All Forum Posts by: Jack B

1. A real estate cycle is a natural occurring up and down of home prices in a given area. You determine what point a market is at in the cycle by looking at data. Median sale price(not median listing price), sale price per square foot, and new home listing numbers are all considered when determining this. A good way to tell is just going to Zillow and clicking on the "Local" tab.

2. People rent all throughout the year however the summer is the most popular season to rent.

3. Just about every metric you can think of... However most buying in a trough(low point) of a market's cycle is idea. #1 will help you with that one. City-Data.com is great for getting all sorts of data.

Could be a couple reasons...

• The property has some hidden problem. Asbestos? Constantly flooding basement? Or is it something concerning the property's history such as liens against the property?
• Overpriced. It doesn't matter if homes in the area go for 200-250k if they aren't 2 bed. Make sure you find properties with similar numbers. Lets just say your property is a 2/2/2 1500SQ craftsman on a 10000SQ lot. Make sure your comps aren't far off from that.
• Check out the neighborhood. Is there something wrong with the neighborhood(crime rate)? Or is it something concerning the neighbors such as their 100 pound barking Rottweiler next door?
• Something less common - It could be a 'fake' or 'bait' property. This is basically when agents, particularly in competitive areas, put up sold properties for sale. When someone calls asking about the property the agent says something along the lines of "Oh that property just entered closing yesterday... However I do have properties very similar to <insert property here> that I can show you".

@Bryce Cutler Here are some websites I've heard of:

directrentdeposits.com - Little to no information on it, sorry.

depositguard.com - I've heard a lot of good about them.

paynearme.com - This one seems like a game changer to me. It allows tenants to pay rent IN CASH at 7/11 and Family Dollar.

I know theres more... I just can't think of anymore off the top of my head. Hope this helps.

Jack

@Emilio Basa  Before you enter any negotiations visit your attorney and have him write up papers for your referral commission. Since you don't have your agent license it'll be hard but not impossible.

@Emilio Basa  A couple questions:

-What are your exit strategies if you were to wholesale?

-Do you have your agent license?

-Not really a question but you need to get all the information on EVERY door. What is the cap rate? Tenant background checks? Insurance(is there flood, recent claims, etc)? How old is the house and everything in it(including roof, hvac, etc)?

-Do you have enough capital to wholesale the properties?

If you answer those questions we'll be able to help you more. Anyways, to answer your question, bird dogs get anywhere from $500 to $2,500 per deal. But since this deal involves 10 properties I'm gonna bet above $10k.

@Account Closed  Go to the top right corner of the screen and click "search the site". Search for "business plans" or something similar. From there select blogs(or whatever source you want) and read blogs on business plans.

This article looks pretty good to me.

Replying on this via phone so I can't mention you. Anyways, HELOCs usually take 2-4 weeks but are usually on the lesser end. During a review an underwriter will review your financial profile and compare it to the loan's requirements. Make sure you bring financial records, past and current credit scores, etc. You can go to any bank that offers HELOCs and to be honest every reputable bank offers them.

@Jacqueline Brown  Ehh... I don't like this deal. Do what you want and trust your gut above all but it doesn't seem good to me. You're breaking rule #1(or #3, who counts..) - don't rent to family members. Anyways, if you still want to go through with it, here are some options for financing:

• Owner financing - Seller finances the property. Ask the seller if he owns the property or has a large amount of equity in it. This would be my option #1 but thats just me.
• Hard money - Short term loans (6-36 months), 8-15% interest rate, high loan “points”(fees to get the loan). Maybe? Who knows...
• Private money - I like to call it hard money w/ close friends/family. Maybe your mom wants to finance the property? Probably not since she is renting it but who knows...
• Home equity loans and lines of credit - It sounds like you have another property. If you have a considerable amount of equity in it, you can take out a LOC on it.
• Credit cards, investor loans, etc... I wouldn't recommend a credit card since this isn't a flip but who knows? Some banks(and credit unions especially) issue investor loans to clients they like.

Another thing about your mom... when I'm talking about family members I'm talking about cousins, aunts, etc... people you don't have a rock solid relationship with. Your mom? Different story. If you trust your mom and believe she can keep your property in good condition then by all means go ahead.

@Jacqueline Brown If you get the price down to $35k and put 20% done, your loan will be around 28,000. Bankers don't really like to do any loans below and around 25k and anything in the $30,000-$40,000 range is iffy.

What type of investment is it... Flip? Rental? I'll be able to help you more if you reply with that and some basic info(does it need rehab, approx. rental rate, etc)

Thanks

Jack

@Joshua Dorkin I started listening around show 55... then I binged and watched every single one in 2 weeks! Your podcast is great, congrats!