All Forum Posts by: Account Closed

Benjamin Burket Hey ! We are on about 30-45 mins from Albany in a quit more rural area . I would strongly recommend one of you get your license simply just for the kickbacks when you close a deal and also the mls access . The one HUGE deal breaker with becoming an agent is you need to work with a flexible broker. Some brokers charge so much in fees to work for them it would not be worth it . Luckily my wife works for a great broker in the area that doesn't charge them desk time or any bogus fee she just pays her MLS dues for the most part . Anyways we house hacked our first few deals and between low down payments , sellers concession( money given by seller to buyer to help with closing costs ), and receiving commish at close we have had to put very little money down on those deals . On top of the cash the ability to be plugged into the community , and having mls access are great benefits . My wife ended up being a real estate agent full time . This was huge pro for us was it gave my wife the ability to be more flexible in her day to day so she could be available for the properties just incase. This turned out to be short lived since we outsource almost everything at this point but it helped for a while. Lastly we have stumbled upon a couple deals before they caught traction with the market . I just closed on a 2 family that we purchased the day it came on the market and I never would have known the house was coming on and have been able to get my offer out that quick if she wasn't the agent . I hope this helps I know I just threw a ton at you !

Brian Towner so you are looking at a single family residence and to rent rooms out and not a multi family ?

@Nicholas Salvia also most power companies will charge 3 years back for the gas and power used outside of the unit even if you only owned it for 1 day ! its crazy stuff ! 

@Nicholas Salvia So ...... your going to have to put his meter in you're name and charge them more for rent.  I know that sucks but you have to.  you CAN NOT have a tenant paying for heat outside the unit they reside in.  if you get caught which I would assume you will by a tenant (they get really stingy) they will request a shared meter inspection and you would get absolutely crushed by the power company .  I just had this happen to me on a much smaller scale and its a legit nightmare.  I would personally cover myself and get the power company to give me the last 12 months of power and heat expenses for that apartment and then add like 30 bucks to that raise the tenants downstairs rent and take over the power bill.  Trust me when I say you need to take care of this becuase the fees would be insane if you don't.  Whats the power company ? search the shared meter rules for that company.  I will link to my areas company policy and from what I hear its pretty standard .  a simple vent in a hallway could cost 2-3 k as to my most recent experience .  I know its bad news but its ok you can still make it work and make it legal. 

https://www9.nationalgridus.com/niagaramohawk/non_html/rates_sharedmetr.pdf

@Pao Yang First I will say get out of those classes they are IMO a joke and a huge waste of money. Honestly those things are just evil. Everything you need is right here. When I started right out of college like you I had nothing but a copy of rich dad and a hope it would work lol ! did you read Brandon Turners book on real estate investing ? have you read his ultimate beginners guide. I know its silly to plug this on here but they are real honest books and guides. His book on real estate investing is so spot on . anyways what are you looking to do ? buy and hold? if so SFR or Multi families? do you own a home ? if not do you plan on moving into your investment ?

@Brian Linton  Great Question ! do you currently work and have income to show to help get your first property?  If you do this is a great start because getting a loan will be much easier.  

As a banker I would recommend speaking to a MLO (mortgage loan officer) at your local bank to see what kind of financing you would be eligible for and kind of feel the MLO out.  I would do this even before you have a deal in front of you.  I am not saying delay looking for deals but go see your banker while you look.  MLO's typically can give a good idea of what you qualify for without even running your credit, futhermore I do not recommend  running your credit until you have a deal you want to pounce on.  

also make sure you know what you are looking for when you speak to your MLO .  Are you looking to get a single family or a 2-4 unit or bigger? are you planning to move into this unit? these questions change the lending conversation and you will want to have a plan when you meet with a MLO.  

One more small tip.  I have found small banks and credit unions are a bit better to deal with when looking at investment properties !

@Drew Lamb At some point you have to make the dive and figure out some details after to an extent. What I see happen to many people is they are all excited and then go talk to their Attorney, CPA and banker and some friends and they come back with so many concerns they never make a purchase. I don't exactly know why but it seems the bulk of people speak negatively about REI and always have a family or friend that lost everything according to them. this same conversation usually ends with the negative person saying " I actually always wanted to get into REI but it just never happened."

Moral of the story prepare but DO NOT pause. move forward look at deals educate yourself on what a good deal is and if you want to really get into REI then act. Figure out contracts and accounting later.

One person you DO want to talk to is your banker before you put and offer in.  you want to make sure you can actually get a loan if that's the strategy you want to use.  

@Tera Carteranytime ! 

@Diane G.  I recently passed on a three unit that I absolutely fell in love with.  It was a beautiful brick 3 unit with an amazing flat down and upstairs two decent sized 1 bedrooms.  I think about and drive by the house all the time.  Its not all regret though I passed simply because the numbers are on the lower side of what I set as a goal and he would only sell it owner financed (which I would have loved) but with a rate of 6%  for 20 years but a VARIABLE rate.   the concern was if the rate got to 10% in a few years which could happen I would be very uncomfortable with how little it would cash flow.   It just wasn't a good enough deal or use of capitol but I regret not purchasing it all the time ! I purchased two 4 units right after I walked away from the deal and they both cash flow MUCH better, but I still think about this house all the time .  

@London Stewart The big pro for a house hacker is that you wouldn't be using your FHA loan so when you get your own house down the road or want to house hack again you can still most likely get and FHA and get the 6% sellers concession if you want it. This is very helpful if you get and expensive home for yourself and don't want a ton of out of pocket. the affordable home solution loan concessions is lower I think its around 3%or maybe even 2% . are you familiar with sellers concession?