All Forum Posts by: Chris M.

@Steve Frye Thanks so much for the comment.  It's crucial to find the balance between selling myself and actually doing myself a solid. This isn't the short term home run setup, but it sure has potential to be a long term gem. 

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Have located two owners of a large complex who are willing to sell one unit each.  Townhouses are newer 2500 sqft each 3/3.  Combining both units into one loan, if possible.  Taking out HELOC on my personal home to pay 15% of the 20% down pmt.  Short term in not lucrative, but this is a long term buy/hold.  Two blocks from main part of town.  If this city continues on the climb (just outside of Nashville) skys the limit for appreciation. They're breaking ground on a massive convention center next year, which is located within a couple blocks from units. 

If you think you're an ace at sending direct mail to motivated sellers, or any target for that matter?  Learn from my mistake.. Proof Read Everything!!!

I've done a few mail campaigns to motivated sellers. Made sure to cover all bases. Created an LLC through a registered agent. Opened a PO box. Mined targets, etc.

Sent over 2000 letters through 3 or 4 jobs in the past two months using C2M.

Got a call from a seller with over a hundred acres in a prime location he wants to sell for 2.5 million.  Very interesting, except that's a bit too big of a bite for this baby shark.  During our conversation, he said "So you're over there on xx street?  So and so is your neighbor?"  Oh, yeah I said.. they are real nice...Wait a minute...!!! How do you know my address?  

Turns out, on my last production with C2M, the return address was swapped from that of my LLC to my personal name and address. I can only assume it was done during the billing process. Now we've got over a thousand letters floating around indicating our capacity to pay cash for property and exactly where we live. IDIOT!!

Lesson of the story... Always Always Always proof read and proof read and proof read before you click send. 

Anyone else care to share their lessons? 

@Carly Radzimanowski Very impressive write up. I sure hope that wasn't your fist investment in the area? If so, then I'm in awe of your tenacity to plunge in like that. We have a bit of vacant land and one SFH which just got filled last week. I would love to know who your broker is, considering they own a construction company. My wife and I considered obtaining a license, but have zero interest is being a buyers agent. Would simply need a place to hang. Having the same folks as a managing broker and GC seems like a very lucrative opportunity for both sides.

@Carly 

@Carly Radzimanowski Living in Clarksville TN, I find it very difficult to find great opportunities like this.  I'd love to hear your numbers on this unit. Nearly bought a home similar a few months ago on the same street. 

In my area of TN, the market is HOT. Our experience in REI is limited with one rental and some vacant land. Looking to expand, here's what I'm thinking.... My Grandmother has a trailer (30 yrs old) on a lot, in a subdivision, that is slowly transforming into a SFH neighborhood. Eventually she will be made an offer by and investor or builder to sell her ~1/2 lot.

I'm looking at a condo today in consideration of purchase for my Grandmother to reside; likely for the rest of her days.  I will purchase the home and charge her half rent in return for deeding her lot over to me.  The lot may have a value of 15k, so it's not like she's sitting on a golden egg. 

Here's where my rabbit hole of a thought process comes into play. The condo is listed at 190k and was already appraised for 200k. We have an LLC for our current and long term buy and holds. As mentioned, we have one recently acquired rental and some vacant land bought with cash. Can I use the entity and apply for an FHA loan? Personally, we have great credit and own a home with a conventional mortgage. So, naturally, I'd be a personal guarantor on the FHA loan for the property in which my grandmother will live. Thankfully, it's a three bedroom condo, so one of the rooms will serve as an office for the LLC to conduct business; satisfying the owner occupancy aspect.

I'm not finished.... As mentioned, the market is hot here.  That is not stopping me from seeking a great deal.  In my offer, we're considering a sale price of $145k plus... we will pay 5% toward whatever escrow wants to use in their verbiage (basically commissions).  My train of thought is that the seller might be willing to accept the lower sale price since I'm willing to pay their commission fees. 

Can we use a conventional mortgage and pay 20% down vs the 3%? Yes, but we'd also like to keep those funds liquid. Since we are purchasing the home below 80%, would we be able to purchase without PMI, despite using FHA?

So much to process and consider.... Which is why I'm here. Please feel free to poke holes in my thought process or provide additional ideas. For example, I know technically, you're supposed to have 2 years of experience with the LLC to qualify for an FHA loan. But, there are also lots of things that an 800 guarantor with substantial W2 income might be able to overcome. Am I wrong?

TIA, 

Chris 

@Filipe Pereira ... The more you know.... Exactly what I needed. TY!!

@Monica Johnson I too list on Cozy.  I bet you could visit the QRstuff.com website and create a qr code which directs to your listings page. Then, have that placed on your business cards. I did this once, years ago, in the car biz. 

@Corey Rippeto I'm with Patricia on this one. Definitely check with your insurance provider. I have two properties both in the 1% 100 year zone.  While the property may be a steal, if you finance it, you'll certainly be required to secure insurance for at least the amount of the loan.  In my area, found a $70k house that was going to cost $4k per year for flood insurance. That's an additional $333 monthly expense.  Needless to say, we paid cash.  Had the chance to buy 2 acres zoned for multifamily in a perfect part of town. Decided to pass because we would have to finance the project of a complex; meaning we would need flood ins.

@Aaron K. Thanks so much for your reply, but please advise.  The home is owned by a huge and respected GC in town and was completely remodeled 2 years ago.  While the future may hold slightly higher capex and repairs, it is to be expected, percentages will remain lower for the short term.  Furthermore, annual tax bill based on the tax record is $198.