All Forum Posts by: Curtis Fergus

Treat it like you have in the past with flooding and mold, get quotes to have remediation and ask seller to reduce asking accordingly. :)

@Jared McNeel sure thing! Happy to help...

Seems like these guys want you to pay them to take an overly priced mentor ship course here in the valley. Where they will take thousands of dollars from you to "teach" you. Then "help" you by wholesaling you a property they marked up nicely. They might "assist" further if you need a hard money loan, just until you refinance again through their mortgage brokerage or sell with them as your realtor... be careful with this approach! What I have found through my own personal experience is to just come from a place of Value. I poked around for over a few years now to see what kind of groups would let me hang around and help them in exchange for learning. I chose not to pay anyone for their educational courses which left a sour taste towards me, but when I find a great deal to partner with on (my place of value) then it seems everyone is friendly all of the sudden and willing to help out. Take it for what it is my friend, dig in, find how you can provide value, learn as much as possible, attend networking events and local REIA groups etc... you will learn by proximity and experience with time. It will be a tough sell to get anyone to agree to meet for lunch. Unless they are descending on prey... jk... no im not...lol

I’d make a few calls to get an idea of costs to clean it out. Ask for atleast that much off your purchase price and close it if it’s a good deal. If you don’t want it even still then wholesale it!

@Jared McNeel you got it! 3.5 to 5% down for owner occupied depending on the program and lender is typical. Yes lenders see investment properties as more of a risk. Just make sure if you plan on house hacking a rehab to eventually rent out, most lenders require you to live there for atleast a year, but you will still want to buy at a deep enough discount that you keep that debt to income ratio solid when it comes time to rent... catch 22 is that if you are looking to buy a fixer upper with FHA to live in, it does need to meet their guidelines before they will lend on it. I guess I'm saying it's challenging to pull it off correctly with a 3.5% down approach, unless of course you find just the right deal! Always make your money when you buy!

It’s mostly about debt to income ratio when it comes to traditional financing. Make sure your mortgage on the property is less than 70% of what you charge for rent as a lender will only count that anyway when you need to get the next loan. You should strive for better than that though! There are many reasons for this, operating costs, vacancies, repairs etc.  Then you should count on bringing 20% down payment on the next one since it will be investment ( non owner occupied) You should be able to get more loans on future properties so long as your debt to income remains good. I think up to ten? Then start looking at portfolio loans or commercial loans...

It is overpriced, plain and simple.  Have you thought about a lease option or seller financing? You might be able to get what you need out of it that way or at the very least put a higher quality longer term tenant in there... If you go that route I may even have an interested party now.

A condo conversion is not necessarily an easy task. I would definitely start with city and county if I were you.  They will probably want a list of renovating to do from separating utilities, to soundproofing shared walls and so on... if this is the only way you see it working and you are unsure what you need for a condo conversion you might want to walk.  Hopefully you have a solid due diligence period 

I'm no lawyer and I suggest you talk to one if you are worried.  You can find several of those at SLREIA or I can refer you to one or two.  Some might argue that if you are wholesaling that it is easier if you are not a licensed Agent.  Agents here have to disclose that they are in fact agents and make sure their brokerage is included on advertising and such. Also, to keep yourself out of trouble always remember you are selling a purchase contract on a property, you are not selling a property.  However, your licensed friend can sell the property, through a brokerage. It might be a little confusing but if you hang around and keep learning it will all start to make sense.  In my opinion your "company" will neither gain or lose any legitimacy if you are an agent or not (for wholesaling). What I have learned is that the investor community around here is pretty tight and most everyone knows everyone, that being said I think your track record and experience will be what provides your company legitimacy. Good luck man! When you start finding great deals put me on your buyer list! :)

Not sure what you are asking, are you wholesaling to your friend the Realtor? Is he wholesaling to you? Are the two of you forming a company to wholesale to others? There are quite a few ways to get in legal trouble and your friend may get in some hot water with the Real Estate Board if you guys are not careful. I suggest coming to some of the REIA groups. I attend SLREIA, there are also great people at Utah REIA. There is a wholesale meet up every month in town that Jeff Rappaport and Brian Pitcher run that is super informative and FREE.