All Forum Posts by: Kris Fox

I am a realtor and I flip houses. I list my own houses, but this would apply for any realtor listing a client's house or their own.

I always get asked this very simple and basic question "Do you have any other offers on the house?"

If you answer, "Yes", I've had several realtors say, "OK, then we're not going to bother coming"

If you answer, "No", then there's a perceived edge in negotiations on their part. I would rather not answer the question at all. Does anybody out there say "I will not answer the question."

One thing I just thought about today is, what if you put in the remarks  or this is how you responded "If you ask me if a house has any offers, I will always answer "No"" or you say "I always answer "No" to that question".  I'm not sure if that's any better, but it's a question that is not good for a seller to answer ever. It can only ever hurt you by answering that question.

Thanks everyone. Offer has been submitted. Waiting for response from bank. 

I've never heard that term. "Short money". Please elaborate.  

Individually metered.

C-neighborhood. All 2/1s with window-units for air.

I originally called the bank and the bank referred me to the manager.  I'm fairly confident I'm the only one that knows about this right now.

Bank owned property for 5 years. Been under property management for 2 years. Currently only 2 of the 12 are occupied. It has a new roof.   Current rent on the two is $425 each.  It can easily support $550 rent once some improvements are made. I asked why after 2 years of management only 2 of the 12 are occupied and the manager's response was the owner hasn't wanted to invest to get them rent ready.  The manager also says I'm the only one that's called asking about it so far.  Asking price is $162,500.  

If we go really crude here, $550 * 12 units * 12 months *50%.  $39,600. It seems like a good opportunity. Do I tie it up at $162,500 and proceed with due diligence? 

I've created the spreadsheet that Hal Davis mentioned above and I've done a few different scenarios.  If you're concern is interest expense, it's better to put extra dollars towards the property with the highest rate.  If you have equal or very similar interest rates with two different properties, then choose the property closest to being paid off.  Attack the rate.

I'm not sure if anybody else has mentioned this, but from an asset protection point of view, paid off properties are a target.  

A lot of good responses here, but one thing you should add to your business sense is a good amount of skepticism. The man telling you that "you're too old for REI" is the same man that benefits the most from you making that decision. I'm in a REIA with 200+ members. There are at least 75+ members older than 50 that show up to that meeting every month.

There are other considerations. If you want passive income, then you need to buy turn key real estate and stick it with a property manager. Rental real estate is not the best use of IRA funds, but it's an option. Notes are a close 2nd. You need to learn real estate investing to do notes or you need to form a relationship with a skilled investor to vet your notes for you.

I've gotten several permits using nothing more than Sketchup for the floor plans for 600sqft+ additions.  i think your first call should be to someone with permit review.  Tell him what you want to do and ask him specifically what you'll need.