All Forum Posts by: Dorian Canelas

" . . . with the 3 listing agents of each REO property asking me how dare I allow my buyers, or investors to make such ridiculous offers. . ."

Your comments about a few divas who take it personally is probably right, and those people might take it upon themselves to haze the "new guy." I know for a fact that in my local area there are a few of the "top agents" who absolutely hate each other. You also need to realize that there are a few "bullies" in every profession. If someone is nasty to you about an offer you present, all you can do is thank them for their feedback. But how much time does it really take for them to present an offer and then relay back the "no, thanks" to you?

A realtor with strong local market knowledge who is interested in working with investors is a powerful ally for an investor. I feel fortunate to have found just such a realtor, and I take his advice very seriously. When he says "you aren't going to get it for that" I know he is very likely right. On the other hand, there have been cases where he suggested an offer value that was even lower than what I was contemplating. He really knows the market, too, including which areas are full of homes currently undervalued and which areas have shot up recently. He also has a really good idea about what specific renovations will run in terms of dollars. For example, we talked about replumbing an entire house and he was spot on. He's clearly perfectly happy working with investors as long as they are serious about it an have a specific strategy that makes sense. In turn, I try not to waste his time with wild goose chases.

But this is my fourth shot at a realtor in this area.

The first sold a townhouse for me, and she's fantastic as a seller's agent and as a buyer's agent for people who will be owner occupants. She has a good rapport with the other agents, but she is clearly less excited about working with investors (perhaps for the reasons you mentioned, but more I think it's just that she enjoys helping people find their homes.) She likes to come up with a package and show 4-5 homes a once, and doesn't respond rapidly to popping out to show a single home that is a fixer upper for an investor. I recommend her highly to friends who are listing their home or looking for a family home, and she is helping a coworker do that right now.

The second guy helped me buy one house and he was great and I really liked him, but he was a part timer who didn't survive the 2009-2011 downturn and he's now in a different career.

The third guy taught me a lot about what to look for, and he has dabbled in flips himself, but he was too jazzed about selling his own listings even if they weren't what I wanted.

Make a strategy for yourself: What can you offer investors? How can you get to know what kind of deal a specific investors wants and needs, and then find that deal for them?

Good call not to enter without notice nor remove property without notice.

How did this other person get in to "inspect"?

Assuming that the W/D was in the unit when tenant signed the lease, I would:

1) Apologize for the inconvenience and show them the HOA guidelines.

2) Voluntarily reduce rent by an amount that you determine seems reasonable based upon what the coin-op machines are charging (some are several dollars per load, so could be in the range of $25-$100/month rent depending on the condo size and what the coin op charges. If it's a 3 bedroom with a family, they probably do several loads per week and this should be a break even for them.) Amend lease to reflect the new property conditions and the new rent and have them sign and date.

3) Request politely that they not use profanity, say you hear that they are upset by the change but unfortunately your hands are tied, and in response to any threats calmly assure them that "Pay rent or quit notice" will be served following the lease guidelines if they do not pay rent.

Not legal advice, but that is how I would handle.

I would also probably look at selling this property down the road unless the cash flow is really good. The HOA sounds like a pain.

Well done, and I'll add my thanks for you sharing your trepidation before the first close.

I have bailed on this one. Thanks, everyone, for your comments.

Back to the buying drawing board . . .

Thanks, everyone, for your advice. I do have reserves to make big repairs, but I'd rather save those and look for a more sound investment.

My first instinct was to fix it because of course I've been thinking about how to update already, but then I start having these feelings last night to walk away since now in addition to what was obviously to the eye and then found underneath it seems like there could be lead paint, asbestos, and other older home issues lurking, and I appreciate you confirming that feeling. As Tom said, there are other houses. Thanks again!

Trying to buy my first SFM to make a rental. I'd appreciate any advice the BP community can offer.

Today was the inspection on my accepted offer . . . and guess what lovely surprises I had? Topping the list was the fact that the house was listed as built in 1985, but in fact was most likely constructed in the 50's-60's and then sawed in half and moved to the site in 85 complements of DOT money as a result of a major highway being put through the original neighborhood. So, the foundation was poured in 85, and it appears that most of the electrical and plumbing fixtures were updated and new siding was added at that time, but the majority of the construction is older. My agent called the seller's agent who insisted is was built in 85, but the inspector was adamant it was not 80's construction and some records digging by my agent's office revealed the truth.

Also, during the move they made some serious notches in joists and took out the entire center section of the main girder than runs under the center of the house. So, a pier is there going up into nothing with no beam above it at all right in the middle of the house, and the long central wall is basically holding the house up although the center is slowly sinking due to it's own weight. The inspector was so amused by this that he said he would likely post that photo on his website. There is also a structural issue with the roof. As this is a very small house, there is no cracking on the walls or ceiling to indicate this issue inside, nor is the floor badly sloped so you can tell without using a level (the rooms are small), and now I wish I had crawled on my belly into the very low crawl space prior to making the offer or at least brought a tennis ball to see how it rolls. Lesson learned there.

The numbers look reasonable but not spectacular with the deal I thought I was getting ($63K for the house plus $2-3k or even $5K for renovating, will probably rent for ~$800 at that point.) Talked to a PE today who thought the biggest structural issue would be several thousand to repair, but haven't paid him yet for a formal report. It will also likely increase the time to reasonable occupancy, pushing that into the Fall which is bad for this area (near a university, rentals need to be ready no later than Aug 1.) There were several offers on the first day this house was on the market and the seller took mine, but I'm not confident that they will make concessions. Should I cut my losses now rather than spending money on engineering reports, more inspections, appraisals, major repairs I wasn't anticipating, or should I hang in there to see what the seller can do for me?

Thoughts? I appreciate any insights, advice, or scolding you can offer.