All Forum Posts by: Kenneth LaVoie

I can see both points. To be clear, I only use the PM co. to find a tenant, NOT to manage the property -- the cost is one month's rent. I manage 2 companies already, so the paperwork, etc. comes pretty naturally to me, so I wouldn't necessarily need someone for that, -- and I have a great "maintenance" team in place, so the mgmt. really is only collecting the rent, OR relaying a maintenance or repair need. (basically, that is)

Hi all
I have just started buying SFRs, and have a buyer's broker who treats me very well. He's not always available though--I'm obvioulsy not his ONLY client--and as a result, I've found a good priced property only to have it sale pending by the time I can get a showing. Is there a "preliminary" way of tying up a property that I have a strong interest in -- I'm thinking simply faxing a simple "offer" to the listing agent, or owner if fsbo, or bank if reo, and then following up with viewing, THEN do an official purchase and offer from my broker. Seems I've read about this sort of thing. I want to be reasonable and moral here though, I don't want to needlessly tie up 5 properties, just so I can take my sweet time leisurely looking at them -- I wouldn't want that done to me and I won't do it to others. I'm just thinking it's a way to "jump" on a good looking deal when my broker might take a day or so ...

I'm curious if anyone has opinions on whether it's better to use local people, like maybe a private investigator for tenant screening?? Or are the online services complete and trustable?

I bought my first SFR and had a property mgmt. company fill the lease, but it cost me a full month's rent -- a pittance if he got me a much better tenant than I would've gotten by my own efforts, but it's hard to say -- I'm closing on my second and thought I'd give it a try myself.

My situation is that in the the warm months, I can make $60-$70 per hour in my lawn care company, so with the lost "$$$ opportunity" it might behoove me to use the property mgmt. company in the warm months and screen myself in the winter when my work load is light.

Any thoughts would be appreciated!
Ken

There's something I hadn't thought of in terms of quicker approval. I COULD remove my "financing" contingency because I am alays 99% sure I'll get financing, and if I don't I'm able to pay cash and refi later. This might be an option on the REO or foreclosures -- simple bid, 7 day building inspection contingency, closing whenever they want to!

Thanks for giving me this perspective -- I had it all backwards in my mind thinking I had to be "extra protective" and add as many contingencies as possible, but I see your logic very clearly here.

Thanks very much! Perhaps I can blend the two strategies -- make it 10-12 days vs. 7 and also have at least 2 inspectors. I have given some thought to having my own purchase and offer contract, so I don't have to contact my broker, have him send me one, etc. (I still have to have him send me disclosures though, so) -- I live in Maine -- I'll hunt around for a good one, or hand type the one I have and add my own items to it.

Hi All
With the help of this forum, I've made a couple of deals and am about to consider some foreclosures / REO here in town. (Winslow Maine) -- I wanted to ask a couple of questions about offer documents / process.

1. My "buyer's broker" who is working with me now generally gives me the standard purchase and offer contract to sign which has a place to check for building inspection, etc. and he usually puts 7 days. Now, my thoughts are, "that's fine for a retail property, but what about a foreclosure where you really need some time and maybe 2-4 different contractors to inspect and give estimates." -- is there something different that I could use that allowed for that?

For example, I'm thinking of tying up an REO today that's listed this morning at 24k -- needs total renovation, but ... I'll need time to decipher exactly how MUCH renovation.

Thanks very much all.
Ken

Thank you. 12,500 is what I used as well. I am going to contact a title company I use and see if I can have a list of foreclosures sent as well. I've heard that is an oft used move. Otherwise, they're not easy to find around here. But I know they're there!
Thank you again, for your time and sharing your hard won knowledge. I will use what you've shared as skillfully as I can!!
Ken

I'd love to own a rental in italy, a rental that my family and I could enjoy as well. Near the ocean. Are there some decent locales that aren't "eaten up" yet? We have a 7 year old daughter and would want to be in a place friendly for children, though I hear Italy in general is very child friendly.

I am considering gettting my feet wet with rental ownership - beach front (or nearly so) Ecuador. I have been along time subscriber to international living, and it's been a dream for a long time! Ecuador stands out, but so do Italy and France, as long as it's near the ocean. I've been to Costa Rica, and my guess is that though there are still opportunities, it's not quite the "retire comfortably on $5 a day" country it used to be.

Obviously, if my family and I are going to use this property, we'd need it to be a transient rental vs. full time -- Or perhaps I'd forego using it for a few years and just rent it out full time, then go to transient later? Just thinking out loud.

I'm a bit nervous about starting. I am leaning toward ecuador, but are there better countries -- we have a 7 year old little girl and I want to own in a safe country, obviously, and one that isn't going to be safe this year, and have revolutionaries storming the embassy 3 years from now.

So I'd love to hear some feedback on how to get started. My guess is to vacation to where we are considering owning, obviously, for starters.

This is true, it will not cash flow, at least not on paper. On paper, (including MY 9% "management" fee), it does expense out at 50% of gross rent with a cash flow of -1,014 per year. Obviously, I don't want ten of these, and am working on #2 which is a foreclosure, 57,500, will rent for 800-850 (4 BR vs. 2 BR) and needs approx $11k to get "move in". Total cost 58500 vs. 76000 with 100-150 more in rent. Same type of neighborhood.

I do admit to having a HELL of a time finding these 25-35k foreclosures, but would like to try harder. Do any of you recommend paying for a subscription to any of the foreclosure websites? I've been amazed at this area, the 2 foreclosures I've seen before the one I'm closing on, both were burst pipes, black mold, ceilings hanging down, and were snapped up at 60k like they were candy! So obvioulsy being int he right place, right time is important. Plus I only want to do VERY local, waterville and winslow Maine.

Thanks for the feedback about the lake or ocean property -- I already have ONE property that doesn't quite cash flow, so I'd better hold off! Thank you all, by the way, for the time you give.