All Forum Posts by: Jackson Pontsler

Are they willing to do _____  payments upfront?  That could mitigate your risk.

I'm not a realtor, I have used wholesalers and realtors to purchased my flips and rentals. If you are looking on the MLS you will be using an agent unless you have a career like a lawyer where you can represent yourself otherwise the listing agent can argue they brought you in and will pocket both sides of the commission. If you are looking at off market deals a realtor isn't necessary but it will be up to you to do your own due diligence carefully and not have someone to hold your hand through the process.

Overall you get what you pay for and once again if you are looking to purchase on the MLS you will be using a agent.  Fortunately you will not be paying them as they will be taking their commission from the seller (as stated 6% total 3% to each agent)

Does this clarify your question?

I'm a firm believer in investing in yourself and education; and have actually bought classes like that.  That being said: No it isn't nessesary.  I've told people who want to be investors time and time again that outside of classes you can get a mentor or just leap in (school of hard knocks).  I always recommend finding mentors/successful investors in the area and BECOME THEIR FRIEND.  This can easily be done by: interviewing them, working for them (FOR FREE), buying them lunch or bring them a potential deal with promise that they will let you shadow them.  

In short yes you can be a successful investor withouth having to pay for classes.  That can be done by just leaning into it or finding someone to guide you (via classes or mentors).

I hope this help please let me know if it did or if you have additional questions.

@Tyler Ruff welcome to Utah.  As mentioned previously by everyone the Utah market is very difficult right now especially the 1% and 50% rules are very difficult to follow.  With that being said you will probably have to market to find your own deals or have one of the best agents in the state to help you.  That being said there are many things you can do to help you right now so when you find the deal to capitalize it.  Feel free to reach out to other investors close to you and see if you can learn from them via shadowing, interviewing or helping them.

My wife and I just completed a rehab and are looking instead to moving in and house hack.  I wanted to state that other than our rentals we don't have any other debt.  Also our rentals we do have are on large parcels of land that can later be develop to have multiples houses on them.

Rentals:

Mortgage with insurance: 2300 and 2600

Rents: 2800 * 2

New house

Current commercial mortgage: 3600

New potentail mortgage with cash out: 3000 (based on online calculators)

House hacking: $2000

I personally don't want to give my income here but before this new house we had a DTI of 34% after this it would transition our DTI to 49%. My question is what can I do to create a stronger case for my local bank to take over the loan? To note we've paid all the rest of our outstanding debt including cars and now just have a credit card balance that we pay.

@Brandi Graham i’m guessing its fortune builders correct?

@TJ McLelland no disrespect but that's way to generic, are you looking for rentals or flips?  Build your buyers via your realestate services or just trying to learn in general.  Big picture you like real estate investing, what about interests you the most?

@Vinay H. Not to cause any diputes however despite the sales declined of 21% I would argue its the number of houses hitting the market because houses prices are still higher now than when they were last year.  In fact the Salt Lake City board of realtors publish an increase of 5% purchase price already for this year

Most agents would understand as long as you stick witht he agent that brings you the deal.  I would encourage you to look at your broker exclusive agreement becuase that may add restrictions as to what you can do without paying extra money.

@Ki Lee the two biggest crimes I've seen investors do are: abusing concessions and wholesale chaining.

Both of these methods ruin relations that investors have with either realtors or wholesalers.

Abusing Concessions: Some groups, even ones that are here in BP, teach that you get the property undercontract no matter what and then in the inspection period you come in and push the price lower, substantially lower.  If you are an investor you know you need to pay for paint carpet and repairs yet these investors don't include that in the price and in concessions then try to get the price of those things taken off even when it is advertised as a investor opportunity and sold "as is".  Once the property is undercontract it hurts the seller to put it back on the market because it gives the perception of "the house has problems" because its been on the market long and someone back out.  Anyway the relation with the realtor is ruinned because they've worked with you to get a house undercontract with a price you agreed to and then you are instantly changing your mind and have left them high and dry to communicate your new demands to a party that thought everything was good.  Its fine to ask for concessions but that is for things that you didn't really anticipate like replacing all the electrical or plumbing not for "kitchen needs to be upgraded".

Secondly, wholesale chaining is when a wholesaler gets the assignment of another wholesaler who then tries to assign the assignment and so on and so on.  Each greedy party taking a slice of the pie till there is not enough left for the end buyer then the whole chain collaspes.  This ruins your relation with wholesalers because they offered you a great deal but you decided hey I'll take a little wedge off of this and someone else will still buy this.  I will state though that wholesale chaining can work when there is an understanding of what is happening but most people prefer to say I'm sorry rather than ask.

As I stated in my first statment its not that some investors are unethical (these can all be legally done) I would argue its less ethical due to an individual not being transparent and trying to put people in awkward situations where they are exploited.

Sorry for my long rant I hope it made some sense.  Good luck with investing in Salt Lake City or anywhere in Utah I hope this helped a little bit.