All Forum Posts by: Chris Sellers

Bradley,

Sounds like a stressful situation.  I've been put in spots by a sloppy mortgage broker too; it's no fun.  

If you're almost at the finish line with the bank, it's probably going to be your best deal.  Can't hurt to thank the seller for his patience, ask if he'd be interested in owner financing if the loan has further delays.  

Hope it's all smooth sailing from here!

Chris

Solomon,

Congratulations on finding such a fantastic deal!  I'd pay the $28,900 and start the rehab ASAP.

Good Luck!

Chris

Johnny,

50 is just a ratio.  Monthly rent to purchase price.  If a place will rent for $1000 per month, I prefer to have less than $50k in it after rehab.   Lots of other factors too (mentioned already).  

This becomes more difficult to find if you have a lot of money to invest, but if you're starting out, you can pick and choose a little more and get the deal you want.

Good Luck,

Chris

Russell,

You realtors are absolutely crucial for investors.  Worth your weight in gold.  I work with one and he's fantastic.  I have 2 multis for sale right now where I'm paying the normal 6% split because he's dealing with investors and navigating some complication.  I've paid more than 6% for lower cost deals or when he brings incredible off market stuff that is in hot demand.  

He totally understands, however, when I sell a new house in a sellers' market that he just can't bring that much value to that deal. Once it's in MLS, it's going to be seen by everyone, multiple offers, highest and best. He offers the flat fee to me to handle the other realtor and closing. To me, he's a total pro.

Thanks,

Chris

Matt,

I'd stick with my person who got the deals for me, as long as you want to continue to work with her and you don't think either will make a big financial difference.  I prefer a smaller group of people working hard for me to a larger network working some for me.

In this market, I definitely wouldn't pay listing agents very much to sell high end new homes.  3% to the buyer's agent, a flat fee (~$2k) to the listing agent should do it.   What are they really going to do for you anyway?  

Good Luck!

Chris

Johnny,

It can be confusing for sure.  A lot of folks on this site are wicked smart and do well with complicated formulas.

My first "go to" formula is:  offer price <= (potential rent) x (50) - (rehab cost)

For example:  offer price <= $2100x50 - $5000 or $100,000

You can move your "50" number up a bit if you want.  I've purchased them as high as 82, but I like to stick with 50.

Of course lots of other factors to consider (taxes, insurance, vacancy, appreciation potential, maint).  

Good Luck!

Chris

Parris,

Mine was a duplex - house hack 1 mile away from my first job out of college (Morristown, TN).  I rented a cheap, old house for 1 year, saved the down payment and paid a contractor to build the duplex (2br, 1.5ba, 1k sq ft per side).  Paid 20% down, 15 year loan (no pmi).  

I lived there about 4 years, moved away for work.  I kept it 1 year after moving away, then sold it.  Didn't like managing it from 600 miles away.   

Good Luck,

Chris

Andrej,

I don't think you're going to find what you're looking for on this forum.  Real estate investing is pretty location specific.   

Good Luck,

Chris 

Skye,

Welcome to BP!  Lots of great information here.  I saw your goals, looks solid.

Good Luck!

Chris

Nate,

Great ambition!  Congratulations on nearing graduation from college.  Sounds like you have a lot of great stuff going on.

I would keep researching real estate as you're doing, graduate, get a good paying job (maybe in real estate, maybe not) and work on saving cash for your first deal.  Maybe a good duplex or triplex to hack?  If that doesn't satisfy your need to be in real estate, work part time for a property manager (in addition to your job), collecting rent or getting apartments ready for rent.  You'll learn a ton there and make connections.  

It's all about being in the game, keeping  your mind focused and networking.  Deals will come.

Good Luck,

Chris