Since you aren't familiar with rural lending practices or your ability to use a search engine is extremely limited or you just finished off the latest quarter ounce of bud, whichever the case my be. One can purchase a property with 25% down (equity at closing) from a local lender that is familiar with the person they are issuing the loan to, the issuer's family or they added exceptional restrictions to the loan regarding the remodeling of the property or all the above. This is especially the case if he had good credit at the time, which he said he did and had the capital to cover the remodel costs, which he said he did. For someone that is constantly bragging how well off they are you sure don't act like you have much in the way of personal assets.
I find it very cute how you need to get into the personal insults just because I doubt your fable. You asked me a question and I answered, then you consider it bragging. Ok so then, he had $7.5k cash on top of another $6k to pay for repairs, all from a McD's assistant manager's position and right away? Maybe those jobs paid a lot more back than they do now or is it only in your rural area that this phenomenon occurs. Very interesting. Additionally, you said construction loan not a mortgage. They are different. Maybe the construction loan was rolled into a mortgage upon rehab completion, which I know has been done in the 2000s boom. Apparently his relationship with the bank is quite special, as a loan like that is by no means common for an individual with a poverty level job and was not back in the 1990s. I'm guessing a cousin or two were part of that bank. The rest of the cousins must have contributed by being the free labor. That's quite an interesting scenario, sounds very common & possible for everyone. Those damn lazy McD workers, why aren't they all starting up real estate empires, they obviously make enough to do so.
The questions you ask are common sense to those of us living in smaller communities. It is obvious you are unfamiliar with this type of close knit community. Your unfamiliarity and contempt for rural areas began your name calling. I'm simply crawling down to your level to communicate. I assumed that since you started this tactic that this was your choice to continue in this childish direction. You are the one that said I couldn't afford what you spend for your drug habit. This is not bragging on my part. Your math skills are really lacking. If the bank initially appraised the home at $40K and he got the home for $30K that is a built in 25% equity down payment. 25% of $40K is $10K. $40K minus $30 K equals $10K. I can only imagine that initially it was a construction loan or remodel loan and then rolled it over to a typical mortgage. I don't know whether you attended college or not but I graduated with cash in my pocket. I worked all of the way through college and added to the nest egg I started in high school. I had to pay for most of my expenses in college as well. I can only imagine others were as thrifty as I was. So I can only imagine my friend had savings coming out of college. I know for a fact that he didn't have relatives in the bank because, at that time, the local bank manager was my uncle and he didn't care for my friend's father. You're quite cynical as well toward McD's. I don't particularly care for their food but I don't think of an Assistant Manager at one being poverty level. Of course if you were born with a silver roach clip in your mouth you probably see it differently. I know the concept of "friends" seem to escape you as well and that is a shame. You should have some, they are quite a blast to have around. Especially ones that you have had for 30, 40, 50 years and can always count on. The whole point of my posting this example was just that, to show an example of a possibility. For whatever reason it has totally pissed you off. Get over it and move on. Go roll another joint and go back into your comfort zone in lala land.
He "bought" it for $30k. So WTF does it matter if it was appraised for $40k or $1k or $1mil? If the purchase was 75% bank financed then he goes to the bank for that amount. If he applied for $40k as a bulk construction loan rolled into mortgage, ok then, it only goes further to illustrate that he needed a significant stake, $10k to even start this infomercial tale of rags to riches. And obviously you folk in rural areas do it different, but in the real world outside the boonies where your friend's uncle does not run your main bank, you simply don't have such easy, borderline handout loans available. You put forth a story of a "friend" who was obviously in a dire financial situation to take a low end job with a Master's Degree. So what the f**k are you talking about graduating with cash stake? What kind of sense does that make? He then magically turns it around within months to create a rental property all while supporting two and taking care of his wife. Putting the total disconnect between what McD actually pays to low level employees (assistant manager position being one of those) and the capital requirements for such feats, I'm also wondering about time commitments. It's in total conflict. I'm not even going to bother with the rest, just going to say that you're doing quite a fine job representing the rural folk. It's comical most of all. I notice you have a lot of "friends" who apparently manage to destroy basic common and financial sense to smithereens. I just happened to read your other posts in the $1000 signal service thread. So I understand, we live in two different dimensions. P.S. Have not smoked in almost two years, but you obviously cannot seem to put whatever it is you rural boys are cooking up in your bumblef**k meth labs.
Yes "us rural" edumacated folks do it different in da back woods. Da banks here are interested in making money da ole fashioned way, good secured loans to people they know will pay dem back. Da yup da yup dats wat we do in da back woods all righty. My friend wasn't in "dire financial" straits, you said that. I said he graduated with his Masters and had to take a job at McD's to take care of his wife. She was in a condition due to a car accident that she couldn't be moved. The accident occurred in the area he and his wife grew up in, not where he went to school. He could have gotten a great job about anywhere with his degree and from UW but his opportunities in this area were limited at the time. The disconnect and conflict is the way your brain full of dead brain cells processes information. Remember that the profits from your habit has promoted those meth labs and all of the dead junkies behind them for years. Proud of yourself? You must be to give yourself a nickname you are so proud of. Move on addict.
Hear that guys? 5 x 150K properties in 3 years on 12 bucks an hour. With a lame wife, medical bills, 3 kids and college loans. This guy must be the Donald Trump of McD's. Classic thread.
It's like sitting in a bar listening to a drunk just continue to invent more and more ridiculous claims to substantiate the original lie.
LOL hilarious. . I know a few people that got rich flipping. But that was over the course of decades, not months..