All Forum Posts by: Brook Decker

@Wayne Brooks I like that idea. #2 will be reaching out to me soon. I can be transparent and make sure we get things cleared now before an offer is made. Thanks

@Joe Norman That's great advice. If I reach out to Realtor #1 and tell him I am now working with his junior realtor, I worry that Realtor #1 may be upset and tell Realtor #2 not to work with me. I imagine Realtor #1 isn't losing business, in this case though.

@Dave K. Thanks for the response. That makes me feel better. I figured the same and, when I close on a deal, they wouldn't see it as a problem. I just wanted to make sure I am not coming across as anything negative, I'm new so I want to be as professional as I can. I don't want to burn bridges.

So I've been working with a realtor in the Southeast region for the past 2 months. For background, I'm a new investor but after discussing funding and future plans, he agreed to work with me. He is a senior realtor at a major firm. Initially, everything was fine and he said he would find me off-market deals. In our second conversation, he mentioned an off-market property which I reviewed and replied within a couple hours with my feedback and I asked for the financials. The realtor never responded. I called him a few days later and it went to voicemail. 2 weeks later, he sends me the marketing package with pro formas. I review the financials and within a few hours I ask for more information, including the current income and expenses. He does not respond to me for another month. In that time, I am calling him twice a week, no luck. He finally sends the financials, which are incomplete and states that the property is now on the market and he is already expecting offers. I ask if he has any more off-market deals and he says he has one and will send information soon. I am still waiting for a response, 2 weeks later. Needless to say, for one reason or another, I am not a priority to him. I am not mad, but I do realize that I need to find a realtor that will be timely.

I decided to move on to another agent. I go on Loopnet and I find someone. A few days ago, I reach out to him and he calls me within 30 minutes. We talk and he tells me about an off-market property in another market. He sends me all of the financials minutes after the call. I take a look at the marketing package and I notice he works with the first realtor I had been working with. The first realtor is a senior agent while the second realtor is new to real estate, he started a few months ago (and I assume he works under realtor #1). 

I feel a bit uneasy that they are working together and it's only a matter of time before the first realtor learns that I have moved on. I don't think I did anything wrong since the first realtor never responded to me. The second realtor is already mentioning a new off-market opportunity that he wants to send me if this first deal doesn't work out. He's been great and I want to keep working with him. 

Would this be a problem in the long run with the senior realtor learns that I am working with his junior realtor now? 

Note: I never signed anything saying I would be exclusive to one realtor.

@Account Closed Thanks for the response. I've been looking in Philadelphia, around the Temple area mostly. I've also just started looking into Delaware County. I have heard that Lancaster is a good area as well. I feel like my budget is enough to get me started with the first property. I'd love to hear what markets you are considering!

I'm looking to do my first deal using the BRRR strategy and eventually get larger properties over time. I've been working in the Philadelphia market and there seems to be limited options for my budget. I have $30k for a 15% down payment, so about $200k total for the purchase price. Most of the multi-family properties are priced at or above market value or they are shells that need full rehab.

I'm considering looking at other markets, anywhere in between NYC and Northern Virginia (where I am originally from). I wish I could start with a market that I am familiar with, but anything around the DC area is not within my budget. 

Are there any recommended markets for new investors? Does anyone have advice on how to find the right market for a first-time investor? 

@Chris Mason - Thanks for all the information. I did some research and it seems that for most triplexes, sales comp are heavily considered (and also sometimes the NOI). The books and podcasts that I've been listening to mentioned how multi-families and apartment complexes are valued based on their NOI so that was what I have been focusing on.

I am looking to purchase this property well below market value. It's been on the market for a while and the seller is motivated. Triplexes within a half mile radius are being sold for practically double. 

I don't have much experience with cash out refi. Would it be best to talk to a lender now to ask about their refi requirements? I'm not sure how hard it will be to refinance after 6-12 months. I hear it's easier to refinance versus finding the initial lending. Any advice?

@Mason Peacock Thanks for the advice! I wasn't talking about doubling their rent overnight. I have a few options to have the property empty by the time I buy it or wait until the lease ends and raise the rent to market value. I like the idea of moving it to a month-to-month to give them time. Unfortunately, I don't think they could afford much of a rent increase so they would be on their way out within a few months. Once I'm in the due diligence phase, I will be interviewing property management companies and working with the one with the most experience in this kind of situation. They should be able to inform me of the best strategy to raise rent, based on the area. 

Hello! I am a first-time poster but I've been reading BiggerPockets for a long time. I am working to purchase my first rental property and I need some advice to calm down my newbie fears.

The deal is a 3-unit, multi-family property that is walking distance from a very large university. The surrounding properties are filled with both families and students. Each unit is 3 bedrooms, 1 bath. The property was renovated 8 years ago and is in great shape (of course, the structural stuff will be confirmed during the due diligence phase). Very little cosmetic work needs to be done, the kitchens are updated, the floors are done, there is even new wiring, plumbing, roof, and windows. The current owner owns several properties in the area and wants to move on to their next project.

The problem is that the current owner never raised the rent for any of their units because "the tenants are quality and they didn't want to risk it". The tenants in each unit now have been there for the last few years, not the entire 10 years that the seller has owned. But with every new tenant, the owner never increased rent. The current tenants are paying $700 a month but the rental comps in that area are $1400 conservatively (similar properties on the same street are going for $500 a bedroom). That means if I purchase this property, I will need to double the rent. More than likely, I expect all the tenants will leave. I did meet the tenants and they do seem like great people, but this is business after all. 

My initial thought would be that this would be a great deal. Without raising rent, I would enter the deal with positive cash flow (not a lot of positive cash flow, but enough to make me feel comfortable). I will increase the rent of each unit to market value. In 6-12 months, I want to refinance and leverage the newly-created equity so I can purchase another property. I also plan on working with a property management company to help me with this process. I'm still deciding on whether to have the entire property vacated when I purchase it or wait for each lease to end (the last lease will end in Spring 2018). 

Is this deal a home run that can really kick start my investing career? Or am I missing something? Has anyone else been in this situation? 

Any advice is appreciated!