All Forum Posts by: Corey Hawkinson

@Giovanni Branch Similar thing happened to me, but even more minor. I completed the repairs myself prior to closing. If the property is worth it to you that could be the route to take. It ended up VERY well for me. If it’s a good deal don’t kill it over $800.

You could also negotiate $800 off the purchase if you complete the repairs.

@Collin Milone Interesting investing story... so I was under contract to purchase a 4-unit property. 2 buildings, each side by side duplexes. Friendly off-market transaction where the seller was older and retiring from being a landlord.

One roof was in very rough shape. A couple furnaces were very old. With that said, we were under contract as is. We budgeted to have the roof replaced and we were hoping the furnaces would stay alive a little longer...

My agent calls me to say that the roof has been replaced as well as 2 of the 4 furnaces. I was speechless. I asked what the —— he was talking about? We called the selling agent in shock. I guess the seller talked to his insurance agent and found out he could get a free roof. He also decided to replace the furnaces just because he felt bad. He confirmed that he didn’t want to adjust the purchase price. He just wanted to deliver the property in good shape.

A great surprise to me especially since the agreed upon purchase price included me factoring in the old roof and furnaces.

@Adam Smith I recently received 75% LTV, and 80% LTC. But that was on a 6-unit. As you go to a larger apartment building, especially if you're newer, a bank will want more of your cash into the deal.

@Eric Meinnert I agree that the 1% rule does not really apply to what you’re asking. You are thinking correctly about 15 year vs 30 year. Know what your goals are. If you can break even with a 15 year you are in good shape. You’re setting up for a stronger retirement.

In my case, I prefer the 30 year because I’m using the cash flow to expand further. In your case, you aren’t looking to expand further so the 15 year makes sense for your goals.

@Amanda Bruneau Just my 2 cents... try a route that others are not taking. If you’re blast mailing/texting/stalking 2-4 unit property owners that you found from a list you’re not the only person annoying that owner. Try a method that others aren’t using, maybe you know someone who works in real estate without actually working in real estate. What does that mean... do you know electricians? Plumbers? Maybe you offer them $1k if they ever find a distressed property owner that would be interested in selling. ($1k if you complete the transaction) They go to do a project and the owner is complaining that everything is always breaking. He/she can recommend you if they are interested in selling.

My best lead source is one of these types of people. In a way, she works in real estate even though she would never describe it like that. She does not want to be a landlord but she talks with landlords on a daily basis naturally at her job. Perfect fit for her to refer properties to me. On my current purchase, I’m the only buyer aware of the deal so I’m not competing with 100’s of people trying to outbid each other. I’m getting a good deal because of that.

@Joe Splitrock I do agree with you. The main issue becomes when the state/city takes it a step further to say you have to accept your first applicant AND you can’t use certain criteria including credit score, evictions, criminal behavior, etc.

However, that’s a separate discussion and I’m guessing we’re on the same page there.

@Marci Stein Keep in mind that there are lots of reasons for people to rent instead of buy. Example: work took my wife and I to another state for a 2 year assignment. We weren’t going to buy since we didn’t know the area and knew it was only for 2 years. Both with solid jobs, Chemical Engineer and Bank Analyst. There are lots of jobs with 2-5 year assignments at a specific location before moving to another location. Common in engineering jobs.

@Joe Splitrock Great advice from Joe! If they have been renting for 7 years at the current place you can easily verify their address. You can then verify if the “landlord is selling” story is true by checking if the property is listed for sale.

Also... you guys get to pick your tenants? Lucky! My state picks for me. (Only half joking, I have to select the first qualified applicant)

@Joseph Stamper Good advice above already. You might want to specify the location to get people’s advice with keyword alerts on. If it was my area I could recommend a few commercial lenders, but those numbers don’t sound like my area.

@Randy B. Despite what a wholesaler will tell you, 99.978% of the time you're better off listing on the MLS. You'll get a better offer, even when you factor in that off market might have lower fees.