I'm looking for income producing properties ?

Question

Hi,

I'm looking for income producing properties, where is a good place to look ? REO property ? foreclosures ? local mls ?

N/A N/A · Answer

Your very welcome, but it appears you are not sincere in your thanks.

I meant no offense, and only offered my point of view and assistance.

Good luck in your investments.

N/A N/A · Answer

Hi,

You bring up some good points and I believe networking in the real estate business is very important but shouldn't you rely on yourself to find good deals ? Are you a real estate agent ?

N/A N/A · Answer

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I also have Stated Income Commercial Loans up to 90%LTV up to $1 Million with a 700 minimum credit score

Paul Khin
239-573-7376
pkhin@josephscott.com
www.josephscott.com

N/A N/A · Answer

Jessie, you really bring some sound advice in the area of real estate marketing.. your experience/wisdom is genuine.. I just started with investement properties,  I am here in the Atlanta, Ga area, I have some agents that I am looking to put on my team.. If you have any century21 agents, please refer them to me..

I am also a Loan Officer, I specialize or niche in sub-prime financing.. which is one step above hard money, but one step below conforming or A-paper lending(perfect Credit).
example: we can get investor loans funded with as low as a mid 500 fico..

now if your strategy is to flip houses, then subprime financing is not for you.. stick with hard money.. however if your strategy is to have income or rental properties, then subprime finacing will benefit you especially those holding their properties to gain long term equity. average rates are between 8 - 10% depending on credit.  which is of course higher then prime rates, but still lower then hard money.  your objectives or goals to maximize subprime financing should be to maybe hold the property for 1 - 2 years, (You may have to eat a 1 o 2 year prepay but it  will lower the rate from a loan with a zero prepay,)while you build your credit back to an a-rating, then refi your cash out for more investment projects.

theirs tons of new products, on the market that fit your particular scenario, such as the option arms, option arms give you the luxury of choosing/paying your mortgage 4 different ways each month.. 30yr P&I, 15yr P&I, Interest only, or whats called Neg am(Negative-ammoritization)
the neg am, could allow you to get into a million dollar home for like $3k a month, they have 1% start rates.. these loans are really good for short term properties, like a year or 2.. especially if the property is in a desirable market..   the cons with it is that if you stay in it long time, you could end up in a negative equity situation..because your payment is lower then the p&I and ther is no principal going towards the balance..that is if you continue using or paying on the neg am choice..
the option arms and neg am's are really popular in California..but their making their way across the u.s.

Mike Smith · Answer

Jessie, can you clarify something for someone who is in the process of putting a team together? Are you suggesting I engage or develop a relationship with a buyer's agent on deals or to bring me deals s/he discovers or are you suggesting developing relationships with seller's agents to let you know when they have something for sale that might be of interest? As I type this, I'm guessing your answer is going to be "both."  :D

I think any "anti" agent sentiment you might be getting is because a lot of what us newbies hear is advice of how to do things yourself (such as find deals) which implies to us that we should avoid realtors and find the deals ourselves.

Thanks for your input.

Brian Schroeder · Answer

So you don't have any client's that you call first if something come up that sounds like a great deal, to see if they want to jump on it,  because you know they have the resources? 
If that client say's YES I want it,  then you don't have to advertise, (lowering your cost)  If he say's no then you start your normal process.

N/A N/A · Answer

Do you mean 'who' or 'how'?

I assume you mean who so I will go from there.

Each agent is different in how they market a property.  For instance since I focus on Commercial real estate and I use the following methods:
Heavy Internet exposure - 10 websites plus possible a unqiue website for the property
Signage
Newspaper advertising for the first month
Email campaign

My wife however, specializes in residential and she uses the following:
Internet exposure - 3 websites 
Signage
Newspaper advertising for the first month
Magazine Advertising for the first month
Email campaign
Calling her clients.

As for who - we contact anyone we have who is looking for this type of property.

The commission really doesn't matter, what matters is getting the house sold.  Remember - Referrals and repeat business.

The divorce may produce 2 clients, husband and wife and I want them both.

Hope this helps.

Brian Schroeder · Answer

Thanks,  Jessiesc that is what I'm looking for.   Say,  when a property comes out on the market,  a devorce couple,  BAD DEVORCE,  they just want it sold,  and they want it sold tomorrow,  you explain to them if you want it sold tomorrow, well I will need to list it at 60% of the value.   They say I don't care I just want XXXX out of my life.  so, sell it at 60% I just want it done.  This is agreed upon by both man and wife.                                                                                                               The big question is how do YOU call.   AND WHY,  because they only pay you the standard commision?

N/A N/A · Answer

As a real estate agent, I can tell you this (I don't know what area you are from and am only familiar with Fl laws pertaining to commissions and the like) but...

What makes a real estate interested in your well being are the following:
Referrals - Good news travels at the speed of a snail, bad news travels at the speed of light!
Repeat Business - If you are happy with your investment, you will be more inclined to use the same real estate agent for other purchases.

As for the commission, there is no standard (not supposed to be anyway).  They are what they are.

A good agent will show you properties no matter the commission because we live and breath by referrals.  What we don't make on one, we hope to get a referral to make a bit more.   Actually, an agent really shouldn't be telling you what the commission rate is on a listing.

The bottom line here is YOU the customer!  If an agents helps you make  a good purchase, you're going to use them again.

Although I personally would welcome the extra commissions you describe, I don't think they are necessary.

If you as an investor make money, then I as the agent will make money.

My 2 cents worth.

Brian Schroeder · Answer

I do believe that you get what you pay for.  With that said,  I have been thinking about talking some re agent's in my area.  My question is what would make an agent very interested in my well being?  My thought's are, if the going rates is 5% to 7%, I will offer 10%.  But for my 10% I would ask for some insurances.  What do I mean by that?  I mean if the going rate is 7% (I think that is what is)  then I will give them another 3% on top of there 7% they got on the sale, from the seller.  And if I don't make any money on the deal.  Then I will pay them 4% on the sale, when I sell the property,  if I do make money then I will pay the full 7%.   So, everything said and done they can make upward's of 17%,  that is if I make money,  if I don't make money,  then I'm only paying the going rate.  (7% from the sale to me, +3% and the sale from my sale of 4%, would be a total of 14%, the normal commition)   I'm thinking that is generous,  because I fell that the re agent should lose too,  maybe if I only pay only 2% at the sale of my property.  That way we both have something to lose, if the re agent is a sleep at the wheel,  and doesn't do there home work.  my feeling on this is if I lose they're not going to try to sell the propery knowing there is only 2% in it for them.  If I did the first option where they could get 17% and the worst thing that will happen to them is a normal sale of 14%, then I would tell them that if I lose, then  you lose my business.