All Forum Posts by: Andrew McGibbon

I find it best to present 2 or 3 different options to the seller.  I make the one I want the most, the most attractive for what they're looking for.  Its important to find out whats important to them.  Do they want a short term REC?  Would they prefer long term, etc...?  Theres a lot of questions to ask to find out what they want out of it and if you give them that, you can usually get what you want out of it(i.e. no money down)

Its unlikely you're going to get it for no money in simply because it will cost money to close the transaction through a title company.  You still need to be prepared to at least pay for those items.  $2,000-$3,000 likely.(Assuming no realtors are involved)  If you are wanting the low money down approach, offer to pay good money for the property with lets say a 6% interest rate.  Also offer another scenario where you put 5% down but only pay the seller 4.5% interest or something.  Again, make the version you want most attractive to them so you get what you want(which is zero down).  Good luck!

With 5 million homes in forbearance, I think its too early to tell. If banks foreclose on these people we could see a lot of REO's in 2021-2022. However, Im guessing the banks will want to avoid another 2008 and will likely work with these homeowners with or without government interference. Its up in the air, but I think its unlikely to be what we saw 10 years ago.

Insurance seems really high, at least for what Im used to.  But seems like a decent buy if the place is in good shape.  Is that a picture of the actual unit?  It seems like a pretty decent deal once you refinance it.  But that is all dependent on where it is and what else there is in the area.  But for most of the country, that would be considered a pretty good long term investment.

@Domenick Booker-Pomata Mountain America Credit Union based out of UT is the best lender I've found.  Right now they are under 4% rate and only 15% down on multifamily.  Crazy!  I do not self manage.

That is the same I run my numbers at. 10 and 10. 

@Chase Swanson that is where I currently am investing.  It is a rough area.  Quite rough, but the cash flow returns are the best there if you can deal with everything else.  So far, I haven't had a ton of bad experiences yet but getting yourself a good property manager and getting decent tenants will be the key.

Depends on your goals. If you need cash in order to buy more properties, selling it and using that money to buy the next deal isn't a bad idea. However, you will always build more wealth in the long run by never selling anything(within reason). Me personally? I would wait a few more months and refinance it once you've been in it 6 months(thats Fannie Mae's guidline). You'll be able to refinance at 75% loan to value easily. This refinance would let you pull out $165k which is exactly what you have into it. This will pay back your hard money loan in full and you'll own a 220k home with a 165k loan that cash flows and I recommend doing that over and over again as many times as you can stand moving. Good job on your first BRRRR! Sounds like you're going to do well no matter what you do. But I wouldn't sell it. I'd take the few hundred dollars a month in cash flow and move onto the next.

@Chase Swanson Im an agent here in Albuquerque as well as investor myself so I can help you a bit with some advice. With $40k, you can basically get a single family for roughly $200k or a multifamily up to $160k.  A home isn't going to cash flow a lot but should appreciate slowly but surely.  We dont have crazy appreciation here.  There is a fourplex on Dallas street that is only 130k and it appears to be under current rents.  Should be able to do minor work and raise rents and really get the cash flow going.  Its not going to be huge in the appreciation department, but its numbers should cash flow quite well.  Have you seen that one?  It sounds like you already have an agent helping you, have they sent you that one?

@Mike Cumbie that is a great thought.  There is only 1 fourplex near mine and nothing else around it.  I wonder if one of those tenants has an unsecured network or if I could convince one of them for $20 to let me on their wifi for a month.  Great idea!  I'll look into that!

@Bjorn Ahlblad that sounds like something that could work well.  Do they offer non monitoring or monthly billing?  Since my rehab's will only take a few weeks, I don't want long contracts or anything.  Their site just wants me to contact a sales person.  Doesn't give me a lot of specific info.  Thanks for the recommendation.

@Mike Cumbie I really want to catch something in action, not just have proof that it happened.  I appreciate the help!