Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Corby Goade

Corby Goade has started 31 posts and replied 2961 times.

Post: Tips and tricks for First Property

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112

Congrats on your new property!

I think the most important thing in investing is screening and management. If those things don't go well, it doesn't matter how great your deal is. If you are house hacking, screening is 10x more impoartant. 

I wrote a BP blog about the processes we use, you can read it here

Best of luck!

Post: Buying Down Points

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112

I think buying points right now is probably a bad idea. It's super expensive and within the next few years you'll very likely have an opportunity to refi in to a rate in the 5% range. If you plan to hold longer than 5 years, I'd reccomend you wait it out. The refi will be WAY cheaper than buying points and you'll likely end up with a lower rate than you can buy down to now. 

Post: What is required for disclosures?

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112
Quote from @Kevin Cole:

@Corby Goade Because nothing is official. A member of the association who is not on the board would probably not even know if they were selling. I wouldn't want to scare a buyer away because of some capital improvements that haven't even been voted on yet. A new owner would get to be a part of that vote. 


 You have material information that effects the desirability and value of the property. My opinion doesn't change, this could be a very expensive ommission.  

Post: Applicant with eviction

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112
Quote from @Bruce Yi:

I have an applicant with an eviction from 2019. He has since restored his credit (740) and has stable employment. What measures can I put in place to reduce my risk as a landlord? What questions should I ask during the screening?

Thanks in advance for your feedback.


 No thank you. What makes your situation any different? Surely there's at least one other applicant in your town who meets your criteria and doesn't have any evictions. I'd wait, no hesiatation. Evictions are an excellent way to take a decent investment and make it a nightmare. 

Post: What is required for disclosures?

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112

Absolutely. The rule of thumb is to over disclose, not the other way around. You certainly don't want to be on the other end of that lawsuit. Why wouldn't you disclose?

Post: VALUE: Now vs. What it could be

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112

Are you wrong? Maybe...

There's not enough info here to even speculate, but it's absolutely true that properties can sell based on the highest and best use and not necessarily today's retail value. 

Here's an example- I am developing a small subdivision in my town right now. It's surrounded by small, older SFH on large lots- half to 3 acres, right in the middle of town. We had a neighborhood meeting last week to discuss the development with nearby property owners. The couple who lived right next door to our development have an old home that they rent out- it's about 1000sf on half an acre.

They were worried that our development is going to lower the value of their home- and it absolutely will- no one will pay a premium for a small, old home that butts up to a big apartment building. 

However- as the land around them develops, the house will become worth less on the retail side, but at some point, a developer will come in and pay way more than the retail value in order to include their parcel in a larger development. They will have leverage and power far beyond the actual value of their property. 

In my opinion, this is a huge barrier for many new investors- they think they understand value better than a seller might and they try to convince someone their property is worth less than the seller believes it to be- that's a rookie mistake. Your opinion of value doesn't matter one iota. If there's no opportunity, there's no opportunity, your opinion is irrelevant. 

Hope that helps- stop worrying about if you are wrong or right- it's a matter of whether there is opportunity or not. 

Post: Sell the house to pay off debt?

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112

Lots of good advice here already. I'm not a fan of selling a property that is performing in order to solve a short term problem. Financial freedom comes from keeping property, not selling it. 

A few thoughts- do you have any equity in the car with the $20K loan? Why not just sell it and get a cheap car, pay cash?

The credit cards can be stifling, but in the grand scheme of things, $40K isn't a ridiculous amount. That's one decent flip (or two). 

Heck, I'd pull from retirement to pay off the credit cards before I sell the property. 

Congrats on all of the equity and cash flow, that's a great nest egg!

Post: Subject To / Sub2 - Is it really just this?

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112

Not a big sub to fan and definitley not a fan of people trying to wholesale deals off of the MLS. Most of the legit investors I know won't buy those deals out of principle, regardless of terms.

Post: Seasoning Period (New Construction)

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112

Seasoning for conventional loans is 12 months, but DSCR is really competitive right now and YMMV on seasoning for those. I'd start shopping around for terms and building relationships sooner than later.

Best of luck!

Post: Private lending. Where do I start?

Corby Goade
Posted
  • Investor
  • Boise, ID
  • Posts 2,998
  • Votes 3,112
Quote from @Jonathan Warner:
Quote from @Corby Goade:

I've got a few tips- like any other business, this is a relationship based thing. Get to real estate meetups and network with people out there doing deals. Here are a few high level thoughts for you as a beginner:

-Don't lend in second position

-Don't do deals with new investors

-Don't experiment with new strategies, even with experiences investors- ie, don't jump in to a first development project with someone just because they've flipped 20 houses. 

-Start at a title company- they will help you structure liens and deeds so that your interest is protected properly. They can help make sure your contracts reflect your equitable interest in the deal. 

-Vet contractors and builders that your clients want to work with. The trades can make or break a good deal. 


There are a billion more, but that's a start. 

Good luck!


 This is great, thank you. So basically, get an attorney to put my contracts together as the first step, reviewing them with a title agency as the second step, putting the other team members together as the third step, and starting the search for borrowers as the fourth? Or do you mean for me to approach the borrowers first? 


 You bet! Finding borrowers won't be an issue, so I wouldn't worry about that piece, just making sure you have an agreement you are comfortable with and borrowers and properties you are comfortable with. Definitely vet the deals, they might end up becoming your properties. 

Best of luck!