All Forum Posts by: Alecia Loveless

@Andrew Bravo I’m in the same position. For my first two properties I’ve used OPM to cash finance the deals and then had off the books mortgages that were handled with my personal guarantee. One has been paid off and the second should be soon. Now I am under contract for a 4-plex and have made the decision to go with my personal bank which is a fairly local bank. They probably have about 20 branches, so it’s not tiny but still not a national chain. I feel confident in this decision as I’ve had accounts with them for 24 years and keep a decent amount of money with them.

I feel that the decision between a small bank and a large one is a personal decision that only you can make but one you must feel comfortable with once you’ve made it. Knowing my bank won’t sell my mortgage but keep it in house was one of the deciding factors that helped make up my mind. Also having the ability to call a person who is vested in the outcome if I ever have a problem was another deciding factor for me.

I hope this helps!

Alecia

@Grace Esteban I give my tenants little gift cards but expect nothing in return. Sometimes they give me something in return for my friendliness and service throughout the year.

@Bud Gaffney My goal for 2021 is to buy the 4-plex I’m currently negotiating for and to add 4 additional doors throughout the year.

@Wayne Brooks Thank you Wayne, you are absolutely right, and this advice from someone with more experience was just what I was looking for!! I will move forward now that I have realized where I was getting caught up, with the realtors actions, not the real estate, and make my decision next week. Thank you again!

@Michael Plante No, I wouldn’t go that high on the property as I’ll never be able to sell it that high unless there’s never another market correction which we know always does happen.

But in hind sight, you’re right I do believe I was letting myself get emotionally involved with the realtor as opposed to the property. Thanks for the insight!

Alecia

@Steve Morris Thanks Steve! Good to know!

@Charlie MacPherson Thank you Charlie! This is good advice to hear and was along the lines of what I was thinking. I do have plenty of cash should I want to go higher than the approved amount, but am taking the time to really consider the deal.

@Russell Brazil Thank you, this is the type of information I need to know.

@Laura Lamberth you also need to check the association rules or bylaws to make sure you can rent out the condo. Some places do not allow rentals.

I’m making an offer on a MF and my realtor included my pre-approval amount with my offer. I offered $25,000 less than the asking price as there’s no comps anywhere near the asking price. Granted this building is much nicer than anything else on the market, but my offer is also $30-40000 more than the other existing comps.

The owner only countered $5000 lower than the asking price. I think he’s just expecting me to pay the full amount I’m approved for since he knows it. The numbers still work at the higher price but my cash flow drops from a very good deal to just a good deal.

I’ve worked with this realtor for 20 years and he knows what I look for in a property but this is the first time I’ve attempted to get a mortgage. I’ve always done cash deals but since money is so cheap now I figure I can do more deals this way.

I told the realtor I would revisit an offer after the New Year.

Any advice for if I should just walk away from the MF or recounter and what I should do about the pre-approval letter next time, because clearly it should have just said the amount I was offering or something should have been handled differently, would be greatly appreciated.

And the 4-plex really would be worth the original asking price and probably more if it was one town over, location, location. Right?

Thanks for any advice anyone with more experience can give me.

Alecia