All Forum Posts by: Ian Tudor

Thank you everyone, that was very helpful.

Currently, I am in the process of putting an offer on a property that is 3 bedroom/1.5 baths. This isn't the only property in the area with this layout.
My investing strategy is buy and hold.

The tenant profile in this area wouldn't be affluent, probably more budget conscious/early career or in graduate school.

Has anyone run into any issues renting a 3bdrm/1.5bths property?

Or has anyone noticed prospective tenants hesitant to rent without 2 bathrooms?

I am in the process of looking for an investor friendly real estate agent in Richmond, VA.

Does anyone have a referral? This would be greatly appreciated.

Happy Memorial Day!! :)

Tanya, thanks for the article, as we are looking in Virginia again. I researched the new law, and the following link says a buyer does not ever have to sign an exclusive buyer agreement, just must declare if they want the agent representing them or not. It can be exclusive, but doesn't have to be, although from many agents' websites, it appears many are misleading the public into thinking it must be exclusive.

http://www.varealtor.com/sites/default/files/Agency_Change_June2012CW.pdf

Again, I appreciate everyone's response. This was very helpful for me.

Lynn M. Thank you for clarifying. I looked into the law as well. This was exactly what I was hoping for.

Thank you for your replies.

Tanya S. - Is the best way to work with multiple agents would be to sign short term contracts (1 week) with them?

How did you think through the process?

I ran into an issue today and I wanted to get your opinion because I'm sure several of you have ran into the same issue.

Currently, I am searching for a house and I am working with multiple agents. Essentially, I am giving two agents a chance to prove themselves. In order to find a good agent, you will get a recommendation or you can find it through trial and error. I am currently using a combination of both. Most agents I have come across aren't compatible for investors.

Today, I contacted an agent, who asked if I was working with another agent. I said I was since I am going out this weekend to look at properties with one. He said that I have to sign a contract with this agent and be exclusive with them. Apparently a new ruling came out in 2012 that forces people to stay with an agent for a certain period of time depending on the contract.

Is this the industry standard or is this agent wanted complete control of the situation?

Has anyone done a transaction like the one I described above recently?

Thanks Kelly, this is good to know.

My idea with the second mortgage would go as following: I would put down 10% for the property, get a conventional mortgage for 80%, and a second mortgage for 10%. I know this was a common practice pre-crisis but as we all know several of those industry standards haven't come back.

I've looked into the FHA and it doesn't seem feasible given all the fees associated with the process. While it may be nice to put down 3.5%, mortgage insurance is 135 basis points of loan value as of April 2013. In addition, before you even start paying your mortgage payment, you have another 1% mortgage fee that is wrapped into the loan. I feel that is difficult to make money on.

What about second mortgages? Would this be an possible for a first time home buyer, who is looking to live in the house? What does that market look like?

Hello - I have been spoken to a mortgage broker recently about purchasing a SFH or MFH. It will be owner occupied for at least a year, if not longer. However, he said that lending institutions require at least 20% down for duplexes and 25% down for triplexs and quadplexs.

Is this a common practice even though I will be living in the property?

This leads me to my second question. If this is the standard, I want to be able to lower this requirement by finding other financing elsewhere. What I mean by that is that I was curious about the second mortgage market nowadays.

For a first time home buyer, would a second mortgage even be an option?

I'm attempting to explore all options before I commit to anything.

Best,

Ian