Comments on: How I Made A 113% Return In One Month With Real Estate http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/ How to Quit Your Job and Start Your Own Business Tue, 18 Nov 2008 22:42:33 +0000 http://wordpress.org/?v=2.6.3 By: Brian Armstrong http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-2206 Brian Armstrong Mon, 27 Oct 2008 19:42:04 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-2206 Yep buying the first one is hardest! See if you can find a good mentor (someone who is already wealthy from investing in real estate). That will help I think, it sure did for me! B Yep buying the first one is hardest! See if you can find a good mentor (someone who is already wealthy from investing in real estate). That will help I think, it sure did for me!
B

]]> By: Harper http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-2205 Harper Mon, 27 Oct 2008 19:35:40 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-2205 I can't wait to start learning real estate. I just finished reading Rich dad Poor dad and that book help motivated me to learn about investing, cash flow, and real estate. Your website also motivates me too!!! Keep up the good work I can’t wait to start learning real estate. I just finished reading Rich dad Poor dad and that book help motivated me to learn about investing, cash flow, and real estate. Your website also motivates me too!!! Keep up the good work

]]> By: Brian Armstrong http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-1112 Brian Armstrong Thu, 06 Mar 2008 22:19:57 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-1112 Hi Pawel, Yes the insurance is different while its under construction, I believe its called "construction insurance" or something to that effect. I don't really know the details on how it's different (I think properties that are under construction dont have all the locks/doors in place sometimes and can get the construction supplies stolen). But really I just did this because my mortgage broker told me to, and they took care of everything! I wouldn't have known to get it otherwise. Thanks for the kind words, Brian Hi Pawel,

Yes the insurance is different while its under construction, I believe its called “construction insurance” or something to that effect. I don’t really know the details on how it’s different (I think properties that are under construction dont have all the locks/doors in place sometimes and can get the construction supplies stolen). But really I just did this because my mortgage broker told me to, and they took care of everything! I wouldn’t have known to get it otherwise.

Thanks for the kind words,
Brian

]]> By: Pawel http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-1111 Pawel Thu, 06 Mar 2008 22:08:14 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-1111 I just found your website the other day. As some one who is interested in real estate investment I found your articles on your real estate very striaght to the point and clear. Sharon up above is right about the amount of clutter these days. Your written word is, useful and very helpful soo thanks for that. You mention having insurance during the construction period. Will this be the same insurance you will have on your investment property while you own it? Also, what type of insurance did you purchase more specifically, in your first real estate deal, does it matter? Thanks, Pawel - Connecticut I just found your website the other day. As some one who is interested in real estate investment I found your articles on your real estate very striaght to the point and clear. Sharon up above is right about the amount of clutter these days. Your written word is, useful and very helpful soo thanks for that.

You mention having insurance during the construction period.
Will this be the same insurance you will have on your investment property while you own it?

Also, what type of insurance did you purchase more specifically, in your first real estate deal, does it matter?

Thanks,
Pawel - Connecticut

]]> By: Brian Armstrong http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-974 Brian Armstrong Thu, 17 Jan 2008 16:56:58 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-974 I should also mention that you have insurance in case the house burns down, floods, etc while you are in the construction period. I should also mention that you have insurance in case the house burns down, floods, etc while you are in the construction period.

]]> By: Brian Armstrong http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-973 Brian Armstrong Thu, 17 Jan 2008 16:56:00 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-973 Hi Sharon, thanks for the kind words. The credit crunch has made it tougher to get loans, but it is also a good thing because with fewer people able to get loans home prices have dropped drastically. There is a good and bad side. My business was able to show enough income for me to get the loans, so the credit crunch actually helped. To answer your other question, i doubt I could have weathered a $25k miscalculation, although that is a LOT of money for a plumbing issue!! The real answer to your question is to (1) get an inspector to come look at the house and (2) get three contractors there to bid repairs BEFORE you ever purchase the house. After you get an offer accepted you have an option period to do these inspections. If you decide you don't like it you can walk away. You won't eliminate 100% of the risk, but both inspectors and contractors do that type of stuff for a living and should be able to eliminate most of the unknown costs. The inspector will test all the plumbing, electrical, roof, foundation, etc. Good luck! Brian Hi Sharon, thanks for the kind words. The credit crunch has made it tougher to get loans, but it is also a good thing because with fewer people able to get loans home prices have dropped drastically. There is a good and bad side. My business was able to show enough income for me to get the loans, so the credit crunch actually helped.

To answer your other question, i doubt I could have weathered a $25k miscalculation, although that is a LOT of money for a plumbing issue!! The real answer to your question is to (1) get an inspector to come look at the house and (2) get three contractors there to bid repairs BEFORE you ever purchase the house. After you get an offer accepted you have an option period to do these inspections. If you decide you don’t like it you can walk away. You won’t eliminate 100% of the risk, but both inspectors and contractors do that type of stuff for a living and should be able to eliminate most of the unknown costs. The inspector will test all the plumbing, electrical, roof, foundation, etc.

Good luck!
Brian

]]> By: sharon http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-972 sharon Thu, 17 Jan 2008 07:41:33 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-972 Thanks for all of the good information on your site. I appreciate the way you take your successful concepts and just lay them out there in a clear fashion for anyone to read. It is such a relief to find your site. In my pursuit of learning the subject of your blog, I have been dealing with people who sell "free ebooks" and the amount of clutter in their sales pitches and in my inbox, and the amount of obfuscation as they allude to a concept without telling you what it is, has just been stultifying and exhausting. I am pretty much going to unsubscribe from all that stuff and save myself the time, now that I have found your blog to study. It really shows me the value of your approach. Again my thanks. My actual question on the subject is, how has the credit crunch after the subprime meltdown affected your ability to obtain a loan on "stated income"? It seems like a lot of things "went right" for you on this transaction. Is your income such that you could have weathered finding a major expense that precluded renting it out? Say, if that leak had turned out to cost $25,000 to repair and rendered the place inhabitable until fixed? Or did you factor worse-case scenarios into your math? That is what has impressed me about this, that you knew how to do the math and assess the risks. Thanks for all of the info and thanks for the blog! Thanks for all of the good information on your site. I appreciate the way you take your successful concepts and just lay them out there in a clear fashion for anyone to read. It is such a relief to find your site. In my pursuit of learning the subject of your blog, I have been dealing with people who sell “free ebooks” and the amount of clutter in their sales pitches and in my inbox, and the amount of obfuscation as they allude to a concept without telling you what it is, has just been stultifying and exhausting. I am pretty much going to unsubscribe from all that stuff and save myself the time, now that I have found your blog to study.

It really shows me the value of your approach. Again my thanks.

My actual question on the subject is, how has the credit crunch after the subprime meltdown affected your ability to obtain a loan on “stated income”? It seems like a lot of things “went right” for you on this transaction.

Is your income such that you could have weathered finding a major expense that precluded renting it out? Say, if that leak had turned out to cost $25,000 to repair and rendered the place inhabitable until fixed? Or did you factor worse-case scenarios into your math?

That is what has impressed me about this, that you knew how to do the math and assess the risks.

Thanks for all of the info and thanks for the blog!

]]> By: How A Good Real Estate Deal Turns Into A Bad One http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-887 How A Good Real Estate Deal Turns Into A Bad One Wed, 05 Dec 2007 06:20:51 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-887 [...] few weeks ago I told you about a real estate deal I did that gave a 113% return in one month. Well, I am quite human and make mistakes just like anyone, so today I’m going to tell you [...] [...] few weeks ago I told you about a real estate deal I did that gave a 113% return in one month. Well, I am quite human and make mistakes just like anyone, so today I’m going to tell you [...]

]]> By: carlos http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-833 carlos Sat, 10 Nov 2007 03:59:13 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-833 nice work brian. nice work brian.

]]> By: Brian Armstrong http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-813 Brian Armstrong Fri, 02 Nov 2007 03:04:35 +0000 http://www.startbreakingfree.com/200/how-i-made-a-113-return-in-one-month-with-real-estate/#comment-813 Hi Bruce, You're right it would have been cheaper if I'd done the work myself. I chose not to just because pounding nails doesn't sound like fun and the whole idea of passive income is to have more time to do stuff you enjoy, so I passed. But I know many investors do this and it can help if you're willing to do some sweat equity. Being self-employed means I had to get a higher interest rate loan. It was stated income. Thanks! Brian Hi Bruce, You’re right it would have been cheaper if I’d done the work myself. I chose not to just because pounding nails doesn’t sound like fun and the whole idea of passive income is to have more time to do stuff you enjoy, so I passed. But I know many investors do this and it can help if you’re willing to do some sweat equity. Being self-employed means I had to get a higher interest rate loan. It was stated income. Thanks!
Brian

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