All Forum Posts by: Chad Duncan

Wow. Thank you first for the epic post! 

I am looking at duplexes, triplexes and fourplexes at the moment. The ones that I want are in good neighborhoods with a mix of home buyers and renters. 

I have only been looking at properties that are on MLS through my buyers agents. The properties are all older/historic builds and require some small fixes here and there.

Can you elaborate the value calculated through CAP rate?

Thanks again!

ok. I guess it didn't post my question? 

Well here they are.... ( these are aimed at finding an investment property to buy)

1. How can you tell the true market value of the property you are looking at? Are there any sites that help give this info in different markets?

2. How do you come to these conclusions and who can you ask for a better idea? 

3. How should I approach someone who posted there property for double what it's worth? ( according to zillow) 

4. Any suggestions as to how to approach a seller? do I use my agent or do I go myself? 

Thanks 

How can you find a homes true market value? 

I know about comparables but what if nothing compares? 

How do you tell if your paying too much per sq ft? 

What happens when the seller is listing his sales price for double what the property is worth?

Thanks 

Thanks for the tips nick!

Originally posted by @Nicholas Miller:

Based on your statement it sounds like you will not be using a realtor which means you are going after FSBO's so the first thing you will want to make sure is that there is clear title. Do not just buy a property and get a QC deed make sure you get a property free of leans and encomberances.

In the Fort Wayne market there can be recorded leans such as mechanics leans, mortgages and back taxes, water bills and there can be unrecorded encomerances such as neghborhood code enforements which are not always necessary recorded but move with the property to the owner. 

Make sure you know what to look out for in your market by networking with other investors (i.e. BP pro to network, REIA meetings).

Originally posted by @Brent Coombs:

@Chad Duncan But, remember what you said:- "a VA home loan is contingent of the appraisal of the property. It's either the property value or the cost of the property; whichever is LOWEST"! ie. No equity either way! Hope you can still LOL...

 If the property cost is lower than the market value of the property, I will have equity. 

Originally posted by @Brent Coombs:

@Chad Duncan You said "I plan on using a home equity line of credit to fix the home after I buy it". But, you won't have any equity yet. Will your line of credit be happy about that?...

Lol. Depending if I buy the home under market value of course. That's one of my goals before buying a property. If i have no equity, then I'm going to fix it and then appraise it for the new value and continue from there. At least that's the plan, if it works out, then awesome. 

Originally posted by @Carey Edmund:

@Chad Duncan Make sure you read as much as you can before you make any commitments. Quick question...do you have cash in case something with your 4-pled goes wrong? Remember you will have four of everything so make sure you plan for worse case scenario. 

Yes I have a backup cash net for upcoming expenses. I plan on using a home equity line of credit to fix the home after I buy it. 

Originally posted by @Brent Coombs:

@Chad Duncan How did you pull off getting 100% funding with no deposit down, and without even having to prove that what you buy is even proper value? Kudos!...

It is a VA home loan and is contingent of the appraisal of the property. It's either the property value or the cost of the property; whichever is lowest. It is 100% financing as long as the seller absorbs 4% for closing costs as well.

I live in the hillsboro area near Portland Oregon and am looking for some investors to meet up with. I am new to real estate investing but feel I am off to a good start knowledge wise. I just need some like-minded and more experienced investors to help guide me through my first couple deals. If anyone is from the local area and would like to talk investing just let me know.