All Forum Posts by: Don-Carlos Moniz

@Chris Levarek, thank you for breaking down your journey.  I was actually looking at your 13-unit in CoStart the other day.  Are you still working your W2 job, or have you made the jump to real estate full time?  Again, great story, thanks for sharing.

@Mike Machynko, educate yourself on real estate and personal finance.  There will be many distractions and temptations - don't let them steer you from your goals.  At your age, many people will try and dissuade you from this path - don't listen to them.  Find a local investor group and surround yourself with like-minded individuals.  Suck up knowledge like a sponge and be willing to do the jobs others avoid.  In all of this, make sure you take some time to enjoy life - real estate is a marathon, not a sprint.  If you have any questions, don't hesitate to ask.  Welcome to the forums, and good luck.

@Matthew Jackson, you may want to consider the Fayetteville market as well. The area has a strong rental market, and property values have not been driven up as high as many other markets. Like the others have said, it really depends on your investing goals and strategies. Fayetteville is a good market to invest in, but there are plenty of opportunities closer to the Charlotte area. Find a local REIA and start networking - you will be surprised at how many deals you will come across.

@Dave Moore, the biggest hurdle you will run into is the zoning.  Pinehurst and Southern Pines are both very particular about development.  The process could take months (or more) and still not be approved.  A project manager should handle the majority of the process, but it needs to be someone you trust.  While there is a shortage of rental properties in the area, I would ensure that your success in the venture is not limited to selling the property at a 6 cap in the future.  If you would like to talk more specifics about the property and process, shoot me a PM.  Good luck.

@David Katz, I'll start by saying I don't have a definitive answer - mainly because every situation is different, as is every investor. I would start with a call to REI Nation and just asked them what happened with the screening of the last tenant.

Outside of that, are both properties in the same market and comparable to each other?  It could be random chance that one tenant went bankrupt and a second is now having financial difficulties.  On the other hand, there may be other economic drivers in the market.  I would look to see if a major employer is downsizing or if there is another issue that may be of concern.  Across the nation, there are indicators that the real estate market is slowing (ever so slowly).

If you decide to sell, I would recommend getting a couple of agents to run the comps.  The estimates provided by Zillow (and the like) can be fairly accurate, but they can also be well off the mark.  Selling an occupied rental is not the same as selling a retail property, so I would encourage talking to a local agent who has experience selling rentals.  I hope this helps.  Let me know if you have any questions.

@Matt Ruttenberg, the short answer is that it will probably need to be a cash purchase.  The biggest question I would have is what do you mean by "uninhabitable?"  Uninhabitable but rehab-able is far different than something that is uninhabitable and needs to be demolished.  If the property can be repaired, you might be able to get a 203K loan, but there are hurdles to jump, and I think you have to plan on using the property as a primary residence.  Find a good local lender that works with investors.  Depending on where you are, there might be some local programs that may help fund the deal.  Good luck and let me know how it goes.

@Ben H., most firms will only work with an exclusive buyers agency.  I personally work with buyers with just a verbal and do the exclusive for a specific property at the time of offer.  12 months seems a bit excessive, but it varies from agent to agent and firm to firm.  Page one, section 4 is where the compensation for a standard transaction is entered (somewhere around 2-3% is fairly common).  When you jump down to page five, item f (under the note box), this is where the dual agency compensation goes.  That only applies if you purchase a property listed by the same brokerage that your agent works for.  That number is what the firm expects to collect for the deal in total from the listing and buying sides.  Basically, all expected compensation has to be listed on the form.  If the 6% is on page one, I would recommend a longer conversation with your agent - if it is on page 5, that is not an unusual number.  They should go over each part of the form with you before you sign.  Good luck in your search.

@Ceaneh Alexis, I think that you will find that same pattern around most of the major metros right now. The first advice I give new clients is to be patient. There are deals in every market, so don't rush to buy. Jump on Facebook and see who wholesaling deals in your search area and reach out to them. I am not overly familiar with the Atlanta area but look at some smaller markets within about two hours of your location. If you are not already, start going to the local REIA meetings. If you have any questions, don't hesitate to ask, and good luck.

@Phillip Mitchell, I would reach out to a real estate attorney in your local area for a contract.  As for earnest money - it is negotiable.  In NC, there is an earnest money deposit and a due diligence fee.  They are both credited towards the purchase, but earnest money is refundable (under certain conditions), whereas due diligence is generally non-refundable.  If you have a seller not asking for a due diligence fee, that is preferable (but not common in most markets).  Feel free to reach out if you have any other questions.

@Justin Pierce, I would add Tiago Title to the ones already listed.