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Airdoo, I am not sure what one has to make to qualify as I am not a loan officer. From what I understand is that you can take out one loan, and then that property is counted for you and not against you and your net worth is increased. That should enable you to take out another loan which in turn would increase your net worth more and then enable you to buy another property. Repeating the process.
You need to call Jeremy to find out mortgages with no money down. I doubt you will find it on the website. I am not there yet and have a long way to go but from my understanding you can do it. Give it plenty of study and talk to Jeremy as he is a wealth of information.
Good luck and keep me informed. Tell him the boat guy sent ya. Thanks
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i guess where i messed up was trying to get a big loan all at once. i never thought mortgaging a property increased my networth. i just thought it increased the amount of debt i had. hmmm. if this is the case then i've been going about it all wrong. but it really is too bad in my case anyway then. the loans i wanted were for apartment buildings. occupied with good rental histories and i had papers showing what money i would have to pay in and how much i planned to net and even put in a "just in case" fee every month. i always wanted to skip the single family dwellings because the cashflow is so much nicer on bigger apartment buildings. only one roof to fix all tenants in one place so one place to drive to etc... thanks for your time. looks like i got some research to do.
-------------------- I'M GONNA BE RICH BEFORE I'M 30!!!!
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quote:Originally posted by airdoo: i guess where i messed up was trying to get a big loan all at once. i never thought mortgaging a property increased my networth. i just thought it increased the amount of debt i had. hmmm. if this is the case then i've been going about it all wrong. but it really is too bad in my case anyway then. the loans i wanted were for apartment buildings. occupied with good rental histories and i had papers showing what money i would have to pay in and how much i planned to net and even put in a "just in case" fee every month. i always wanted to skip the single family dwellings because the cashflow is so much nicer on bigger apartment buildings. only one roof to fix all tenants in one place so one place to drive to etc... thanks for your time. looks like i got some research to do.
In my experience your networth= your assets-your debts. If you add a property, for which you have a mortgage, and that mortgage is for more than the value of the property, then you just went backwards from a networth perspective.
If you mortgage a property for $80,000, and it's worth $100,000, then you just gained $20,000 in networth.
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quote:Originally posted by macdrsirules: Airdoo, I am not sure what one has to make to qualify as I am not a loan officer. From what I understand is that you can take out one loan, and then that property is counted for you and not against you and your net worth is increased. That should enable you to take out another loan which in turn would increase your net worth more and then enable you to buy another property. Repeating the process.
You need to call Jeremy to find out mortgages with no money down. I doubt you will find it on the website. I am not there yet and have a long way to go but from my understanding you can do it. Give it plenty of study and talk to Jeremy as he is a wealth of information.
Good luck and keep me informed. Tell him the boat guy sent ya. Thanks
What he is saying is the same principle to getting better credit. A person with bad credit can fix his/her problem buy depositing $1,000 in bank "A". Then take a loan against principle of $1,000 and deposit that in bank "B" and do the same until they have 10-20 different banks. Now it looks like a lot of money that they owe ($19,000 + interest) but in reality.....they don't owe anyting but interest. Its a quick way to fix credit.
SECTION 8 is a great way to go. Section 8 works for the owner. You have to get your rental qualified for the SEC. 8 program. Then they assest your Rental and take notes of the homes status (broken sidewalk, stained carpet, broken window, etc). Then you get the option to fix all those things. They they make a determination as to "How much would this Rental RENT out for". After this is established and agreed. The city/state finds people for you to live in your Rental. The Renter doesn't pay the RENT......the city pays half and the state pays the other half. When the renter moves out.....the city comes in and inspects the home for damages and gives you money for any repairs. The catch is: You are the LANDLORD while its RENTED.
Here is a CURVEBALL that I'm sure none of you have thought of:
Life insurance.......you can take a policy of "Life Insurance" out on ANYONE!! Hmmmm.....scratching your head huh???? Well, say you know someone with bad health and is expected to pass away within the next 3-5 years. You can offer them a Life Insurance policy "FREE OF CHARGE" on them if they go and take a physical for the Life Insurance policy. You offer them the cost of the Physical, expenses occured, and $50,000 guaranteed when they pass away to be left for the family. In return you pay the premium on a life instrance policy for the duration of their life in hopes to cash in. My buddy's co-worker has been doing this for a few years. He cashed in on his 1st policy last year where he had a $300,000 policy on a lady and in return, he gave the family $50,000. I asked where he got the idea and he said he read it in a news article where a guy was doing the same exact thing as he was and had taken out a $1,000,000 policy on a guy who had HIV. The person was told he would die in 1-3 years and he ended up living over 7 years while the guy was paying a HEFTY Premium on him. He SUED the guy (HIV guy) for $1,000,000 and his premium for the extra years past his life expency. Some people are just WRONG!!! But if you were going to die and wanted to give your family something nice, wouldn't you get on this waggon??? Think about it for a while.
Ok....the Money in a HOLE is really making me think. Guess I never thought of it that way Blue/BT. I bought my house back in November 2002 and did a 80/10/10 loan. 10% down, 10% equity, 80% convential. The home was $123,000. I put $12,300 down plus closing costs. Took a equity loan of $12,300 at ARM and $98,400 6.25% fixed 30 years. The Equity loan interest rate has moved from 4% to 9.625%. I always paid more on both and paid the Equity down to $9,000+ last year before the JUMPS in the INTEREST RATES....Now I have made it a PRIORITY to pay off the Equity loan and down to $5,500 and the other loan, I have paid it down to $87,000-. At first the fixed loan seemed like the right direction to place the extra money, but the equity is a DEFINATE now. I had a goal of paying both loans off in 5 years, which I was on target until the wife got pregnant. But in reality, the money is just in the savings account in the bank. The house moves up in value no matter if I pay the house off or not, so in your thinking, I really have to agree with your ideas 100%. Would you still aim at paying the Equity loan off if you were in my shoes??? (I make $60-70K a year). Max out the 401k each year, no IRA's as of yet. Looking to buying into SECTION 8 property in the next few years.....2-4 family FLATS. What are your thoughts?????
(I'm only 28 with $74,500 in equity, $60,000 in retirement and $10,000 credit card debt locked at 3.5% for the lifetime of the balance).
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Nice story on the trailer park......might have to look into that some day. But what people don't realize is TAXES, Water, Sewer, Road/repairs, Electrical hook-up fees, snow removal and lawn care. Some Trailer homes share wells/sewers and some have City Water/City Sewer.
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Here's a loophole I found(I've used it twice) for you real estate investors.
Since the Richmond market where I live is priced way out my investment range, I've bought 2 houses in other cities. I bought both of these as a "second home" instead of an "investment". Many banks offer second home finacing options that are as good as primary residence options.
If the home is too close to your primary residence, or is just obviously an investment, then it won't work, but I've done twice now.
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quote:Originally posted by Polarbear17: The problem with all your figures is that they are unrealalistic. 1.) Lets start with income , I'm 45 years old and have worked since i was 18 yet i have never made more than $15k a year and thats working two jobs most of the time. My employer dosnt have a 401K. 2.) Whats left to save after my expenses, $15K - $8k Child support payments -taxs = $5,000 left to pay food rent and every thing else. So forget about saving any money. 3.) Then you mention real estate , but dont you need a credit rating to get a morgate. AT 45 years old i have never had a credit card and cant even get one let alone a car loan or moragte. So when you tell people that making a million can be uptained please be more real in your figures , Experince in the real world shows that average people dont make lots and are hindered by the same corprations and banks as every body else.
I feel that pain! And I'm in the same boat, except I have a newborn who won't move out until I'm 60, and 6 yo (the expensive gender) who I don't want to move out until I'm dead, and a 16 yo starting college next year, and a 28 yo who wants to quit work and go back to college full time to get that BA...(I promised she could when she married me - o so long ago)
Been working one of those hi pay hi risk jobs in Iraq over a year now, and everybody thinks it's a gold mine. I had to demand $1000 of my own money to start an Ameritrade acct.
I highly recommend finding that once in a lifetime oppty, and make sure nobody gets in the way of your goal - enough (at least in the market) that you have a good chance of making bills while you sit at your kitchen table in your underwear every day.
Good luck brother! Take the bold chance! Gamble big - gamble smart.
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