All Forum Posts by: Erik Hitzelberger

@Raven Parmer - The short answer is 'yes', there is such a thing as early possession.  Like any contract you simply need to understand and come to agreement on the terms.  Since she is the owner, she is actually leasing it to you.  What is the daily, weekly, or monthly fee you will pay for this?  Are you accepting it as is?  Are you required to carry rental insurance?  If something happens, who covers the repair costs? Do you have an opportunity to back out of the deal if something occurs?  As an extreme example, if the house burns down can you get out of the purchase agreement even if you may have been the cause?  What if the closing is delayed?

Your agent should be able to direct you to an attorney who can provide advice on this as well as accurately describe the risks to both sides.  Several law firms have 'standard' forms where you can fill in dates, amounts, and any specific criteria. 

@Raven Parmer - Congratulations!  The house looks great.  Good luck getting it sold.

@Michael Seeker - Chase is currently offer 0.60% on a 7-year CD with a balance of $250K plus.  So, this deal would edge out that slightly.  :) 

@Raven Parmer I agree with most of the above comments. I've 'purchased' several problem tenants in the past. Dealing with the situation can be time-consuming and costly.  If the deal doesn't account for that, delay the closing or renegotiate.

One quick note is that the seller doesn't have to send a 30 day notice in this situation.  She can send a 7-day  eviction letter demanding payment in full.  This might expedite the process. 

I'd be happy to look it over for you as well.  A 'good cap rate' is largely a function of your goals.  Are you just looking for cash flow?  Do you expect the homes to appreciate?  Have you adequately accounted for the increased vacancy and maintenance issues that come with certain areas?  There are lots of factors that need to be considered.  Regardless of everything else, you need to know whether the properties support your goals.  If so, then it doesn't really matter if you could theoretically get 1/2 percentage point better here or there.  

Please send me the list.  Thanks, Erik

Welcome Allen! I'd encourage you to check out KREIA as well as KREE.  Both are great places to network, learn, and find deals.

Hi Allie 

@Jeremy Ridges - You can obtain a license and just work for yourself as Darren stated.  The question you might want to ask yourself isn't 'can I' but 'should I'. 

To obtain your license you will have to complete 96 hours of class work and pass the real estate exam. In reality, this is a pretty low bar. Maintaining your license requires you to 1) pay annual fees to KREC and GLAR, 2) complete continuing education each year, 3) purchase E&O insurance, and 4) work under a licensed broker. Said broker may charge desk fees as well as keep a part of any commission you earn.

The time cost is more significant than the financial cost.  If you want to be a rehabber, the 96 hours you spend in agent class is time you don't have to learn how to be a better rehabber.  For that matter, you could complete multiple deals in 96 hours. 

I'm not saying don't become an agent, but you should make sure that doing so really supports your goals.  Building a team may be a better approach. 

Finally, I'd encourage you to koin KREIA. It's a great place to network and learn. 

Good luck!

Dan, if you are looking here in Louisville, I can help you out. Feel free to give me a call or send me a PM

Regards,

Erik