All Forum Posts by: Gary Parker

@Ethan Bowen is correct about the one of the people was VP of SLREIA. I knew that person fairly well and am well shocked. But, none of us know the whole story. The REIA that shut down was the Orange County one that the two people were associated with. I subscribe to their CA REIA emails even though I am in Utah.

You would gain equity by paying down the mortgage you took sub2.    @Brian Gibbons is a wealth of information on this subject.

@David Linton I have not looked at the financing side so I really can't answer your question. However, your first purchase would probably be FHA 3.5% down as owner occupied.

I would do what @Travis Fisher suggested and find a duplex or 4 plex and buy owner occupied.  The process will teach you a ton.  Perhaps start with the financing side of the transaction.  Start talking to mortgage people and see what you need to purchase.  My personal opinion is if you start young and focus on buy and hold you will be very well set sooner than you might think.  And be sure to read the beginners guide.

Welcome!

When you look at your County Recorder's Office is it listing two address that are the same or just one address? Very typically there is a property address and the address the tax notice goes to. I would verify that when you make a trip to the Recorder's office. Perhaps you have to pay a subscription to get both addresses. One way or another both address should be there IF there are two separate addresses.

Your County Recorder's Office.

Good evening Seth. Your profile says you occasionally flip houses when time permits. It seems to me one must buy below market value in order to create a profitable rehab. Please explain how you buy properties with enough margin to rehab and make a profit. To me no matter how one looks at it, a retail buyer could buy a property for more than a rehabber no matter the amount of work needed. The retail buyer can rehab themselves with no profit factor.

To disclose I totally disagree with your statement. I have bought my fair share of properties below market value and the sellers knew it. I dont hide it. As a matter of fact I tell them the difference between what I think they could get off the MLS vs what I will pay. I show them comps. Simply put price is only one factor in the motivation equation.

I am licensed, so I must use the state approved contract. However, I have an addendum that is quite long with all kinds of disclosure including the fact I may assign the contract for a profit. In Utah there is a specific addendum to deal with assignment; however, I choose not to use it and simply do as stated above. Could I get in trouble....maybe. I have seen two contracts that other investors in our area are using, and they are simple one or two page contracts mostly designed to benefit the buyer. You said the magic word...disclosure.

I guess the question is is one considered a principal when one puts a property under contract with no intention of purchasing the property and never having ownership? I dont know the answer to that, and I dont know how the Division of RE would interpret that.