All Forum Posts by: Adam Sanders

New construction is usually the most expensive option when it comes to purchasing an investment property unless you are developing yourself and have experience. I'm unclear how you are coming up with a 16% ROI in year one if it is going to take you 7 years to get positive cash flow....

There are always going to be investors with better information than you who will get the jump on things. Big time investors perform their own research and analysis of markets they are interested in and make investment decisions based off of their findings. Personal investors are not really competing with these big investors though. Real estate is so location specific and fragmented that there will always be opportunities for smaller players. Getting in ahead of big macro events is great but not essential to profitable investing.

It really depends on their situation. One of the first things you need to do is determine what they want to get out of the deal. Are they just looking to move ASAP and avoid any hassles? Do they absolutely need every penny of equity? Until you know what problems they need to solve it is hard to put together a compelling argument for the fact that you can fix them and that it is worth giving up their equity to make it happen.

Unless she is granted some atypical rights within the lease I don't see how she could stay in the house other than buying it herself. She is going to have a hard time staying long-term if her main reason is to sublease the property via AB&B. 

It really depends on how credit worth you are, your experience level, how much money you have to put into the deal, and how good the deal is. If at least one of these are not good (and preferably multiple) it can be very difficult to get short-term financing. Banks are usually the most strict when it comes to lending requirements so I wouldn't necessarily look at them as a fallback option if hard money isn't available but you it doesn't hurt to ask.

Do a lot of reading on this site. There is a ton of great information and a lot of different ways to be involved in real estate. Also, start reaching out and attending local real estate events in your area. Start with your local real estate investors clubs/groups and meet as many people as you can who are already involved in real estate.

What is your level of experience in real estate development and construction? Your experience level (which correlates to how risky investing in your project would be) is going to dictate which/if investors would be interested.

Possibly. Every hard money lender is different and if the deal is fantastic they may be open to more creative terms while others are very strict with their requirements. The only way you will know is by offering them the opportunity.

Inheriting tenants that you have not vetted brings additional challenges on your part. You now need to thoroughly vet the lease that these tenants have as well as the tenants themselves and their payment history. If these are bad tenants with a lease that is very favorable to them you could be buying a lot of headaches as well as some expensive problems. Personally I prefer to find my own tenants and use my own lease and wouldn't see purchasing an occupied property as a positive unless I was buying from a very experienced investor that I trusted explicitly.

Welcome to BP. I would take some time to do a lot of reading through the forums/blog. This is a pretty common question and you should be able to find  a lot of good responses. There are a lot of different routes you can go and you won't know which is best until you have a better understanding of the options.