Financing...

I'm learning that being an owner of real estate investment companies helps you learn ALOT about the financing restrictions of your local bank.

For instance, I learned over the course of the last month that my local credit union has restrictions of the following types:

A. Business Loans - Minimum loan of $25k

B. Standard Mortgage - Minimum mortgage of $10k (per house) (not based on the value of the home, but rather, the fact they will NOT do a loan under 10k).

C. Home Equity Loan (HEL) - Take as long as a mortgage to get all worked out (including the need for an appraiser), but once achieved on a property, can be borrowed and repaid over time (just like a mortgage). The rate is traditionally a fixed rate.


For me, the HEL makes the most sense, especially if you are buying auction or tax foreclosed properties (which will traditionally have a value less than $10k each and you wont have to purchase enough to get over a $25k threshold, like I was told).


Just some potentially helpful information. :)

-Tim

House closings...

During the month of October, we will have closed on (3) new rental properties (assets). Each of these three is currently rented and generating positive cash flow (rent - minus expenses = whats leftover = cash flow).

The one property I am exceptionally proud of, as we were able to pick it up for a good price. It did need alittle rehabbing, but when you pick it up at such a good price, it enables for the cost of rehabbing to be "built-in".

For example, if you pick-up a rental, which averages around $20k in Central Illinois, USA, you're still likely going to have to put some invest (rehabbing) into it, to make it liveable/rentable, therefore bringing your total investment in that property to around $25-30k, depending on what is needed. If you are able to pick-up the rental for under $20k, the cost of the repairs can be "built-in" and hopefully, you can get the house, rehab it and get it rented for under $20k.

Nonetheless, we're looking forward to an awesome and explosive month of growth. With November right around the corner, my family is going to head down to Talladega, Alabama, this weekend for the NASCAR Craftsman Truck and NASCAR Sprint Cup Series races. When you buy assets, you can afford alittle rewarding of yourself.

Remember in business, you pay YOURSELF first, then the bills.

ILD Global / Network Marketing

I am an Independent Business Owner(IBO) in ILD Global, a division of Amway Global. While I will admit to not taking full advantage of the opportunities that ILD offers, I have participated in several of their VERY motivating seminars.

My "membership" in ILD allows me to continue to grow as a salesman. I am not pushy and to be honest, have hardly tried to push the products. I do enjoys their energy drinks.

I recommend, as does Robert Kiyosaki (RK), that whomever would like to become and develop into a good salesperson (and ultimately a good business person), join a network marketing organization.

Joining ILD cost under $100, rather cheap for the experience and knowledge you have the ability to obtain.

Purpose

The purpose of this blog is:

A. to have the potential to help others..

B. help me avoid my A.D.D problems and allow me to remember the good times and bad times, on my quest to become a Millionaire!

If anything catches your eye while here, I'm glad I could help.