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All Forum Posts by: Greg Scott

Greg Scott has started 73 posts and replied 3933 times.

Post: Bank is bullying us to close

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

Did you have it in writing that your closing was contingent upon the mold remediation done a certain way?   If so, they should offer evidence that it was done.   

Put it in writing that it does not appear it was done properly and that they need to provide proof that it was, otherwise you will not purchase the property.

If it was all verbal, you will probably lose your EMD or be forced to use it to buy the property. I don't think you have any recourse from the mold company after-the-fact.

If you have it in writing, then burden of proof is on the seller.

Post: Cash out refi or sell?

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

Cindy:

Lots of equity is lazy money so whether your refi or sell, you can make that money work harder for you so I believe you are asking the right questions.

I'll add to your list here with some commentary

Sell Pros

 - You can do a 1031 exchange and get all of the benefits of selling without the taxes

 - Depending on the sub market, future upside may be limited  (Where are your properties anyway?)

 - Opportunities to reinvest in better performing assets

 - As this bull market starts to peter out, better to have some cash on the sidelines for the next pullback

Sell Cons

 - You lose future cash flow

 - If it is in a booming area, you may lose out on future appreciation

Cash Out Refi Pro

 - Tax free distribution

 - You can continue to write off your vacation travel to Detroit!  (That may not sound like a benefit, but it is nice to have travel partly paid by the government)

Cash Out Refi Cons

 - Higher payments may reduce cash flow 

Post: I got my a$$ kicked yesterday in Columbus, Ohio

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

When little fish swim with the sharks, the sharks usually win.   But, why are you swimming in the ocean when you can be in a nice freshwater pond?

In a hot market, the MLS becomes a feeding frenzy. Don't try to compete there. Go where there is no competition. Try to find off-market deals. Ask lots of friends and family if they have a property. Try walking a neighborhood and send postcards to the unkempt houses. Look in craigslist for the fixer uppers. Talk to wholesalers.

I'm not buying SF right now (I'm 100% MF) but I'm amazed I still get handed good SF deal opportunities simply because I talk real estate with everyone.

Post: 14 Unit Multifamily. Is it a buy?

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

Based on the information here, this looks like a 9 or 8 cap, which would be a good deal.   But, you really need to know ALL the expenses before making an informed decision.   Missing are the following:

 - Utilities

 - Repairs and maintenance

 - contract services (e.g. lawn)

 - property management (you should always include a cost for that even if you intend to self-manage)

  - Taxes for YOU.   In many communities taxes can change dramatically after purchase.  Know what you will pay in taxes not what the previous owner paid.

 - Any major deferred maintenance

Post: Bank is bullying us to close

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

You left of the most important information --- What contracts did you sign?

Normally in a purchase and sale agreement, the worst they can do is keep your earnest money.  However, if you signed some other documents agreeing to cover costs related to cleanup, that is a different issue.

Post: North of Dallas Texas House Hacking

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

@Daniel Mina

One of the great things about Lifestyles is they have members there with a wide variety of knowledge.  You won't feel out of place.   The important thing is to surround yourself with like-minded people and people that are already doing what you want to do.

The mentors are very experienced and help everyone along.   I know almost all of the ones in the DFW office personally.   Say "hi" for me.

Have fun.   I'm jealous!    Fortunately, I will be down in DFW Labor Day weekend.

Post: Water Bill Responsibility

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

In most areas, as the property owner, you are ultimately on the hook for water even if the tenants have put it in their name.

I this case you have the HOA between you and the water provider. When I get fines from my HOAs, I pay them and then it is rebilled to the tenant. If they do not pay, it is like late rent. Provide them a 7 day notice and then start the eviction process. Zero tolerance.

Post: 10 and 16 unit for sale - East side of MI

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

Drew:

The fact that the 10-unit property has been sitting at $34K per door on the market for 2 years sends up major red flags.  That means no other investors are touching it.    There is probably some major defect.   Given it is averaging $475/mo rent this appears to be an oddball property, deferred maintenance, or in a rough location.  Proceed with caution.

The 16-unit is harder to tell anything from what you have written.

Multi Family is a very different game from single family as valuation is driven off of income and not comparative sales.    Still, there is a lot of cross-over, so with your experience I know you can be successful once you understand the basics of how to assess properties.

Feel free to send me a direct message and I can give you some additional resources and ideas.

Good luck

Post: North of Dallas Texas House Hacking

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

Daniel:

There are plenty of wholesalers active in your area. I mostly see single family listings, but not too many plexes.   Many of them post to Craigs list.   Call a few of them.  The best properties go fast or are never posted.  (Also, be careful.  The long-term wholesalers are pretty honest, but the world is filled with short-term thinkers.)

You may be able to buy a list of plexes from your county for a few $ which would allow you to do a targeted direct mail campaign.   I have a friend that was buying an apartment that got a good list from Tarrant county and I've been able to do that where I live too.

Another good way to approach this is to start networking with local investors.   Given you are house hacking, you are obviously new to investing.  Networking with investors, might help you not only locate a property but also learn the ropes.

Have you looked into Lifestyles Unlimited?  They have an office right there in Las Colinas.  I actually fly down to DFW a few times a year to attend real estate investing classes there.  Their basic membership is pretty cheap, a no-brainer in terms of real estate education, mentoring and networking.

Good luck.

Post: Deal: good, bad, mediocre?

Greg Scott
Posted
  • Rental Property Investor
  • SE Michigan
  • Posts 4,018
  • Votes 5,741

Will:

Assuming the area isn't a war zone, the numbers look fine.  It could be a good deal.

The one question I have is, why seller financing?   Is this something you asked for or something they pushed?  When sellers offer it, some times it is because they know the buyer can't qualify or they know it won't appraise for that high so no bank will touch it.   If that is the case, you may be able to buy a similar property from someone else for less.   That doesn't mean it is a bad deal, just something to understand.