re: Buying investment properties...

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post those pics of your property I Love Bama

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I can't believe anyone believes that ILB, who was bragging just a year ago about going from being an intern to having a big boy job, has a real estate portfolio that would rival Donald Trump.

He very well may have bought A rental house but he obviously talks more than he walks and from me being in this business for the past 15 years I feel sorry for anyone that takes his advice. A lot of it is off base or stuff regurgitated from infomercials.

BTW, rentals suck and the average person isn't getting rich off of them because banks aren't going to just give you an open checkbook to buy enough to generate serious monthly income. You may make some steady money but it's a lot of headache IMO. The only way I would do it is if I set up a plan where I get my 10 year depreciation off of them then flip them on year 11. You would have to start buying a few a year though to get to that point. I was going to do this and use the ones I flip in year 11, 12, 13 etc as my retirement but then I had something bigger come along I put money into. Even doing that I would turn it over to a management company to deal with the headaches for me but then again I hate people so it just isn't for me.

I would rather owner finance with $5K down and nail them on rates and late fees. I have 4 I have done this on. One of them I have had for 12 years now and the people always pay late but they always pay eventually. The good thing is that they are no where closer to paying it off than they were the day they bought it because of late fees. The greatest beauty of it is that they also pull their own maintenance so no 2 A.M. calls that their A/C is out or some bullshite.

There are plenty of oil field trash and plant workers around here that can afford the $5K down and monthly notes but because of poor life choices and/or an ex-wife they have horrible credit and can't buy through a bank.

One of my friends actually wrote a book about this very thing. He owns over 65 owner finance properties now. He has owned rentals including whole apartment complexes and he dumped them because of the headaches of rentals vs owner financing.

I only do this on properties I get cheap enough though. I flip anything else and mostly build on spec.

My friends book