All Forum Posts by: Andrew Merritt

Thanks Wade, I completely understand.  I don't have expectations of a get rich quick scheme or anything like that.  I only have enough for about 20% down on this first house, so I probably won't be able to get another for a while (unless I get equity out of my personal house, but then that would only be about one more home).

Just wondering if I need to change my strategy or if I should just keep chugging along.

I'm working on finding a rental property as my first deal.  For right now, I'm focusing on pretty much turn-key properties.  If I stick with this and spend all of my money allocated for real estate on this first property, how would I go about getting my next property (and more after that)?  If I was to get a loan for 80-90% of the equity in the house, I'd quickly reach the point of diminishing returns and I might have a 'seasoning period' to take into account as well.  It seems like this isn't the best way to build a portfolio.  Or it would just take forever to save up enough to buy the next house each time (depending on my savings rate, of course).  

I have no experience w/ renovations, but I feel like BRRRR is the only way to build a portfolio in a reasonable amount of time.

I found a property I'm interested in buying in Clemson, SC.  Does anybody know of a good agent to deal with there?  Will also be needing a property manager, so recommendations for that would be appreciated too.  Thanks a lot

@David D Painter and @Jose Hooker thanks for the replies.  This is my understanding of wholesaling

@John Thedford this is one of the things I'm worried about, but I just don't see it as them doing anything illegal. It would just be like doing a FSBO w/out an agent, no? I'm obviously not a lawyer but was reading up on the iffy legal status of wholesaling on an older thread.

Link to thread

Is it OK/ethical to work with both a wholesaler and a real estate agent at the same time?  I've been working with a real estate agent for a little while trying to find my first deal and I recently got in touch with a wholesaler.  The wholesaler has asked me to sign a NCND (which I'm OK with), but it just made me pause and wonder if it's ethical or I'm stepping on anybody's toes.  I asked my real estate agent if she's OK with it and she doesn't even know what a wholesaler is.  

@Russ Scheider sorry to hear about your troubles w/ contractors.  This is exactly what I'm trying to avoid.  My parents got ripped off big time when renovating their house so I don't have a good impression of contractors right now.

@Robert Knowles thanks for the recommendation.  I'd like to get into flipping soon so hopefully I'll be able to use him.

Thanks for the recommendations guys. Unfortunately, or offer on the house got turned down for another offer but we're still looking for another one.

I'm close to buying my first investment property in the Charleston area (likely in Goose Creek).  Does anybody know of a good home inspector that I could use?  I'm not happy w/ the one I used for my primary residence so I'm looking around for a new one.

Also looking for a good general contractor for any updates/renovations that may be necessary.  I've heard horror stories of people dealing w/ the wrong contractor so I'd like to avoid that by using someone w/ a good reputation.  

Thanks for your help!

Hi all, I'm looking for some advice on my first deal.  Our neighbors were renting and they just moved out.  We contacted the owners and told them we're interested in the house as it would be very convenient to manage the property next door.  I just had a walk through with the owner and I'd appreciate your input on the possible deal.  Here are the stats:

Summerville, SC, 1790 sq ft, built in 2001, asking between $200-$220k (seems about right as Zillow says the price would be about $202k)

Has not been updated at all except for a new water heater.  Owner says it needs a new roof (had a big leak during a storm last fall) and will probably need new HVAC w/in 5 years.  

I've been looking for a property for the past couple of weeks and I figure we can comfortably afford a  20% down payment on a house worth $160k.  We could swing a $200k down payment, but only if the numbers were right.  It doesn't seem to me like this deal will work out for us.  Here are my estimates based on some online calculators:

Rent: $1,500

Mortgage (estimating conservatively at 4.75%): $835

Taxes: $400

Insurance: $120

Vacancy: $150

Incidentals: $200

Total: $1705

Also keep in mind that we'd need a new roof ($15k) so we'd likely have to take a loan out for that.  

Now, if we do the fixer upper formula (70% - repair costs), this could be a lot more doable but I really doubt the guy will go down to under $140k for the house.  

Thanks for the help!

I'm looking to purchase my first investment property soon and I'm currently getting pre-approved for a conventional mortgage.  Is it common to go to multiple lenders to get pre-approved?  I've already contacted two (my primary home is mortgaged through Quicken so I contacted them as well as another company) and I'm hesitant to contact more b/c I don't want my credit report to be pulled too many times.  Between the two companies that I've inquired with already, there's about a $100 difference in the monthly payment of mortgage, insurance, and taxes.