLC
Where are you investing? What cities? Great job on your purchases!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
CBR - DeJOR Very nice. I can't wait til I get there. I will. And when I do LOOK OUT!!....
Good stuff cbrpower!!!
Zeek
Since i have no experience yet, all i got is questions! DG community help me out in raising quick cash for down payment. the owners want 30% down and it is a huge amount of $930,000 and the owners carry back a 2nd mortage and the 1st loan is assumable. How do i raise the down payment?
I wish I can say the same for my area. I live and work in northern New Jersey. Real estate here is not cheap at all. Typical homes here sell anywhere between $300,000.00 and into the millions. Even complete knockdown properties fall into those price ranges. Banks are not in favor of lending out $300K that will need $100,000 to fix/repair and then try to sell it in an already flooded real estate market. There are thousands of homes for sale here. Real estate is just so expensive. Maybe get it, fix it and rent it? But the rent just wouldn't pay the monthly mortgage on it.
To find something that cheap, under $100K is extremely rare, unless it's in an area that you wouldn't walk through without police escorts. AND if it's in that area, you won't be able to rent it out, because people will be afraid to live there.
I've been looking into hard money lenders, most of them that I've researched are looking at credit scores of over 600. They don't like to lend to 1st time investors, and if they do, there are stipulations, that a person without good credit can't get close to.
I keep thinking out of the box. Now I'm trying just to get deals through finding investors by placing ads "We Sell Distressed Properties." I figured that because there are signs all over this area "we buy houses cash," perhaps trying a different approach, I can get some leads of actual investors. Make some money by hooking up the seller to the buyer. So a double closing in the same day.
There are a ton of homes here that are in pre-forclosure status because of lis pendiens, so I've started sending out letters to the owners of the properties. Maybe that will work.
I will not give up. I intend on making money with this. Something is bound to give, and I will get those great deals coming in soon, I hope.
Donna
That's an excellent idea, call those we buy houses guys and make them your allies. The good thing about your market is that when you do lock up a deal your profit margin will be BIG!! You got the right attitude though, don't give up and it will work out for you.
God bless,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."