All Forum Posts by: Alexandre Marques dos Santos

@Charlie Anne

That would make it a bit better, but still, seems tight.

You mentioned you were out of state investor. I would check better yields. I have all my rentals giving ex ante, 4.5+ CoC return.

Good luck

@Charlie Anne

Personally i would be out of this deal. Does the 175 cash flow accounts for brokerage ( depending on your state), plus eventual maintenance?

3% or even 4% sounds not attractive. As someone mentioned 1 month would eat most of your cash flow for the year. If you include a potential maintenance, than you are dead!

If you are looking for appreciation, then its some i cannot argue as goes to individual scenario.

I use financials ( rental) towards to decision and appreciation being the cherry in the cake...

@Jerel Ehlert

Sorry been out for while.

I need a fair estimate of the cost for the whole process. The house was leased with the same tenant since it was built. Now we are looking into the owner’s finance.

I need someone that can draft all paperwork on the terms agreed. Also need to establish how to collect prorated insurance + taxes and to put in a paper questions about maintenance ( ultimately the colateral of the loan)

The house is in magnolia very close to the Woodlands.

@Kaelyn Motzel

Thank you

the 3% is the full buyers commission. but you will have to be connected to a broker (at least in NJ). the broker will get 50% of that and will pay you the rest, in best case remains 1.5% on your pocket. I am an Investor and did the road of becoming a realtor. It was amazing the amount of money you will have to spend in the beginning. School, Insurance, lock fees, MLS, etc... The school took me 75 hrs of class studying plus few more at home. Its intense... for 1-2 houses per year, i do not think it will make much sense. I ended up not renewing the license. One more thing... you will have to disclose to the seller you are a realtor that is acting for yourself. that could potentially give you less power of negotiation, depending on the offer you are willing to make...

thank you Jackie.  how did you had back to the title?  I though the Title company had cancelled the Lien, therefore you were out of the Title.   Congrats by the way...

I own a house.  After reaching agreement to several details with buyer, i need a good lawyer to help me top set up the contract and discuss details on responsibilities from now on.  Any good guy with experience in that?

@David M.

True. When i say move, do it in the right way. Do t expect house be in a LLC and insurance under your name, for example. Title and all needs to be addressed as well.

@John Akhlaghi

LLC are great to reduce your exposure. Depending on state it can be very expensive. So you need to check the cost to have one. I know some investors like to hold 1 house per LLC, personally i have 4/LLC. I also have umbrella, so risk is mitigated.

Having LLC, i have an account per vehicle. All payments are done using their accounts.

If you will buy a property and leverage, getting a finance, you will need to buy under your name and then, move to your LLC. Check with your lender this.

I move as soon as it is possible my properties to my LLCs. This way i reduce my risk, and can save some in insurance.

@Roee Hazut

I have to say o am a successful investor, that invest ALSO in RE, but different from many, out of State.

My background comes from finance. I decided to invest out of state due to opportunity i saw that drove my interest in the city.

First of all, i tried to pull as much info as i could in the city. To tell u, took me more than 1 year to “pull the trigger”.

1). The city had good prospects. A Large headquarter of a giant firm was moving closer. Also the standards of houses i decided to invest was far from the 50k’ s someone mentioned.

2). I took on consideration the yield the RE was giving me. The average in the area is important as it would mean my investment would not be 1 house lonely. To invest out of state in my view you need to have material enough ( investments) that will give you decent return ( cash), worthy of spending time.

3) after putting a decent amount of investments i gained some bargain power and was able to reduce important costs. That increased my return, and made me to have strong position to read the market ( i am perceived as a serious investor).

After 5 years, already collected more than 25% return ( i didnt leverage) that pays my bills. I had no issue i could not manage, and i am very happy.

So i dont agree with the statement tou should not. I am in a fase of starting to search my new target area. It will be another 6-12 months of study including a visit to the city.

If you want to invest in RE, i encourage you to do it, but as any other investment, do your homework and know what you are dealing with. Dont accept. Only others words as the truth as each one has a different risk profile. Find yours and acts accordingly.

You will need to have a team of your trust, so start slowly and find the right team.

Good luck