All Forum Posts by: Jordan L.

Hello BP,

I'm just getting started into investing in real estate-- I also work for a company that offers access to all genres of attorneys to the general public for a low monthly fee. I've been contemplating approaching agents that I know in states that require closing attorneys to see if they'd be interested in marketing the legal service to their clients to use for closings and beyond. To me, this seems like a win/win-- the client saves money through a service that handles all of their legal needs (including a hopefully imminent closing) for $17/mo, and the agent makes commission from the sale of their client's membership. Licensees, what do you think of this? Is this a kickback or is it something that could enhance a buyer's experience with you?

Thank you,

Jordan Acosta

Thank you everyone! I went in at $71,500. Waiting to hear back from the bank on this one.

Hello BP!

It has been a long journey to this point, but I've finally gotten to the stage of putting in offers. I'm looking in SC for a buy and hold, cash flowing SFR rental. I've been putting in lowball offers on bank owned MLS properties.

I've gotten a response from one of the banks! This particular property is a VA owned home, listed for just a couple of weeks at 100k. I offered 64k cash last week, no contingencies. The bank has come back asking for highest and best, as there is one other offer on the property. Apparently the listing agent slipped and told my agent that the other offer is also, coincidentally, 64k.

So here's my question: what should I go in with as my highest and best offer? The property is worth (conservatively) about 130k, and would rent for about $1150/mo. Using the 50% rule, my monthly expenses will be $575 (including taxes and insurance, right?), leaving $575/mo for P&I if I want only to break even. Obviously, I want to keep P&I much lower than that.

What would your highest and best be on this property?

Also, has anyone ever put in an offer with the following strategy: I will offer $500 more than any other offer up to $xx? I've heard of this being used in the past but have no experience with this type of offer myself.

Thank you all!

Jordan in CA

Hi Brandon, thanks for the response. I'm going to buy from a distance, although my mother still lives in SC and is somewhat able to act as my eyes on the ground out there. I'm not sure yet how that will work out, but we'll see. I'll be sure to post on my progress!

Thank you,

Jordan

Hello BiggerPockets!

I've been a follower of this website for several years now, and this is my first post. Thank you all for contributing so much to this community. I've learned a great deal about REI just by spending time reading through threads.

A little about me:

I'm 27 years old and live in northern California. I was always very successful in school-- high school valedictorian, most likely to succeed, double major in chemistry and biology at San Jose State with a 3.9 GPA-- but I left undergrad at 23 with no degree because I didn't feel any passion for anything. I've since tried numerous careers and do hold a CA real estate salesperson's license (failed career path number 4, I think). To be frank, I feel like an utter failure in the career department. I own one house outright that I bought three and a half years ago and have worked tirelessly to pay off. I have two jobs in the foodservice industry-- the pay is great if I put in ridiculous hours, but to be honest I die a little more inside at work every day. >:)

I've always loved houses and real estate. I've wanted to collect them for as long as I can remember.

I've now taken out a HELOC on my property and am preparing to purchase my first rental property(ies) in or around Columbia, SC. I'm originally from SC, so I know the area somewhat, though I haven't lived there since 2005. I'm looking for buy-and-hold rentals in good neighborhoods, and in cashflow positive areas. My plan is this: I'll be putting 25% down on properties until my HELOC stops me. I'll then commence paying off each mortgage on my rentals until I own them all free and clear. Then, I'll reset and do the same thing again, each time growing my net worth exponentially.

As for my safety net, I'm keeping about $10,000 in savings for each encumbered property. I make about $75,000 a year (albeit working about 70 hours a week), have few expenses, and will continue to work at such a pace until my REI business has grown fairly large.

With my rigorous schedule, it's become obvious to me that I will have to find a fantastic team to manage my investments. I'm very nervous as I've worked quite a bit and have made numerous sacrifices to be in the position that I am today.

I'm looking to make as many contacts as possible in the Columbia, SC area. I'll need a good, investor-experienced real estate salesperson, property manager, and potentially a contractor. If anyone out there is or knows a wholesaler in the SC midlands, I'd love to talk with them as well.

Please feel free to poke holes in my business plan as well. I've never done this before an am hoping I know what I'm doing.

Thank you again BiggerPockets members for your knowledge and generosity! I'm very excited to have finally posted.

Jordan in California