All Forum Posts by: Brigham Pyron

Hi Art,  No, we've just recently closed on a beach rental and I'm about to close on another this month.  My issues with RentRedi have not risen to the level requiring immediate action.  They are functional while frustrating.  When I have some free time, I'll research other options that won't cost a fortune for the small guy.

Add-on:  I do like that I can automate my late fees, no partial payments, etc.

I agree that I'd look elsewhere.  This company might be a good option one day, but not now.  Their business still needs to grow up.  They have a payments 3rd party website, but it's hard to find the link from their main website.  Then they give you a random login/password for that site that you'll never remember and can't change.  They don't seem to realize that this is a financial organization.  If I have a problem with my newspaper delivery or something equally non-critical, I'd like an answer or fix  now, but if it's later today or tomorrow, not a big deal.  RentRedi is dealing with MY MONEY!  If I have a problem, I want it fixed now.  Going to their customer service call back calendar shows the 1st appointment when they will contact you by zoom is in 4 days.  4 days???    Their website has a very awkward user interface that is challenging.

When this company matures, I think it will be a very good option.  They just seem to be trying to add too much now and not doing the basics well.  

That said, if everything goes perfectly with no issues, changes, or questions, my main gripe is that it takes a week to get my money in my account.  They get an ACH from my tenant in their account same day, but won't do the same into my account.

If it's a good enough deal, there's always the option to find an investor to put in the down payment and you cover the monthly payments.  They get 25% of the deal and you get 75%.  Or you can sell only a part of the down.  Have you broached the subject with the seller to see if they will take a 2nd for the down?  I bought a home with owner financing and negotiated the down payment to 7% (just enough to cover the RE agent fees).  Maybe they would take back a second for 18% for 5 years.  Of course all these numbers are negotiable....

My IRA bought a defaulted mortgage with back taxes. I was able to negotiate with the county to reduce the amount owed. I've also head about negotiating with the bank for a lowered payoff if you buy it. I think a combination of the two can make it profitable.

Thanks.

OK, so if I want to buy books on BP, but am having problems, how do I contact anyone. There is not any means to contact BP or help page or anything helpful for problems.

Should I hire a lawyer, or call the county inspector first?  Our contractor didn't get a building permit and now after firing her, I'm finishing it myself.  Now the county appraiser left a door hanger stating he was measuring the "new construction/Building Permit" and has the building permit circled.  I don't know if the appraiser was here for the permitted deck/porch, or saw my pile of gravel for the wall.  I don't know whether I need to treat them like the IRS and don't talk with them directly or do give them a call.  Has anyone had issues like this?  Cobb County, GA by the way if you have direct knowledge.

Investment Info:

Single-family residence fix & flip investment in Covington.

Purchase price: $25,000
Cash invested: $30,000
Sale price: $76,500

Large older brick home in need of medium rehab in all areas. Has 3br/2ba with large den/fireplace and carport that could be enclosed easily for a garage.

How did you find this deal and how did you negotiate it?

This one fell into my lap because I like to talk. Before I was employed, I bought/sold stuff on ebay, Amazon, etc. One day I went to buy a drop ceiling speaker (bought $25, sold $175). The seller and I talked for a bit. I started to mention that I did real estate. Before I could finish he asked if I did rehabs. He had inherited a house and sold it with owner financing to a man who'd stopped paying 4-5 years earlier. He offered to sell, but I quickly realized that I needed to buy the loan.

How did you finance this deal?

After some simple negotiation, he agreed to $25,000 to sell the loan. I sold some of my ROTH IRA stocks and transferred the money to a Self Directed IRA Custodian. They bought the mortgage for my ROTH.

How did you add value to the deal?

I foreclosed, filed a disposessory, and got the guy out. After quite a bit of dragging my heals (I had finally gotten a job again and was learning the new job), I hired some people to come clean out the home and cut the grass/weeds. My ultimate decision was to not rehab it since it was a funky floor plan and more that it was nearly 90 minutes away from me. I just wanted to clean it up a bit to be more presentable.

What was the outcome?

We listed it for $90k and accepted an offer for $76,500. After paying attorney fees, clean up work, back property taxes, & RE commission, I figure my IRA made a $40,000 return this year on a $30,000 investment.

Lessons learned? Challenges?

I really don't want to do a rehab far from home. Paint and carpet, OK, but more major, no.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $18,000
Cash invested: $3,000

This is a fee simple, no HOA, townhouse bought during the depth of the RE crisis in 2010. It was an agent/investor selling as a short sale already approved by the bank. I picked it up and did some minor fix up such as paint, small plumbing repair and such. The last lease (Section 8) was $924 furnished and next month it will be going for $1100. I like it for a $21k property.

How did you find this deal and how did you negotiate it?

As I got started trying to find something in earnest, I'd talk with a lot of agents. One told me in no uncertain terms that I couldn't find anything for even near my $25,000 budget. So naturally, I found this townhouse for $18k. Also, you've got to look out for yourself. There were problems right before closing that my agent expected I'd eat an expense that was in the contract on the sellers side. I wouldn't budge since I had a contract with the contribution. The agents dug in their pockets.

How did you finance this deal?

I got $15,000 from a relative, $3000 from my account, and had the loan paid in 3 years still with positive cash flow.

How did you add value to the deal?

Just a little paint, plumbing, carpet cleaning, and a couple of new (used) appliances.

What was the outcome?

Rents of $700 right away, then $750, $924 recently, and now $1100. Even with some vacancies (caused only by me), I've taken in around $60k in rents and have a property valued about $75,000.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I worked with an agent after I found a property. This was before I got my license.