All Forum Posts by: Aaron Toliver

@Kevin Siedlecki

@Diane G.

Thank you both. I had my suspicions. How do you guys find the proper rent for your area? I've been calling other for rent signs in the area, but a few properties I'm going after aren't close to any. Apartment Guides are really great, but I know the single family homes I'm going after can be bumped up a bit. 

Do you ever call property management companies?

LOL Let us know when you're burnt out. My REI group already knows that I like to ask a lot of questions and I give them the same warning. With that said on to the next question!

I've already got an LLC set up, and I've got decent credit. Is there anything I should look out for when applying for a conventional loan in the future if my LLC is paying me? After listening to 50+ BP Podcasts and reading 30+ articles, I'm under the impression that being employed helps because of steady income. My concern is about when I do this full time. Does income from my own real estate business help or hurt me when applying for a conventional loan?

@Account Closed, you're amazing. This has been one of the most helpful threads I've read in a while. 

I'd like to ask you about putting a home under contract. I've contacted several motivated sellers with old fashioned letters of intent, and I have four really great deals on my lap that I have to get under contract ASAP before they change their mind. I don't want to just hand them a boiler plate contract without understanding the language. 

I don't have the $ for an attorney to draft one for me, and even if I did, I want to understand them.

What clauses should an investor include in said contract?

Would a wholesaling contract have different language or additional clauses? (NOT wholesaling, but just in case)

Would a lease option sandwich situation involve a contract with different language or additional clauses?

How accurate is Zillow's rent estimator? I've been getting rent numbers by calling around, using apartment comps and rent-o-meter (which seems to estimate on the low side in Charlotte). I've done two comparisons so far; one has been accurate and Zillow's way higher for the other one. I figured I'd ask you guys about it. 

Keep your eye on that HOA

Look for a legitimate REI group in your area. A few bigger pockets members in my market are a part of a really great meetup. I'm a part of that group now, and if I ever need to wholesale I have my cash buyers list right there.

So I've found three deals that I would like to bring to some partners. All three make 200+ after expenses and are above 10% cap rate. But here's the problem. The way a partner finances the deal could affect all those factors, right? I've just been penciling in 20% down at a 30 yr fixed as a default. 

Also, should I write a letter of intent with purchase options before I bring the deal to a potential Partner? Should I view the property before bringing the deal to a potential partner?

Congratulations @James Barnhart.

A flip and a rental are great starts. I'm always interested in how people enter the REI world. I'd love to ask you some questions about how you made them happen.

Very nice William E.

I'll go ahead and throw out one of the terms I saw in the glossary.

Conventional Mortgage – A type of mortgage not insured by either the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA), and thus usually requiring a 10 percent – 20 percent down payment. (HUD Homes may be purchased with a conventional mortgage.)

So I hope you all will indulge me here. I just thought it would be a fun little excercise. I'd like for you to imagine this is a high school course called Introduction To Real Estate. The intention is to steer the students towards real estate investment. I'd like to make a list of terms and concepts that I need to be intimately familiar with. I'll start.

Real Estate - property comprised of land and the buildings on it as well as the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water and minerals. Although media often refers to the "real estate market" from the perspective of residential living, real estate can be grouped into three broad categories based on its use: residential, commercial and industrial. Examples of residential real estate include undeveloped land, houses, condominiums and townhomes; examples of commercial real estate are office buildings, warehouses and retail store buildings; and examples of industrial real estate are factories, mines and farms."

-Investopedia

There are plenty of terms and concepts an aspiring Real Estate Investor needs to know to be competent. So everyone throw one into the pot.