All Forum Posts by: Brad Henson

Hi All,

Looking at a multifamily building deal currently that I'd plan to exit in a few years via a condo conversion. The property is in Michigan. Anyone have experience doing these? What should I be considering at this stage (LOI submitted to seller)?

thanks!

Change lenders. Lenders need to send in their own appraiser. You'll need to pay to have it appraised again, but that could save you money out of pocket should it appraise where you think it should

Hi All - after 4 properties under contract, it's looking very promising that my fifth will finally close, and be my first property! The closing date is early December (subject to change during renegotiation). There are a few outstanding items I need to complete, and I'm wondering when I should do so:

1) Set up LLC to house the property - I've read this needs to be done before closing (?)

2) Set up a business checking account specifically for the property

3) Choose property manager (have been vetting/interviewing 3 different ones already)

4) Meet with current tenants, if necessary? Rents will be raised nearly 40%, and even that is below current market rents. The tenants want to stay and have all been there for years. They're aware the rents will be going up.

Hi All,

I was under contract for my first property, but it ended up not appraising, so we backed out. This property was located in Michigan (I'm in CA). I spent $525 on the inspector. In addition, I spent $400 on a flight, before the deal fell through, to be in Michigan on the closing date, which ultimately never happened. I still went on the trip to meet with my broker and tour other properties / make another offer ('Business-related' days accounted for 4 of the 6 day trip). Note, I don't have an LLC and was/will buy my first property under my name.

When it comes to taxes this year, what can I deduct from this experience?

Thanks!
Brad

Ahh, once again, I'm out of town for this one

See you guys at the July event!

Hi All,

I'm in the final stages of closing on my first investment property, a tri-plex in the midwest. I want this deal to work given the dynamics of it. However, things have gone awry the past few days:

The MLS listing states the property is a "non-conforming legal triplex." However, the the appraisal came back $35k lower (~15%) than purchase price. This is because the appraiser found the property is not, in fact, a legally conforming triplex, but instead a single family. The seller, who is also the listing agent, didn't fill out the paperwork to grandfather in the triplex, and it's highly unlikely he'll be able to do so.

Due to the above, the deal is likely to die as the seller is unwilling to drop the price given the appraisal.

Since the seller falsified the listing, can I have him repay the money I spent on inspection / appraisal? I've asked my lender and he said I would easily win in small claims court as the seller (the agent) misrepresented the MLS listing.

Thanks!

Hi all,

I'm looking for MFH in the Fresno area. I've spoken to a broker and have been approved for financing. Looking for something in the 2-300k range. I'm based in San Francisco but would love to hear some local's point of views / review current opptys.

Thanks!
Brad

A bit far out there, but you can mitigate your real estate risk in a commodity market-dependent area by hedging with futures, specifically WTI for Houston

@Chris Mason This is really helpful.

For an investment property, I assume the correct chart to look at in the FNMA doc is the first?

Cheers!

Brad

This will be my first BP event - looking forward to meeting everyone!