All Forum Posts by: Devin Wilkinson

@Russell Brazil I don't know exactly where in the unit it is. The unit is from the 50's I believe. What are the places that wouldn't be an issue vs. being an issue?

I have been looking at a property and negotiating with the seller for a few months now. It is a 5-unit with 4,669 sqft. The heating unit is a very old American Std Oil furnace that has been converted to gas. The big issue (on top of it being extremely old) is it apparently contains asbestos in the unit. The previous plan to take the property down was with a VA my partner was going to get in which he would live in it. The VA representative said that the property would not pass inspection with that heating unit in there.

Would any bank loan on the property with an old heating unit that contains asbestos or is the only option to get the old unit taken out and a new heating system put in before a bank will lend on the property? 

We are thinking the only option is private/hard money cash purchase, remove old unit and put new heating system in (mini-splits maybe) and then refinancing it. Does this seem right or would a bank loan on it?

Any insight on very old heating units with asbestos like this and bank inspections opinion on it would be appreciated. 

Thanks

My question is whether it would be smart for me to get my realtor license at this time. 

A little background on myself: I am almost 20 years old and go to the University of Tennessee in Knoxville, TN. I am currently building a real estate company with a partner where we wholesale and we are in the process of buying our first property. My goal is to begin flipping houses as well as build a multi-family rental portfolio. 

Recently I have been thinking that I would like to eventually start a brokerage to add to my real estate business, at the very least it would be nice to market flips under my own brokerage. I know that you must have your realtor license (in Tennessee) for at least two years before you can try to get your broker license. Here are some of my concerns/questions:

1. I do not want to show houses daily under a broker as a real estate agent. So one of my questions is for the two years you hold your license as a realtor do you have to actively be practicing under a broker for those two years before you are eligible for your brokers license or is it just holding that license for two years that matters? 

2. One reason I am interested in getting my license is it will give me another option to help a homeowner if the wholesaling route isn't best for them. Would there be issues wholesaling with my realtor license or anything related? 

3. After I graduate college in 2022 it is likely that I will move to Florida or Texas. If I did, would I have to start over in terms of getting my brokers license or does your experience transfer state to state and you just need to pass the state specific exams?

I would appreciate any help, thanks!

@Kevin S. After doing some further research on properties owned by this person there are a few that have the same 249,909 price and same sale date so the package deal makes a lot of since as the answer.

This trend is true for several properties that this person owns, not a one time thing.

While analyzing a property I looked up the tax records to see the tax appraisal and how much it was last bought for. This house is a 2 BR 1 Bath house in Johnson City, TN and approximately 1,000 sq ft. Johnson City is fairly "ordinary" and doesn't have a really high home prices like LA or San Francisco.

I found the following sales data:

2000 - $35,000

2001 - 35,740

2004 - $385,000

2011 - $249,909

The total market appraisal on the taxes (I know that market appraisal isn't the most accurate but its usually in the ball park) is $56,700.

Why would someone buy the house for so much more than its worth? Is there some kind of tax benefit from it if you do this when selling to a family member or something? I've looked at 100's of tax records and never seen anything like it. I'm very confused and would like to know if anybody has any ideas on why something like this would happen.

@Miller McSwain Hey! I am also a student at The University of Tennessee like yourself, a finance major. I am in the early stages of my real estate business that I started with a friend where we wholesale houses. We are hopefully putting our first flip under contract this week and plan to ultimately do multi-family buy and holds. If you are interested i'd love to meet up sometime and we can talk some real estate. Just shoot me a DM!

So does that mean it would be possible if they did co-sign? @Harjeet Bhatti

@Greg Scully The problem with FHA is that I will not be living in the house. Seller financing is an option that we will definitely be looking for though. I appreciate you thinking I'll find a way, most people say I need to wait and stop being a dreamer but I know I can make it happen.

I am currently attending the University of Tennessee and am 19 years old. I have a summer sales job and have the potential to make around 100k if I do well enough. Lets say I make 60k after taxes for this discussion. I will be turning 20 this summer and I want to start buying rental property by spring 2020. I know that normally for traditional financing they want to see at least 2 years of employment but would it be possible to get a loan if I had one of my parents cosign on the loan, one makes about 80k and the other about 400k. I am not sure how the cosigning works on rental property loans. I'm just curious about how traditional financing look at commission sales jobs, age, and cosigning. (I have had a credit card for about a year now with no late payments so it will be about 2 years with it when I would want to buy a rental property.) Ultimately would traditional financing be an option even with cosigning, or do I need to plan on buying my first property for cash. My current business partner is also doing the sales job so together we would be able to buy a SFR for cash if needed, but leveraging would be ideal. Then that leads me to refinancing as an option if traditional lending is not available in the beginning.

Thanks for any advice or input you may have!

I closed my first wholesale deal earlier this month using an assignment of contract but have not done a double close. A deal I am currently looking at may have a spread large enough to justify a double closing. I understand that a double close is just buying a property and selling it a couple hours/days later. My question is about the order of signing things. After I put a property under contract with the seller and bring the paper work to the title company can I Immediately sign a purchaser and sale agreement with the new cash buyer even though I do not own the property yet? Then do I just bring that to the title company also? 

I would appreciate if anybody could clarify this process a little more. I'm just not sure how I can put a property under contract to sell before actually owning it. 

Thanks in advance!