All Forum Posts by: James Sigsbee

@Jamie Kern I was on the phone with two reps from Pen Fed yesterday. I was told they would not do a HELOC on a property in an LLC and was also told they would not do HELOCs for anyone owning four or more properties. I was very disappointed, their 5/5 equity line at 4.75% would have been great for me.

Crystal,

I am a state certified appraiser (Georgia) and own rental property. I do more commercial than residential appraising, but have been in the business for 11 years. In my opinion, being an appraiser is helpful (it can't hurt!), but I don't think it is something I would recommend doing just for REI purposes.

In my opinion, knowledge of a particular niche/market and working with the right people is far more important than any concepts you will pick up as an appraiser. Although appraisers play a role in the process, prices are generally set by buyers/sellers (and their agents), not appraisers. Plus, although it is not that expensive or time consuming, you will have to keep up with continuing education and licensing fees every year to keep an appraisal license. That is time and money directly taken away from REI.

@Curt Smith

Thanks for all the discussions you have contributed to regarding seller financing here on BP.  You and I have a similar thought process on creating cash flow through a combination of rentals and notes.  I am also in Georgia and was wondering if you elected to move forward using RMLOs despite the cost.  I'm an investor in SFRs with a higher price point, so the $1999 SFC price is not quite as bad for me.  But, that is a steep cost of doing business  and I would love some quality alternatives if you or anyone else have any recommendations here in Georgia.  

Thank you @Shera Gregory!  The link you provided was very helpful.  While I don't have immediate plans to sell the note, that is a great point about the potential marketability of the note if I change my mind later (i.e - a better opportunity for the capital comes up).   Best of luck to you!

James

Does anyone else have any experience or good advice in this area?  I am also looking at doing seller financing and obviously want to make sure the property is properly insured and has the taxes paid.  I am a licensed, so I don't think I can use the same approach Bryan used.  Any thoughts or advice appreciated!  

Good afternoon Chris,

Are you looking for something like a quad, or a larger apartment complex?  If you are looking at larger properties, I think you are already seeing the story correctly with limited inventory and a lot of institutional money in the market now.  Cap rates have been driven way down and certain local markets (most notably around KSU) have gotten very hot.   I don't see much in the local market (I live in Marietta) to get excited about either.

James