All Forum Posts by: Ezra Nugroho

@Eric DeVito I lived in Central PA for 2 years before moving to Cali. Since I am far away, of course I have to work with a local PM. Buying a 3/4 unit financed for 250k is certainly doable. Make sure you set aside enough reserve to stabilize the property after you buy it. The properties in this market are quite likely rather old, and sellers often have to sell because they have some deferred maintenance that they couldn't pay for. 

Have you considered somewhere closer? Scranton? Wilkes-Bare?

Welcome, Eric!

I am in California, and believe it or not, I invest in Harrisburg metro. I'd say it'a good but tricky market. Many little nuances that's not easy to figure out even for locals!

@David Krulac is the local expert, wrote a book, and has done a podcast with BP.

There are several local property managers over there, but it's really tricky to deal with. Hersey area is always good because of the medical school. If you decide on investing in HBG, I don't mind sharing with you my short list.

 The property is located in Highspire, PA. The extra lien amount is $32K and the property value is about $100K

It's been a month now, and there has been many run around. Thought I'd post how it's been progressing, and I do have 1 more question.

Initially seller seemed to try to comply to what's written in the contract. The only thing they were asking was proof of due diligence spending. We were able to easily provide proof of the inspection costs, but it took us a while to get a statement from our lender that they were not going to return our deposit that was used for appraisals. I understand that they were trying to protect themselves, and I am fine with that.

Next, seller seemed to talk to an out-of-state attorney friend who encouraged them not to pay back the due diligence costs, even-though it was clearly written in the contract. I am certain that they are not in attorney-client relationship, but just had some casual conversations. Not sure if the attorney even had a chance to read the contract.

Next, we wrote the seller that we'd like to settle the differences through a mediation, which is again written in the contract. We have given them a week to agree that they would go to mediation with us before we pay the mediation fees. They completely ignored us.

My agent is quite upset, and he prefers to pursue the case to the district court. The only problem is that I am out-of-state investor. I'd have to hire a local attorney to represent me, instead of me to just walking to a small claims court. All of this is just for $1200, and attorney costs would certainly quickly add up to more than that. I think the seller knows this and betting on me to drop the case because of that. 

I believe that we have the case, because it's all written in the contract of purchase that we both signed. Now the question is, is it possible to sue for the refund and also for the legal costs? Otherwise, perhaps the smarter thing to do is to drop the issue?

Thank you much!

@David Krulac You've got good eyes for great deals :)

But these are not your typical MLS deals, though. Right? What's your average fixup costs after purchase?

I'd say that the 3 most common topics that the podcasts covered so far are flipping, wholesaling and buy & hold.

I'd love to hear more on other topics like solo 401k and self directed ira, land sub-division, commercial RE, taxes, syndications, etc. 

Thank you guys for resurrecting this thread. It probably had to do with the timing when I posted it, it was quite late in the night, and I didn't feel like bumping up my own thread. Let see if this picks up now!

@Mike D'Arrigo I guess I saw you at the last San Jose meet up, but we didn't get to talk too much. 

Anyway my own answers;

1. Fave RE book: 

From Janitor to Multi-Millionaire by Mike Weese. Reads like an adventure book, and has a great chapter on taxes. http://www.amazon.com/From-Janitor-Multi-Millionai...

2. Fave Business book: The Millionaire Next Door by Thomas J. Stanley PhD. Talks about the lifestyle of unassuming rich people contrasting with typical big-hat-no-cattle poor people. Honestly, the first time I saw @J. Martin @Account Closed

I'd love to hear from @Jay Hinrichs for his wealth of experience.

@Jeff S. Of course you know that in most states, mortgages are recourse loans. But I can see your perspective that the risk is held by other entities too.