All Forum Posts by: Ben Feder

I have a property I can get under contract at a good discount for a fixer upper, primarily cosmetic upgrades should be needed, some basic plumbing. The seller is very motivated after having inherited the property from a relative who has passed. The person selling is my mother, and I tried to push her to get to sell at a higher price/fix it up to sell it for more, but she is insisting that she sells as quick as possible, before property taxes are due. She knows I want to invest and okay if I purchase at a low price. So far she has an offer from somebody at about $183,000, so I would like to come in at $185,000 purchase price.

I am looking for a partner who can put in the full $185,000 purchase price plus repairs. I don't know all the repairs that are needed, but at least the carpets and paint is old, and the upstairs bathroom might not work. The frame of the house and most electrical/plumbing, etc. should be fine, but again, I haven't done an inspection yet. Based on rough estimates, the house should be worth over $300,000 ARV, potentially over $330,000. We can do a flip, but if possible, it would be nice to rent out the property.

We can do a 50/50 split in the profits/equity/cashflow.

Contact me ASAP so we can get this great deal from my mom, who says I have less than a month to put something together or she'll sell to the person who already has an offer on the property.

When you go to use the BRRRR strategy, you buy the property, rehab it, rent it, and Refinance it... what exactly are you doing when you refinance the property? I think you are pulling money out of the deal somehow, but what money are you extracting from the property? Is it the downpayment that you made? What's going on?

Are you able to, legally and ethically, rent out individual rooms in a Single Family Residential house to people? I don't see why not but have heard somewhere that you can't. I don't mean friends or family who all move in together and take separate rooms, who are all part of the same lease. I mean a separate lease for each person, so that you can rent out individual rooms as opposed to having to rent out the whole house at once. If possible, this could lead to the ability to house-hack a SFR where you live in one of the rooms and rent out each of the other bedrooms to different people, and the common areas are shared (kitchen, family room, etc.).

One of the best ways to find good deals is to find motivated sellers or distressed properties. Where would somebody find a list of these people, such as divorced people, people who inherited a property/property going through probate, vacant properties, properties going through foreclosure/about to go in foreclosure (pre-foreclosure), etc.?

 Are you saying that months of research on a single market to determine whether it's a good place to invest or not isn't extensive because "extensive research" would take longer, or because it shouldn't take that many months to figure out the market?

When searching for properties, sending out direct mailers can be one way to bring in leads which can leads to deals, especially if you want to look for off-market deals. What do you say in a direct mailer that you are sending out, and which houses (who) do you send the direct mailers to? How do you find which properties to send direct mailers to, or if a house is vacant, how do you find out who to send the direct mailer to?

I know this is a couple of different questions, but they are related, and I am curious what the answers to the questions are. Any help is appreciated.

@Scott Mac thanks! Since this is what only some of attorneys will do, what will most of them be doing?

@Aaron K.

Thank, I hope it will come to me while online shopping and going to open houses, etc. How do you get a feel for this just by internet shopping or even touring houses? When you drive around or shop online, either way you are only looking at specific houses, which may or may not be reflective of the neighborhood they are in. Also, you would need to know how these neighborhoods are layed out and which other neighborhoods are nearby, and what class of neighborhoods you are lookng at.

When investing in real estate, you're supposed to know your market, what all the nieghborhoods are like, where to invest and where not to invest, etc. How do you get to know a market like this without extensive research that can take months by literally finding out what all the neighborhoods are, exploring all of them, talking to people in all the neighborhoods, etc.? Is finding a good agent who knows the nuances of the market enough, or do you need more information before investing in a particular market? If you need more info, then what information do you need and how do you get that information?

When going through the REI process and also when managing tenants, in what way do you pay your attorneys? Is there a way to pay by the job, or is it by the hour, or is there some other form of transaction method for payment? What payment method should you go when using an attorney?