All Forum Posts by: Jacob Phillips

Hey everyone, it's been a little bit since I've logged in.  

Is the marketplace still available?  I'm having trouble locating it.

Thanks in advance!

Good morning BP and happy Election Day.

I currently own four cash flowing rental units acquired in two separate sales starting back in February. They are performing well and I have six months in reserves for my personal finances.

I’m already starting to build a reputation in my rural town of someone who buys real estate, and I recently lost my job. Since I have the cushion saved up, and since my grandpa was already willing to fund a flip, I’ve decided to pursue that for now and spend my 80 hour weeks on my own goals and dreams. I can always go get another job.

I’ve also decided to go ahead and get my real estate license. I have a very successful broker in town with properties all over the country that is willing to hold my license, and he obviously stands to be an excellent mentor.

My reputation in town is starting to bring me leads on a semi regular basis, and now that I'll have a handful of ways to handle those leads (buy and hold, flip, send to other investors, list on MLS with my license), I wanted to figure out a way to pay referral bonuses to the people who send them, based on the end result of that lead. I also know that in the coming weeks I'm going to learn more about how that may be complicated as an agent.

What do you guys do? What’re your thoughts? Will having my license hinder my ability to pay referrals to non-license holders? I’m in Missouri

@Alex Olson

To be honest I’m seriously peeved at the situation because no new lender will be able to close that fast. The bank in question is offering 1-1 at 4.75, 2-1 at 5.25 or 3-1 at 5.75.

I have a duplex under contract that was supposed to close a week ago. My original bank, with whom I do all my business and who holds my first mortgage, was supposed to do a 25 year fixed at 4.75%. They cane to closing, instead, with an ARM that can start going up in 12 months.

I walked out.

I’m in a small rural area in mid-Missouri and everyone here is trying to call my duplex a commercial property (it will NOT be owner occupied). Am I understanding something wrong? Because I was under the impression that 1-4 units should be able to get residential financing

@Yolanda Brown the lady who contacted me from from our housing authority actually made that very clear, and I’d read that before. Thank you!

@Laticia Braxton thank you Laticia! Actually it turns out that the woman asking is the Housing Choice Voucher Coordinator for my area, and she is desperately needing more housing. We had a very nice conversation and she echoed many of things you all have said (and that ice read before). I wasnt and still am not afraid of section 8, I just wasn’t sure what all I had to do accept section 8 and there wasn’t sure how to answer her question.

From my understanding so far from my conversation with her, I don’t HAVE to accept section 8. But she is sending me information to help get set up in the future!

@Frank Procopio to be honest it’s a little bit of both. Seems like just a little more than I want to tackle in these early go rounds.

@John even I haven’t gone through the process of becoming section 8 myself?

I’m advertising my second unit and almost immediately I was hit with the “will you accept Section 8?” question. I really have no idea how to navigate that question so I’ve tabled my reply and I’m curious what you guys have to say about that. I honestly wouldn’t know the first thing about accepting section 8 tenants, but I’m not sure how to turn that down without getting myself in trouble. Any suggestions?

@Jonathan R McLaughlin my bank is letting me do that, and actually wanted it to stay as a personal loan. My banker didn't want the Note attached to the property. So now I just have a promissory note for slightly more than the down payment, which will balloon in 5 years. Grandpa is happy, I'm happy. And in the meantime he told me if I found a good BRRRR or flip he wants to do more! Thanks for your advice! Even though it won't be used directly in this deal, it will definitely come in handy soon!

So now I have my second property under contract! A duplex, and I’ll have basically $3000 in repairs out of my own pocket!