All Forum Posts by: Amil D.

@Samuel Iwu Your total return is higher if you leverage bc of loan paydown. So you might as well leverage in the beginning. Now let's say you have been doing that for a while and you are nearing retirement. And the amount of money that you will make from now until retirement is reaching the point to being almost equal to your debt.

At that point, stop leveraging and start paying off all the properties with snowball method.

Basically calculate ahead of time how many properties you need to buy in cash to retire early but do not buy them in cash yet. Pay them off later leverage 1st

That is the optimal way to do it if you want to retire as early as possible but also maximize your Return with as few properties as possible.

The optimal way to maximize returns is to buy everything with leverage and let your tenants pay off your entire loan but You'll have to buy a lot more properties doing that because the cash flow of each property will be lower.

1 Vote

Originally posted by @David Ripplinger:

I'm new here on Bigger Pockets and to real estate investing. This question may just as well apply to any other hot market, but currently Indianapolis is the one I've been looking at.

I've been noticing that there are many seemingly great options for real estate agents, contractors, property managers, and lenders in the area. So many of them seem to have plenty of experience working with investors and not just retail buyers. Several even make things more streamlined by offering multiple services under the same company (e.g. some offer both rehab work and property management, some offer realtor/finding work and property management).

What concerns me is that it seems like pretty much all the good teams out there are also investors themselves. Moreover, I've noticed in the forums many people happy to share who their team is with others investing in the same area. Do these things not present conflicts of interest and undesired competition? I imagine if I had a real estate agent that also invested like I hope to, that person would save the best deals for themselves. Or, if I asked my property manager what he/she thought of a deal and they are also hunting for deals, they might want to snatch it up for themselves. And if I had a good team set up and someone else starts investing in the area, and I tell them who my team is, this new person now has a chance at hearing about deals from the same people.

So, my question is two-fold:
1. Is having a team that also invests a significant problem? If so, how do people mitigate or avoid it?
2. Why are investors in the forums eager to share with other investors in the same area who their team is?

David,

Regarding real estate agents - Just do all the proper screening. Check out
https://www.biggerpockets.com/blog/2016-02-04-investors-guide-hiring-real-estate-agent

Amil

1 Vote

@Casey Sbrana they said the same thing in 2011. But I bet he would have regretted not buying back then.

Market timing is impossible

2 Votes

@David Ripplinger I don't think a decent property manager would steal the deal from you. Reputation is eeverything in this game. Plus that would mean you would not work with them when you do get a deal. But I do think you're right that an agent who's also looking for deals will just give you stuff that they passed on.

Just don't depend too much on the MLS. I'm not saying deals are impossible to find on the MLS but most of the good deals are gone before they hit the MLS.

I'm just a rookie in this game but that's my opinion

2 Votes

Originally posted by @Davido Davido:

@Wayne Brooks, Yes, it is not standard practice to notarize a Purchase and Sale Agreement, mostly because Purchase Agreements are seldom recorded with the county. However, a signature can be notarized on any document. In this instance "verify(ing) the person who signed it", is precisely what I would be trying to accomplish. Verifying the signer also appears to be a concern for investors like @Charlie MacPherson, who wrote, "How do you know that the person he says is the seller actually owns the property?" It is easy enough to verify who the owner of record is, but how does Amil know that the person who signed the Purchase and Sale Agreement in the name of the owner, was the owner.

Amil's lead Question was, "How do I know if a P&S agreement is legitimate. It's legitimate if it is within the law, and the true owner of the property signed it of his/her own free will (not coerced). Of course talking directly to the property owner could be a fine way to verify that he/she freely signed the Purchase and Sale agreement. When it is not possible to talk to the legal owner of the property, a notarized Purchase and Sale agreement will verify that the person claiming to be the owner of record, at least presented identification documents at the time of signing.

Thanks for your input. Always appreciated.

@Amil D., You could certainly post a scan or photo(s) of the Purchase and Sale agreement that is being assigned to you. You'd want to black out certain personally identifying details like the property owner and the assignor's names and maybe the address of the property. By posting the agreement you could get answers to questions like, "Is there anything missing from it that should be there for my protection?" and, "Is there anything in it that could harm me?"

Thanks Davido, I'll message it to you!

0 Votes

@Charlie MacPherson The wholesaler says I can back out within 10 days if I find any unexpected issues per the inspection contingency. I have not paid anything to the wholesaler yet nor has the wholesaler asked for payment. The agreement that I signed states that I would pay though.

Is it too much trouble for you to check out the agreement and see if there are any red flags? I could send it to you. I will have an attorney review it also if you still think its necessary.

0 Votes

How do I know if a P&S agreement is legitimate? I'm about to sign one from a wholesaler. It transfers the rights from him to me.

Is there anything missing from it that should be there for my protection?

Is there anything in it that could harm me?

Let me know if you're willing to take a look!

For example the inspection contingency just says "contingent upon inspection." That seems a little too vague.

0 Votes

@Ric Ernst any chance you could send me your PM info as well?

0 Votes

@Jaron Walling really? Hmmm....Thanks for letting me know!

Right now I'm at the point where I don't really know the market very well so I want to pick some B areas and C areas and learn their price point, tenant profile, etc....

Are there any good investor neighborhoods that you would recommend I start with? Maybe 1-2 B class areas and 1-2 C class areas?

1 Vote

Indianapolis, Indiana

All Forum Posts by: Amil D.

Amil D. has started 10 posts and replied 42 times.

Post: Property Manager - Boston / North Shore

Post: Buying Real Estate with Cash. The safe snowball effect

Post: Indianapolis teams with conflicts of interest?

Post: How to talk about a possible recession?

Post: Indianapolis teams with conflicts of interest?

Post: P&S agreement: Am I signing my life away?

Post: P&S agreement: Am I signing my life away?

Post: P&S agreement: Am I signing my life away?

Post: Class C Property Management Companies

Post: City Plans and Development