All Forum Posts by: Alexander Zurn

@Lewis Daniel this may not be what you want to hear but google is possibly the best trainer available right now… and it's free! Youtube as well. In my experience, which is minimal, the real estate agent & broker can be (not in all cases) very egocentric. Again, not all but most and in this particular circumstance it seems like you experienced a bit of that. This business in a sense is very self-reliant, which is different than egocentric. By this, I mean that you need to rely on yourself for training, etc. Use BP as well! 

For example you could search:

1. What are real estate agents good at?

2. How do real estate agents do …… ?

You will find SO many articles and who knows maybe open up your own brokerage because you learn so much! It comes to how bad you want. Hands on training I'm sure is available but most agents and brokers don't have time for it as time = money.

Google & BP is my advice! Good luck

@Jerad Gardner http://www.mnhousing.gov/ - here is the link to MN Housing. Looks like they offer some assistance (downpayment and/or closing costs), take a look

@Jerad Gardner i am doing the same. FHA requires 3-4 unit properties to be self-sufficient, which simply means the piti (principal, interest, taxes, & insurance) = 75% of the current rents and/or market rents (whichever is lower). This is a good way to analyze a deal before you get into the loan part, it being self sufficient or not, so be sure to consider it.

Also - if it is your first property, you should look into a Minnesota first time homebuyer program. I am not sure what they offer but most offer a down payment or closing assistance amortizing 2nd loan, which is essentially less money out of pocket. Some states even have forgivable loans if you keep the home for 2-5 years (depending on the state). 

@Ryan Wiles I agree with all that is said so far.

Be sure to explore the option of a First Time Homebuyer Program that your state may offer. These are great products these days because the interest rate can be lower. The state programs generally offer many loan products and can even offer down payment or closing cost assistance (i.e. less cash out of pocket). Some states even offer non-repayable grant for first time homebuyers, college grads (typically within 36 months), etc. A program may even offer a product with NO MI, which leads back to the point @Peter Mckernan & @Christopher Giannino are making. A no MI loan will simply be off set by an increased interest rate and, therefore, be accounted for an expense to your business.

I used to struggle with this too. A friend once told me simply to consider it an expense and plan for your tenants to pay it off for you. It will simply be a matter of perspective that your tenants are paying your mortgage including PMI. Once you can get your head around that, the (now reduced) hit of PMI (which has been reduced .6% of the loan amount paid monthly) will be easier to shake until you reach 78% LTV.

@Jeremy Mahan a friend of mine did this right before he planned to sell his house. I think it took about 6 weeks to hear back and once it was approved, he was able to market the home a "lower property taxes on the block" (something to that affect). So while it is worth the effort, you'd have to consider the timing.

@Christian Bors has the experience I speak of. Any thoughts?

Hi @Whitney Hutten quickly reviewing it as the others went a bit deeper into the numbers, just wondering why $40,000 down? Is the loan requiring it? I only ask because a more traditional 20% down ($24,000) seems like you could be saving an additional $16,000 for reserves or another investment?

I used Fiverr for a logo and it was great. Do a little research on the person you pick (look for reviews, ratings, etc.) and they will be in constant contact with you. You can pick from a plethora of add ons that cost an extra $1 or $2 (i.e. logo's as pdf, delivered within 24 hours, 4 pack, 6 pack, etc.). It is credible.

@Benjamin Alesi

Pros: access to MLS, access to visiting properties w/o seller agent, your schedule, your decisions made in negotiations, overall more control, opportunity to be an agent for others and make money from that

Cons: fees ($2000-$3000 upfront), more time and certainly paperwork if you are an agent for you or someone else, renewal fees (as @Max T. mentioned, 2-3 deals per year just to pay for renewal fees before profiting), time - varies by state but usually a 40-60-90 hour course is required to complete.

It really comes down to money. I plan to get it for all the cons but right now I am a few weeks away from closing on my first investment and I want to continue to save for the next. Once I can afford it, I will get it. 

Maybe budget your finances. See how much money you have, where you have room to save more, etc. and go from there.

@Vincent C Riccio I would agree with @Chris Grenzig & @Tamiel Kenney in using the 50% to quickly factor a good deal vs a bad deal. Upon initial valuation, the 50% can lead you to spend more or less time on a deal. Even just starting out, you want to develop habits that will make you efficient with your time. 

A good educational method could be going through 10 deals very quickly listed in your area and calculate the 50% rule. Of the ones that meet it, pursue a little further. Keep going from there and then get down to specifics because I don't believe you can simply calculate the 50% deal as a deciding factor as entering a deal.

@Edward Apostol I would reccomend listening to podcast 205 on how to increase rental income. The guest, Jered Strum, has great ideas and it seems as though you could utilize some. Specifically, I am referencing his idea to ask the tenants if they want a washer/dryer. If they do want it, he provides it but increases the rent to compensate.

Two things to consider:

1. Jered does this in a large apartment complex. So he asked all of the tenants and some came back saying yes and others no. The ones that wanted it he increased the rent by $20-$30 (maybe a bit off). Which adds up YoY.

2. Whether the place is rented or not, you're in a position to ask current or potential tenants if that is something they want. Tell them the current rent and then tell them the add-on price for a washer/dryer. 

This technique may put a little more accountable on the tenant to repair it if it ever malfunctions as they understand that they are paying for it and asked for it. I agree with @Kim Meredith Hampton that you don't want to have to pay for the responsibility of maintaining it. However, you know your neighborhood/gated community best in terms of whether potential tenants are looking for this.