All Forum Posts by: Bob Foglia

I know BP is an investor platform… and I currently only dable (2 sfrs and a 3rd coming on soon). I’m a novice. 

I recently accepted a job in Phoenix. So I'm putting the investments on hold and looking at buying a primary residence for cash (and use delayed financing once I clear a few things off my balance sheet)… Since I'm looking at multiple options, what is the best way to make sure I'm protected? Should I hire an attorney? Or a realtor? Or is there another alternative to represent my side of a transaction? Since I am "shopping" remotely, and my timeframe is limited, the odds are good I'll find something suitable on the MLS. If that changes your recommendations.

Quote from @Stacy Raskin:

@Bob Foglia, are you asking if DSCR financing is the same as conventional rates or?

My bad, I didn’t word that very well, sorry. No, this would be a primary residence, not an investment property. So no DSCR. I was asking if delayed financing was priced similar to a conventional first mortgage, or a cash-out refi… more/less?  

Thanks for the replies… I appreciate the input.

Are the rates and fees comparable to conventional financing?

Relative newbie question here... I know if I wanted to refi my current mortgage (I don't it's 2.99%!), to pull cash out, that's obviously a cash-out refi... 

Is it considered the same if I were to buy a house for cash, and then wanted to get a 50 to 60% mortgage? It's not a refi, but it would be a cash-out transaction. Would that fall under the cash-out refi category? Or would it be considered a conventional first mortgage? And for clarification, it would be a primary residence, not an investment property.

Well, the deadbeat renters are out, but they trashed my house!!!  

I'm sure the damages are going to be more than $7,500... AND... they stopped paying rent. Since $7,500 is the maximum I can sue for in small claims court in Colorado, can I sue for the damages and then sue them again for unpaid rent/utilities? 

FYI, they have admitted in writing they owe the back rent.

I have a general strategy question and I’d love to hear from those of you with way more experience than myself…

I have a single-family rental I want to pull my equity out of… I had planned to 1031 into a better market with better cash flow…but, the question is, what are you all doing? Are you thinking there are good odds of a market correction?

Would you 1031 into a new property that may well lose even more value? Or pay the capital gains and wait a little while and hope for a market correction?

I realize the longer you hold your cash in an inflationary time the less it’s worth… And I also understand interest rates could go up and it sounds like they probably will… But if the market corrects, I’d be able to purchase more after the correction… maybe? I guess that really depends on the market, doesn’t it?

Or maybe I should split it? Buy one or two properties now and hold onto the rest of my cash for a bit?

Thoughts?

Good morning BP family,

I have an out of area single family rental that I am selling. The current tenants plan to purchase. I’ve discussed the process with a realtor who has offered to help facilitate the process. They’ve stopped by the home, been in contact with the tenants, and done a market analysis (BPO).

I’d like them to finish the sales process, contracts, etc. and I want to compensate them fairly… What should I expect to pay for that service?

The home is in the $300k range.

@Jourdan Amerson 

Was $4,800 what you paid for the training and mentorship? If they help you find a property, how much do they charge for that? Is there anything above the course fee? A percentage? What else can you tell me? Could you put me in touch with others who have gone through the program? 

@Avery Carl 

@John Underwood

@Paul Sandhu

It's funny, I typed this before I read all the way through to the last post, but that didn't change the questions... 

I want to play devil's advocate here but am happy to hear arguments to the contrary as I’m learning. 

I’m assuming the $4800 is an accurate figure for the program. So… Many have paid substantially more for college… Many have paid substantially more for trade school… both are vehicles to get an education to help land a job and make money. And yes there are many gurus out there who only make money for themselves...

And yes, purchasing short-term rentals doesn’t require any special licensure, so you could certainly learn “on the street“…But will you? And if you go that route, how long will it take you to acquire your first property? Yes, some will do it quickly but others will take years and others will never quite get around to it….Myself, I have a job that requires a lot of my time (which I paid substantially more for by the way) so how do I go about finding time for this education? What I’m saying basically is if it’s a legitimate program that will help walk you through purchasing & marketing properties and save time and steps (both of which are money), it might well be worth it… But the big “IF“ is... do they? To me, that’s the big question. I’d happily pay $4800 and purchase my first property in a few weeks to months rather than a few years, and do it without making rookie mistakes that also cost me money… that makes it’s worth it. But if it’s $4800 for some educational materials and no support, then definitely not worth it. Short-term rentals are something I’m interested in and looking into right now… If this expedites the process, it may well be worth it. I think we need to hear from someone who’s gone through the program… I see one purported example from about a month ago...  Are they now the proud owner of short-term rentals that they wouldn’t have acquired without the university’s help? Or were they left high and dry once the check cleared???

I have a lot more due diligence to do before I'd even consider jumping in... but I haven't heard anything that makes it sound like BS either.  Thoughts???

@Cody McVay,

@Jeffrey Donis:

thanks for the suggestion… It was my understanding that a syndication investment doesn’t meet the requirements for a 1031 exchange… Do you know if there are 1031 approved syndications?

It certainly is something to look into for my cash though.