All Forum Posts by: Darren M.

I'm currently looking at a duplex in northwest akron for the second time to double check everything. Planning to make an offer tomorrow. Also made a few offers on rehab projects to give me something to stay busy while not at work. I would love to have 25k saved up before I started investing but I've got about half of that and a mentor to help get the ball rolling so I'm jumping in headfirst.

It's unbelievable that the people who work for this company don't have the ethical capacity to know this is wrong. I'm sure they are well compensated, but to knowingly be an accomplice to this type of business is disturbing. I saw a video of Armando Montelongo and his sheep doing the ice bucket challenge and it was sad how they all just fell in line. It was a depressing mixture of dupers and dupees all following his command. He calls them "the wolfpack," more like "the herd." 

It's also a giant red flag that premierfinancialtraining.net literally has no information (events, programs, owners, reviews, etc.) without logging in.

@Joshua J Bowen

 Thanks so much for your answer! Right, that's why I didn't want to toe the line of unethical. If that's the case then I will stick to it, I just didn't know if there were circumstances where that changed. Thanks for clearing it up.

I also wondered, will they finance anything that small or is it like FHA where I have to find a bank that will do a Homepath qualified loan (obviously a bank won't touch that amount)? And last question, will they put it in the name of my LLC (sole proprietor) if I'm living there or is anything to do with LLC considered investor territory?

Thanks again for your response, if you can't answer these questions, I still appreciate your input and hopefully somebody else can.

Darren

I am in the process of starting a real estate business in Northeast Ohio. Currently I live in the southern part of that area so my first step is to move to Canton/Akron area. I'll be buying a duplex and renting out half. For those of you who don't know, this market has many great deals to be had under 50k. 

Well I've been searching and just got a listing for a bank owned fannie mae duplex in Canton for 17,900. It has a 2/1 unit and a 1/1 unit, I would live in the 1/1. I've driven by and from the outside its in much better condition than the price tag says (just my uneducated eye test). The area is iffy. It's not in the ghetto but its encroaching the border. I once lived a few streets over, towards the nice part, and never thought twice about it, altought I was only 20 and probably didn't know any better. But we never had any problems with neighbors. Although I would love to live in a great neighborhood, the 17.9k pricetag is almost too good to pass as i could rent out the other side for at least 400. My questions more lie with fannie mae. Its currently in the "first look stage" for owner occupiers. How long would i have to live there if I bought as an occupier? Do i have to stay for the whole year? Are there any caveats that don't border unethical? Also, while in these early stages, does anybody know how much of a discount they will take? Or if I try a lowbal cash offer, will they just wait and open it up to investors? Has anybody ever done the online offer through them? I'm going to look it over with my realtor tomorrow and will post back, but any input is much appreciated!

@Evan Holley

 welcome to the boards! Ask a lot of questions, very helpful community.

@Jared Lichtin

 Which area of akron are you investing in? I'm looking to move there or canton (next town south) as soon as I find the right place, to get a better view of all the deals! 

Hello again @Sarah Miller! I was curious, are you purchasing in North Canton? From what I've found in Canton, 2 br units are usually more 500 range. Wondering if you found a good area of Canton or if you're in the higher quality market in North Canton. 

PS. I have a good friend named Jason Rose who has been successful in NE Ohio for quite a while (the one who's getting me started). He heads a workshop called Smart Start Real Estate Investing, which is aimed towards educating and getting beginners started. Check it out at SmartStartToday.com, at the very least it is a great group of almost 500 RE investors, lenders, and vendors to network with! This meetup page shows upcoming events! http://www.meetup.com/SmartStartRealEstate/

If you're not interested, no problem! Keep me posted on your ventures and I'll do the same! Good luck!

@Adrienne G.,

FHA is usually the best option for people with shaky credit, as it only requires 3.5% down + closing costs, which I believe CC can be factored into the loan. The only snag I think you will run into is the history of employment, so that may only be of help in the future.

As far as no money down goes, it is real but you have to find an investor and be able to prove to them that you can make them money with the money they are giving you. Which is very possible if you do your networking and learn what a good deal is, you can learn how to do on BP! You just have to be able to show them.

I really wish I had a "here's your solution!" answer to help you out, but I too am a newbie and I'm just trying to relay what I've picked up so far that may apply. Like @Paul Timmins said local REI clubs are a great start for information and networking with people who know the area. All you have to do is meet that one right person and it could change everything for you!

Keep researching and asking questions and you'll figure out which options you can make happen and how! Sending good vibes your way! Welcome and Good luck!

@Darrell Shepherd, that's exactly the kind of insight I was looking for! Thanks for taking a min to respond. I have a few people who would be potential lenders and I was just curious as to what might "keep somebody interested." Obviously everybody is different I just want some real world examples to see what works for some people. I think the statement that you made about people not giving out their life savings for 5% makes perfect sense. Thanks again! 

For once I'm not here with a newbie question that needs a solid answer. I recently listened to the BP Podcast featuring Ben Leybovich, and he spoke of having a 100% financed property, making $100 CF/unit being his minimum return. So what I'm asking for is some of your guys' experiences with getting a 100% financed properties that you plan to buy and hold. I'm looking at a duplex for my first 2 purchases so if it applies to that, great. What did the private investor ask for in return? Was it a basic mortgage at 5% over 30 years? 15 years? What happened if you refinanced and paid early, did you still pay them the 5% on top? Did they ask to be a partner and split profits? Somewhere in between? How did these deals work out? Were they good or bad in hindsight? If you want to give your personal hard numbers great, if not, maybe speak in terms of a 100k duplex cash-flowing 100 per unit.

Thanks everybody!

Hello @Pat C.! I am inexperienced but from what I've read cash for keys would be the easiest and may be the most considerate route.

Hopefully this isn't why the owner sold in the first place : /