All Forum Posts by: Clifford Merritt

@Allan Smith

Great recommendation! Purchased the book a few weeks ago and love the down to earth approach and real life examples. Very practical and applicable to today’s market!

@Jeff Lehman

For me, my rental application has a statement that says “lease will be terminated or application disqualified if any of the information was falsified on the this application”.

Then, one of the first questions I ask is when calling their previous or current landlord is: “so, how are you related to “John smith”? or whatever the applicants name is.

If they don’t disclose a relationship (had applicant list a friend as a previous landlord who they never even rented from) and you find out later it was a friend or a relative they deceivingly used as a “previous landlord” then I have a disclosure in the application to fall back on for not disclosing or falsifying information and can either terminate the lease or disqualify the applicant.

Ryan Pogue at Common Wealth Title, I just closed with him and also an attorney.

Investment Info:

Single-family residence buy & hold investment in Louisville.

Purchase price: $103,000
Cash invested: $24,000

Purchased my first property after many offers and counter offers that didn't work out on other properties. Many weeks later was able to close on my first deal! Asking price was 130K, then dropped to 115K, closed at a price of 103K with 1k towards new appliances and 1.5K towards closing! Purchase price of 103K and appraisal came back at 117K. I'm now a believer that deals are made, not found, just like this one!

What made you interested in investing in this type of deal?

I was looking for a SFH to get started with, get my feet wet. A buy and hold strategy.

How did you find this deal and how did you negotiate it?

Was found on the MLS by my realtor. Initially priced to high for my numbers. Waited awhile and price was reduced. I reran my numbers and found the price I needed. I started below my price which they counter offered just below my limit. No appliances so I asked for 1k to help support which they agreed. After inspections, property needed some work. I asked for 1.5K to help with closing as I will pay for all repairs. Which they agreed.

How did you finance this deal?

I used my money for down payment, financed at 4.125 interest rate over 30 years, conventional loan.

How did you add value to the deal?

Worked with my agent and sellers to find a happy medium. They wanted to sell but didn't want to deal with the inspection or repairs. I offered no strings with inspection and repairs if they would help with closing. They gave an additional 1.5k towards closing on top of the 1k towards new appliances.

What was the outcome?

Closed on 11/15! Making a few minor repairs and upgrades, then up for rent!

Lessons learned? Challenges?

STICK TO YOUR NUMBERS! As a newbie looking for nearly 3 months, making offers and counter offers, know when to walk. I was beginning to feel desperate and a few times caught myself compromising my numbers to "make it work". I'm so glad I didn't, be patient, stick to your numbers.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, worked with Brenna Brooks at Remax - awesome agent (and a house flipper so she helped me along the way). Worked with Todd Barnett at Interlinc mortgage very helpful with finding the right rates and closing fees. Worked with Ryan Pogue at common wealth title who also worked on title fees. They all helped to reduce costs and know the investor side of the business rather than a typical conventional lender.

Tyler - I apologize for the late response, been traveling over the holiday weekend visiting family. Currently I look for podcasts that I can relate to, # 248, #338, #340 are a few I listened on the drive over the weekend. How everyday folks, a shop teacher, mom, a full time waiter started out and now are financially free with passive income. Those keep me motivated as i'm in a similar situation. Work 60 hours and using late nights and weekends to learn, listen and study. I live in Jeffersonville and definitely would like to connect. Ironically, I was reading forums on how to find an investor friendly real estate agent. Would it be ok if I reach out to you? I really don't know the process here as a new investor. Currently searching MLS (realtor.com) in Louisville, Jeff and new albany areas and would like to make my first purchase within the next 30 days. Thanks again for your response and I hope I can offer something in return.

Thank you Jerry, i'll be in touch!

Michael - thank you for the advice. It can be hard to be patient at times but patience and research and double checking the numbers continues to be a learning experience. I like the PMI idea although a few of the lenders I talked to frowned on it and strongly suggested against it. I thought it might be a good strategy to earn my whiskers and also leave more cash in my account to buy another rental or two. I appreciate the advice!

Hi BP family, thank you for taking a few minutes to read this post.

I cant express enough my gratitude and appreciation of the openness and transparency and value these forums offer from folks like you who’ve been there and willing to help.

I’m in need of some help, I have a good amount of cash ($50k), excellent credit above 800 and looking into Louisville area, currently living 20 minutes north in southern Indiana. I’m looking for any recommendations for a realtor, wholesaler, lender, PM, mentor.

Any associations, (looking into local meetups). Would like to make first purchase within 30 days.

Any suggestions, connections or recommendations? I read all the time on BP to reach and build relationships. Hoping to make that connection.

I don’t have much to currently offer in return other than a willingness and strong desire to be mentored, learn and pay it forward with folks like me in the future.

Thank you again!

I have been using county tax sites across different areas that I've been looking to invest. Found the taxes listed on some realtor sites don't always match what the tax assessor website was showing. 

THANK YOU everyone!  I downloaded the guide and is VERY helpful. Advice about state laws opened my eyes to a few things i didn't anticipate and Tellus and naborly are resources I'm looking into.  Thank you again!