All Forum Posts by: Cara Lonsdale

@Jo Mendes , Keller Williams is a great company for so many reasons.  Training is just the tip of the iceberg!  Now, I am a little bias as I have been with Keller Williams here in AZ for over 20 years, and 4 years in CA, but IMO, there is NO ONE that trains, nurtures, guides, and positions agents for success better than KW.  They have a great IGNITE program that gets you off the ground running.  They never leave you in the wind.  After you have experience and are ready to go to the next level, KW has systems in place to easily transition you.  

Have you met with someone at an office near you to get some info?  If not, I would be happy to set up a meeting for you with a team leader in your area.  Just PM me and I will make it happen.

 All true.  Analysis of the deal is key.

Can I make a suggestion that may be a good compromise of both?  Look for 4-plex clusters.  Sometimes Sellers will have 16 units, but they are all deeded and zoned 1-4 unit (4 4-plexes), so they can be purchased with conventional financing.  Look for Sellers with multiple parcel #s associated with their sale.  This is a good indicator that the units are all separate, but being sold together.   Even if the SELLER holds them under 1 commercial loan, it doesn't mean you have to buy them as a commercial loan.  You can opt to buy each 4-plex individually, but then have all 16 units after closing.  Then, you have the increased units you wanted with the more desirable financing.

Also, when you go to sell, you can choose to sell them as a package, or only sell 1 at a time.  So, it gives you flexibility.

Just be aware of expenses. As stated above, run them through your deal analyzer to make sure they make sense. Sometimes 4-plexes can have HOA fees. If you are multiplying that by 4, it may not make sense.

 Agreed!  I know I wouldn't.  That just sounds crazy.

Actually, in my experience, smaller homes fair alot better than larger homes when figuring dollar per sq ft.  So, I wouldn't count your little house out just yet, but dollar per sq ft is just one of the measures that appraisers use.

I would start with a bullet point list of attributes about the house, repairs, upgrades, and so forth.  Do a little of the appraiser's homework for them.

If you know the community and the differences between floorplans, share that knowledge with a small summary.  EXAMPLE:  Our house is 824 Sq Ft, and the last recorded sale was for a 910 sq ft home, and the only difference in the floorplan was an added 1/2 bathroom.

If an appraiser can attribute the space to something he/she can put a value on, it may fair better for you.  In that same example, it may mean a $4K deduction from the 910 sq ft comp to account for the bathroom value.

Also, go to tax records and look for any FSBO or other recorded sales that did not go through MLS. Appraisers use MLS comps because it is easy for them. However, it doesn't mean they CAN'T use other comps. If you find any recent sales (within the last 6 months) that support your sales price, print out the info and give it to the appraiser.

Lastly, leave a copy of the contract showing the agreed purchase price, and attach a note summarizing how many offers you received, and what they were for.  This will speak to the demand.

You may not be able to be face to face with the appraiser, so you can leave it for him/her in that case, but if it is your house, there is no reason why you can't require that you be present for the appraisal.

 I don't know if anyone has brought this up yet or not, but if he quit claims this property to you, YOU are the new owner, not him.  I don't know anyone in their right mind who would sign over a quit claim to their property for $19K, when they have hundreds of thousands of dollars in equity.  Just not smart.

IF he is dumb enough to sign over his ownership of the property via quit claim deed, this doesn't put either one of you in the clear actually.  My guess is that the lender has terms for a non-assumable loan.  So, if they learn that a new owner has title, they can call the whole note due anyway because the new owner was not processed through an appropriate assumption of the loan.  

This is why wraps fizzled as an option.  Lenders were getting wise to people doing this, and calling them due.  Now the loan language is pretty strong stating that no assignment or assumption of the loan may occur without permission from the lien holder.

You taking on a 2nd lien holder position this close to trustee sale just means that when the 1st forecloses, your lien falls off, so you just discovered the quickest way to lose $19K.

 I can see that.  Are you speaking about the cross collateralization piece?  Does the requirement of attaching a personal residence to the deal make it scary for you as an investor?

I'd like to know what else might make it something that people would shy away from, or gravitate to...?

 I know it's legit, as it is in a program deck that I have available to me to offer to rehabbers.  I just wanted to ask for any feedback from people who may have used something like this in the past to hear about how it worked out for them.

I truly think that the choice is really a personal preference. I wince at the thought of telling someone not to go to college (I am a mother), but at the same time, I don't believe that college is necessary to be successful in life.

Real Estate is an EXCELLENT career, and there are many spokes of it (Residential, commercial, finance, property management, syndication, etc). Having a degree in something that compliments your area of expertise only helps you, and can sometimes validate you to others seeking your advice, however, it isn't required.

Getting in as an investor can be as simple as buying your first home for you, using a first time home buyer program for down payment and/or closing cost assistance. Then living in the property for the minimum required amount of time.  Get a roommate or two, charge them rent, and put that away for your next deal.  Then do it all over again.  Rent out your 1st property, and buy the 2nd one for you.  Repeat those steps until you have either the portfolio that you want, or the capital and experience to move forward with an investor purchase.

I would recommend 2 things to you. 

First, read RICH DAD, POOR DAD by Robert Kiyosaki. He actually has a whole series that will really speak to you as I think you will be able to relate to his story of having a family who can't see your vision.

Second, if you really want to get into Real Estate, I would recommend speaking to someone at Keller Williams.  Now, I am bias a little bit as I have been with them here in AZ for over 20 years, and I am a vest partner (so full disclosure).  However, when it comes to training agents to think like MILLIONAIRES, there is no one better, IMO, to train, get up to speed, nurture, and grow to the next level.  

I can set you up with a team leader in your area so that you can do some information gathering if you'd like.  Just PM me.  I am happy to set it up for you.  At least it will give you some options to consider.

Best of luck to you!

I purchased a car from one of those donation places.  They actually DON'T sell it with a title.  I had to get a bond title for it in order to register it.  So, donating it may be the best option and give you a tax deduction in the process!

Good question.  My guess is that it will depend on how the owners took title AND how they do their % splits of ownership on their taxes.

There is a title option that isn't very common, but allows for each divided interest to be handled separately from the other.  Usually it is used in the case of a broken home where each parent may want to will their portion of the property to their own respective children upon their death instead of to their spouse.

Sounds like a good question for a Real Estate attorney, or 1031 exchange expert.  

I can't wait to hear the answer.