All Forum Posts by: Anthony Davis

😎Congrats Dave👍👍

Kevin, ask for an extension of 10-30 days. Next, ask a local realtor to send you a list of all the cash buyers in the area of the property who have paid cash for a property in the last 30-90 days. Send those investors an introductory letter, and mention the property that you have under contract. Also, enter the street name in the county tax bill lookup area; then scroll through for ownership with company names. These names may be potential resources/buyers for you. May Your Efforts Be Rewarded.

Welcome to Bigger Pockets Melissa! This is a great place to network and learn! May your efforts be rewarded!

Take notes on your tour. Most people do not have a photographic memory. Take a high-beam flashlight if you have one. My iPad died on my first attempt, so this is a shorten version.

EXTERIOR: Look along the roof line for weaknesses_rot, mildew, mold, small holes which could mean termite damage. Look over roof for patched work, discoloration, 'sink' areas, etc. Exterior walls: if wood, look for same as roof area. Foundation: Check for cracks in brick, mortar. Check for any slants_inward or outward along base of building.

INTERIOR: As you walk, notice any un-leveled areas of floors. Also, notice 'soft' spots as you walk. Use a high-beam flashlight to check under all sink areas & around toilets. You are looking for possible leaks, deterioration spots; mold, mildew, etc. Notice ceiling throughout property. If you are able to turn the water on in the sinks_do that. Flush any toilets, then wait to cycle is complete. (Tip: If you have small talk while on your tour, the time will pass smoothly.) 

Some investors take a folder with the purchase contract in hand to be signed there on the spot. If you are very new to investing, you may not know about exit clauses_and should not negotiate price; negotiate price on tour, etc. Leave, review notes, make a follow-up call after your analysis. You will be find. Take deep breaths. Talk slowly and clearly as if you were visiting a historic museum. Tell yourself in the mirror that you will do fine. Congrats!

 No, although that would be an option available to you, that is not what I meant. As with most business decisions, critical thinking skills are needed in order to scale upward. Your property could propel you in a nice position with your current mortgagor for new loan products, or credit lines for your future investment ideas is what I meant. 

Investors could have different methods to accomplish the same goal. I firmly believe an investor's strategy should include leveraging other peoples' money to complete deals. If you were to decide to refinance to get more cash out and buy another property in Charlotte, you would definitely need a good exit strategy in place for the new property. 

Of course, refinancing to cash out will have some known variables, and some unknown variables. Your credit strength, and financial strength will decide if a refinance will be more burdensome for you. I am unable to determine that answer for you. I can only say that 'over  a timeframe' that you choose before refinancing, a good loan product with a reduced interest rate from your current interest rate, could leave you in the exact condition; or even better condition than you are currently, in especially if you include any money above your mortgage payments that you may receive in rental payments. Think through your decisions.

 Ultimately, you will need to factor in your current expenses for the Simsbury property, then consider property management costs; and allow maybe $75.00 for ongoing maintenance costs (as a buffer). Creative minds find a way. You will need to consider your current financial capabilities. Are you just getting by with monthly expenses? If so, the Simsbury property, along with tenant requests/concerns could become a big stressor for you and your property manager. Are you renting, or buying in Charlotte, North Carolina? If renting, I would suggest keeping the Simsbury property, and letting tenants pay your mortgage down. 

Tip: If you are a real estate investor, because of your move to Charlotte, and not by personal interest in real estate investing as a career; then consult with a real estate professional to see what the Simsbury property needs to have to maximize the rent in that particular area. 

Based on your information, your property has some equity, although very little. If you are very capable, continue to build your equity, and long-term relationship with your mortgager. Over time, your good standing with your mortgage company, and the equity in your home will easily propel you into a good position for additional real estate investments. North Carolina could be a great state to invest in properties.

You decide if you are willing to put in the effort. 

 Yes, you can; however, both wholesalers & cash buyers will utilize bandit signs. We are all looking to profit, so you may want to call the numbers to filter the cash buyers. If you have enough built-in profit, you may be able to pay a referral fee to another wholesaler ( if the wholesaler brings a cash buyer that closes the transaction.)

(I assumed you were referring to the small signs on the ground when you mentioned bill boards.) Any real estate sign with a number could be a valuable contact opportunity. Networking is key in any business, or pursuit. May your efforts be rewarded! Anthony

 Why guess that, with just a simple question_without details. The question seems hypothetical to me. Perspectives are interesting.

 Welcome to bigger pockets & Charlotte, North Carolina!

 Hi James,

I'm not an attorney; and my suggestions here are not legal advice.

After you have the purchase contract signed with the seller(s), you will have some rights concerning the subject property. Before you have a purchase contract signed with the seller(s), be careful of how you represent yourself to other parties. Your actions could be outside the law if you plan to talk to others on behalf of the seller(s), or the subject property. In addition, the seller(s) will have to sign a 'release of mortgage information' document, so that it can be sent to the mortgagor. Without it, it is unlikely that you will be successful when attempting to communicate with the mortgagor.

Wholesalers can utilize transactional funding to simplify the parties involved before the end-buyer closes the transaction on the tail end of the deal. Transactional funding can be used if you do not want to lose the subject property, because an end-buyer is unable to close the deal by a certain date. The wholesaler would secure funding to buy the subject property, so that the end-buyer could purchase from the wholesaler in the near future. Extended transactional funding will occur 'holding costs' before the second close. You may want to do your own research outside this platform. Acquisition strategies will be based on the investor, the seller(s), the property, and sometimes, the lender. 

I am not aware of the wholesale contract that you are referring. A general acceptance with the seller(s) via a signed purchased contract, offer to purchase, purchase and sale, etc will suffice. A real estate attorney can let you know if wholesaling is an option in the state of the subject property. Additional phrases need to be added into the contract to provide an exit strategy for you. You may want to do some research outside of this platform. I hope I have said something to help you.