All Forum Posts by: Brian Faust

Do you know what the tenants portion of rent will be when they apply? Does the local housing authority make that information known to you, acceptable to ask potential renter what their voucher amount is?

Hi Jimmy, welcome to BP!

I may have a 2 unit building coming available in the new year, around the 1900 block of North Street.  A 1 bed unit and a 3 bed unit make up the home.

I'll be sure to reach out to you unless that area is of no interest to you. 

Mahan Shahverdi I have a couple REOs listed, process may vary in your state but in PA we; Created accounts/profiles in various REO platforms/systems (Equator, ResNet, Pyramid). The systems ask for broker information and a copy of your E&O Coverage (you’ll very likely need your brokers blessing for listing these properties as basic E&O coverage typically isn’t enough when handling/listing REOs). Once that is all verified your profile is available for bank asset managers to see and select for listing their properties. You’ll generally list zip codes of areas you’ll take on listings and once a property is available in a selected zip code of yours an asset manager may pick you to list the property they’ve been asked to manage. You’ll be ranked against other REO listing agents based on how timely (and accurately) you turn around and complete assigned tasks so it may take some time to get some “good” REOs. Be prepared to take on some real charmers initially. As a caveat, you are generally not allowed to bid on/purchase an REO you list and manage.

It looks like, within next 3 years, my family and I will make the move from PA to FL. FL doesn’t currently have a mutual agreement with PA as far as Realtors licensing goes, and I can’t get my GA license (PA & FL both recognize GA as a mutual state) to sort of circumvent going through the whole coursework and exams again in FL. I came across “Real” brokerage that advertises you have the ability to conduct business in multiple states as long as you have a valid license in one of the states they have a brokerage license (FL & PA are both on their list). Is anyone familiar with this brokerage or even hang their license with them that could give me more info? Perhaps someone has some advice as far as how I can transfer my license to FL from PA that I haven’t thought of or identified?

Agent should have the standard document, it’s a standardized state form for PA and is known as Price Escalation Clause that is attached to the Agreement of Sale (offer).

I’d Definitely go Conventional. A realtor in your area will be able to get you in touch with a broker that can shop the best rates and programs available for you. If able to put 20% down, you won’t need to worry about PMI. Another benefit to conventional financing is that it is usually the only method of financing accepted in a home being sold that is in need of a good amount of rehab work beyond cosmetics (aside from your 203k/Fannie Mae rehab loan program). Ask your friends family and coworkers for names of realtors in your area that they recommend and pick his/her brain, they’ll be a huge help. Good luck!

3/2 

1600 ft2 Detached Home on .10 acre lot

Home is currently setup as a duplex but the plan is to convert back to a single family home (a piece of painted foam board separates the upstairs stairwell from lower level so it won't be all that intense of a conversion).

There is hardwood (great shape) in every room with exception of kitchen and bathrooms. 

ARV is around $115K at current market (I just listed a home on Monday a block away from this home, it has already brought in 2 offers with a possible two additional offers to follow; all above asking price. Home is very outdated so I feel very confident an updated home in this area at similar square footage and lot size can command the $115K ARV price even though I built my entire budget around a $105K ARV).

Acquisition price ~ $32-35K

Rehab cost ~ $29K

I have a scope of work completed, team assembled, and local bank financing to cover the rehab portion of this project.

I have most of my cash tied up in another project at current time and don't want to miss on this deal, but I'll have about 20K worth of "skin" in this potential deal.  

I'm looking for an additional $20K and offering 10% back on investment.

I have full PDF breakdown available of project, please reach out to me if interested or with any questions.

@Evan Breisch Let me dig in and get you some answers, I don't know the area very well at all in terms of investing.  I've recently had two buyers that were looking for move-in ready homes in Schuylkill county so my overall knowledge of the area isn't extensive.  I'm most familiar with Dauphin/Cumberland/Perry/Northumberland Counties.

I think you'll have bad renters in every area, screening is the name of the game and treating your rentals like the business they are is and will be imperative for you to have long term success!   

Thanks Kerry Baird for the reply! I just read up a bit on seller financing and certainly feel it's a possibility in my scenario. But how do you structure the offer/agreement of sale when it comes to seller financing? All of my offers need to go through my brokerage and I'm having a hard time comprehending how I'd write an offer on the standard agreement of sale form if I utilize this method. Thanks in advance!

Expired listing, had two parcels packaged together as one. One of the parcels is a small SFH, the other is a multi-unit.

Seller doesn't want to split them up, which is ok with me, I'd like them both anyway and I'd like to break down the multi to a large SFH with a nice lot as I think the return on the flip would be best for the area as compared to renting 3-4 units (average rent in area isn't very high and cash flow on this would be very tough to get to $100/door per month).

My predicament comes in the way of financing.  I'm just starting out as an investor, have around $30/40K in cash but that won't be enough to acquire both parcels.  

I managed to work with my local bank and they are will to extend a LOC or structure a financing plan similar to a 203K or Homestyle Investor loan program, without all the red tape. But my $30-40K in cash wouldn't be enough to cover the downpayment and closing costs on this project. (I'm looking at close to $200K in acquisition and rehab costs for both parcels).

Owners own properties free and clear, I know the husband enough to feel comfortable that he would be open to communicating a different strategy/method of buying both parcels either at different times or by some creative financing method.  But I'm unsure how to structure or what method might work best.

My first thought was to rehab the small SFH first, flip it, and then with the profits (and my original cash amount) I'd have enough to cover the large multi acquisition and rehab. I'd rather not go through two closings, if possible, though and I'd prefer to own both or at least equitable title to both straight away.

Any thoughts?