All Forum Posts by: Glenn D.

@Jason Hawsey,

I always like to be kind, direct and truthful.  I let folks know that I am an investors and that I want to do 2 things.  I want to help them out of a situation, but I also use this to make a living so for this to be viable for me I need to make some profit too.

I understand that you don't want to insult her, make her feel bad etc.  I am that way too because I am a nice guy.  But I have learned that being upfront and politely honest not only earns trust but puts them at ease.  So do your home work to find out your max allowable offer is.  BP has calculators that will help you figure out your max offer, and then make her an offer "LOWER" than your max offer.  That gives you room to negotiate back up to your max offer.  

For example, in this case, I might say, Hello Mrs. X, I really want to help you out.  As you know I am an investor and so, I like to help people but I also need to put food on the table too.  So .. lets see if we can help each-other out.  In looking at your home, I can see that it will probably cost me "X" to put it back in great shape.  (I gently make them aware of all the things that I think need to be repaired without telling them that their house is a piece of junk.  This way it lowers the expectation bar on their side and lets them know that I see the issues that they already or may not know about).  Then I tell them how long it may take to get it back into shape which equals additional holding costs and make my offer.

Never be afraid to bring them down to reality, this is after all business not friendship - everyone gets a trophy.

I hope your hard work meets great opportunity.

Glenn

@James Fisher,

That sucks no two ways about it.  

The good news is people can absolutely be found but it depends on how much money and time you want to be put into it.  Believe me I have done that job before.  Now-a-days social media is your tech.  Search them on Facebook etc.  Look for their family, friends etc.  BUT the big thing is that you need good information on them to start.  Did they fill out applications, were they thorough, did you have them list relatives and or references, did you ever confirm the references?  Where did they work, they may know?  Send them a USPS register, receipt mailing that requires a signature.  If they made a change of address it will get to them.  You can pay for a service on line to find out details about people.  Be very wary of this and vet the company if you decide to use on.  A lot of them just take your money and give you googalable info, but the better ones will give you viable, usable data.  And then of course you can hire a private investigator to do a more thorough job of it too.

Good luck to you.

Glenn

David,

Good question.  I am interested in the answer too, but here is my idea - advertise them.  There are a ton of means to do this, from Craigslist, newspaper, Facebook, etc.  Literally one of the best ways that I have found lately is on Facebook.  It sounds funny but even in my little corner of the world there are tons of people selling things on FB to include houses.  I sold a home from advertising it on FB and I just bought a rental that was found on FB.  

I just typed in "cincinnati ohio real estate for sale" and came up with a bunch of options.  When I scrolled through it I found "Cincinnati Area Real Estate For Sale By Owner" I personally have been advertising in the groups and find things all the time.

May your hard work cross great opportunities.

Glenn

@Bill Fleener

I check out peoples  profiles before I respond and I love your goals.  They are definitely not go easy and cruise goals but they are achievable.  As for being overwhelmed - don't let that dissuade you.  Feeling out of control is only due to not having a plan.  And I think you may be like many analytical, go-getters like myself, if I have a "To-Do" list that I can check off I feel much better. So your going to love me ... 1st remember that all plans are adjustable and scrapable, but knowing that you need a plan is step one.  R&D is step 2. Execute is step 3.

So here is your plan.

https://www.biggerpockets.com/renewsblog/2013/04/1... 

@Bill Fleener

Welcome to the game!  I agree with @JD Martin that to look for deals and then find the money is bas akward, UNLESS you personally know plenty of people with money and they have said when you find one let me know.  Which would be fantastic but most everyone I know has a harder time finding the funds than finding the deals.  You being a commercial RE broker you may have people who like you with deep pockets who are willing to gamble on you as a newbie to real estate investing.  You tell us.

Think of it like any other purchase i.e. car shopping.  If you go out and find a great deal on a car, then sit down at the table, try an negotiate a good deal and get financing, 1 - your chances are better at getting a good deal if your waving cash and 2 - if you find out you can't get financing not only did you waste your time and the sellers time, BUT someone will quickly be by to buy that vehicle you fell in love with.

Opportunity favors the prepared!

As for the typical split, as I say all the time "It depends".  It depends on the type of deal, the quality of the deal, the person lending and the trust or relationship to you.  Everything is negotiable and is usually dependent upon the relationship you have built or not.  10% - 12% is pretty common and usually requires points and typically will want you to come to the table with 20% of the deal.

My mother-in-law loaned me money at 0% interest, with no time frame and no paperwork, because she knows me, knows that the deal was good and trusts me with her money.  I paid her back in 6 months and gave here 12.5% (25%per annum) because I love her and want to be a blessing to her too.

On one of my 1st deals I borrowed $X at 25% for 12 months but the lender also gave me free labor on the rehab which to me was worth way more than the interest I paid him. 

So it all depends.

May your hard work cross good opportunities.

Glenn

@Cameron C.

I know that it sucks, but I am glad to see you doing your homework.  The benefits will far out way the hard work.

@Deanna McCormick excellent points.

@Michael Johnson here is what I would do.  Everything under the sun has already been invented so there is no need to reinvent the wheel.  AND especially since I have no experience in Florida real estate law, contact another landlord or 3 or 4 who rents to college kids and see what they have.  Then run that buy a real estate attorney to make sure you are covered.  Because like Deanna said, as the property owner you can be held liable for anything that happens on your property.  

I would also make each tenant get a renters policy.  They are pretty cheap and it will help cover your assets (pun intended).

@Cameron C.

Here is the down and dirty!  You seem like, and I agree that you want to be above board and open.  As you said, you want to be informed and legitimate.  So "I believe" and "I think" are never good starters when talking legal ramifications.  NEVER go with I think or you should be able to... You can still go to jail for speeding on a road weather you knew what the speed limit was or not.  So as for is your Quicken loans broker correct, make him show you the clause in the documentation, read it thoroughly and ask a lawyer if necessary.  Most will give you a 1st appt for free.  As far as I know, most of the answers in this thread are correct BUT if it's in the mortgage documents that you "can not" sublet or rent out rooms, you will be the one breaking your agreement.  So make him show you a mortgage agreement and where it defines what he is talking about.

As many have said, I think he is wrong but check the paperwork and that will be the defining document.

Be smart - invest well 

@Juan Mendoza

Great place to ask a good question like this.  1st - there are tons of different systems on grading a region.  Zillow even has a rating system.  So you can either utilize someone else's rating system.  If you do, you have to see what criteria they are using to rate the area and see if that makes sense.  A great tool is to contact a local realtor and tell them you are looking at doing some real estate investing and need to figure out which neighborhoods are good and why.  Most will be happy to give you their knowledge in hopes of working with you.  

You can also look up any local real estate investor groups in your area and do the same thing there.

Here is what I pulled up on Zillow very quickly when I searched for Romeoville, Illinois and just chose a random home.  

Zillow predicts 60446 home values will increase 3.6% next year, compared to a 3.4% increase for Romeoville as a whole. Among 60446 homes, this home is 28.3% less expensive than the midpoint (median) home, and is priced 7.4% less per square foot.

• Walk Score ® 13 (Car-Dependent)

May your hard work connect with great opportunities.

Glenn

@Matt Bailey

Having just moved to Boston, I would say a great starting point would be to find local real estate investor groups and start working on building your REI team. Being new to an area presents a lot of challenges but nothing is insurmountable.

May your hard work connect with good opportunities.

Glenn