All Forum Posts by: Bill Ung

Seems like there's good advice here! Especially on the side of tenants being more careful when they pay bills themselves. Consider maybe a hybrid of tenants paying electricity / water and you cover stuff like landscaping (because you can ensure your property looks clean and well kept). 

Good luck!

My goal by the end of this year will be $500 in Passive income! 

I am currently at the starting line but steadily building momentum from learning dail

I was looking at this property that seemed like a good deal but I found it is a nonconforming property that’s listed as a duplex but actually has 3 units (a front, a rear and one detached garage that has been converted).

It has been on market for over 100 days so I know there is probably something wrong with it, so my two questions are: 

#1 How much would it cost for repairs on non conforming units? 

#2 Why does it affect the value of the property so much?

#3 What are the hidden expenses that come with non conforming units

#4 What are the legal implications of it?

For reference, here is the description:

“Three non-conforming units (front: 4 bdrms, 2 bths; converted detached garage: 1+1; rear: 3+1). The rear unit and the garage conversion do not appear in the tax assessor's sqft of 932 but have been in existence for an extended period of time. Stable tenants now on month-to-month. Tenants pay for all utilities. Optimal 5.22% cap rate, 15.50 gross multiplier. Property to be sold "as is" in its present condition, with no guarantee and retrofitting, subject to buyers' inspections. Interior inspection only after acceptance of fully-“documented offer, with current proof of funds, FICO scores, and prequalification”

Thanks to all who contribute :)

I started learning "all there is" to learn on real estate seriously one month ago. I figured that it was time to start niching down and or even choose a goal, but I had a call with a distant family member of mine who is like a mentor now and he really showed me that I am way way way too early on in the process to already have a choice. Now it my time to learn...

And I do agree with that. I want to avoid "Shiny Object Syndrome" while taking meaningful action and that led me to a false belief  that I had to be buying properties already or I would never be a successful real estate investor. Might I mention I am 18 and still in college. I have a tendency at times to get ahead of myself but I do want to strike a balance with being realistic. 

I get that this isn't a typical nor straight forward discussion nor question, but I would like to open up my mind for how long the "only education phase" can still be. How can I make meaningful relationships without having to niche down? How can I keep being actionable while making sure that I am being realistic?

Again, I don't expect a clear answer and I don't know how to exactly express all of these contradictory thoughts, but I would welcome any experiences or stories of how you just knew the right time was to jump into a niche.

Thanks for reading :)

Hey Jeremy, sounds like a great deal in my eyes as well. Are you doing two separate FHA loans for you and your girlfriend? There's potential for lower rates on stuff like rehabs and services as well cause you'll have it in bulk.

If the price has dropped so much, have you also looked at comps to see the prices of those? 

I hope you two make the most of it!

Frank, thanks for that small tip to indicate seriousness. I haven't done my first deal however if I have an equity partner on board, what would be the best way to communicate that without going to the point of me holding onto their bank statements? Would showing a pre-approval of my equity partner be the way to go? 

Thanks for these questions. I haven't done any sales in the area, but I have been doing all of my homework. That could be a sticking point that'll be resolved soon :)

Got you Engelo, didn’t think of doing my due diligence like that first! I will be adding that to my toolbelt. 

Thanks mate!

Thanks Russell, that’s been at the forefront of my mind too! I’m trying to make it a win win.

Is there a question you like to ask potential Investor partners? Something that gives you a good grip on if this person is a long term and great fit for you?

All the best.

I recently got in touch with my first agent to interview and I asked these questions, they seemed to be enthusiastic about working together, but the next day they called it off and were afraid to hop into details when I started asking more questions specifically about the market we're working in. Was there something I missed out on asking? How could I improve my communication with agents moving forward so that I can create that win win situation?

Questions:

1. Do you run your own team?
2. How many properties do you currently own?
3. How did you find them for yourself?
4. How many transactions have you done the past 2 years?
5. How many on behalf of investors?
6. What kind of support would I be receiving from you (and your team)?
7. How do you plan on finding potential properties? What is the system or pipeline of deals we can create? (REO, MLS, Networking?)

Also, I am considering adding something like this near closing (I got it from the BP Podcast episode with Engelo Rumora). Has anyone used it or would have insight in how it would work out in my relationships with new agents?