All Forum Posts by: Ben Graves

Hi Alex,

It might be beneficial to work with a buyers agent who is familiar with you local market. In most cases you aren't paying anything because if you go to the listing agent they just get double the commission. When you write an offer with an inspection contingency on an as is your basically just checking to make sure there isn't anything catastrophic. If you find something they won't fix it but you can back out and get your earnest money back. That being said I have seen many times sellers fix something rather then losing out on your offer even on "as is" houses. The timeline on all of these things are put into your offer when you write it and it's important to keep up on the dates. 

Hi Mark,

In my opinion there is rarely on rule that you can apply to all scenarios. I think they usually look good on paper but I evaluate every property on a case by case basis. Probably my best investment broke every rule there is. It didn't have any cash flow and there were a ton of vacant rentals in the neighborhood but it was right by where they were building a mass transit station. Here I am 3 years later and it's gone from $117,000 to around $225 in value. It's never been vacant more than 3 weeks, and I rent it for $1695, and my PITI and property manager come out to $1080. If I would have followed all the "rules" there was no way I would have bought it. My only regret is I didn't buy more home in the area! Always consider all the factors and then just ask yourself if it makes sense

Good luck!

Ben

Hi Taylor,

I don't know about Missouri law specifically, but in most states this would be 100% illegal. You need to keep it in an account separate from anything else . Not the same account that you keep rent or mortgage funds or definitely not any of your own money. In most cases you can't earn any interest on the account and if you do you have to give it to the tenant. Like I said I don't know your state exactly but I'm assuming it's the same.

Good Luck

Ben  

Hi Yossi,

It would depend on a few things. First if the seller is willing to pay a commission to a selling agent and it won't cost you anything. If that's the case than absolutely why wouldn't you.  If they aren't than you would need to ask yourself how comfortable you are with the area and paperwork. Most would recommend that if you don't use an agent you should at least get an attorney which is going to cost you anyway so keep that in mind when determining the cost. Make sure if you do use an agent you find someone who is familiar with both the local market and familiar with FSBOs. I wish I could give you a yes or no answer but there's a lot of variables that come in to play. 

Good Luck

Ben 

Hi Hagay I think many of the people who start LLCs when they are new and don’t have many properties are because of the cool factor. It sounds cool to say I’m the CEO of a corporation that owns real estate. That being said the threshold for when you need one varies. You can get an umbrella policy for a couple hundred dollars a year that will protect you if you’re sued. Obviously once you get a ton of property the umbrella would need to be so big it may no longer make sense. I would also recommend talking to a CPA and seeing if there would be any tax benefits for you and factor that into you decision too. I don’t think there’s a right or wrong answer, it’s whatever you want to do. Good luck Ben

In my experience it’s never been a problem renting to undocumented immigrants. Probably because they know there’s more problems that come with going into a courtroom, so they have always paid rent on time and left the house in great shape. As far as SSN, depending on how long they’ve been here m, there’s quite a few “fake” ones out there. Keep in mind until about 10 years ago they could buy a home and get a mortgage, but a car or open credit cards under a deceased number. Just look at when it was issued. If they’re in their 30s-40s but was issued in 1938 it’s a deceased number. Morally I guess it’s up to you, I figure if I don’t someone else will so what’s the harm. I don’t think there’s anything wrong or bigoted about not renting to them either, just a personal choice.

Thanks for all the advice everyone, I truly appreciate it... I got certified on the install on YouTube (haha). I dropped $3000 yesterday on supplies so I guess I’m committed. I’ll keep you updated and share pictures when I’m done.

Hi Helen,

You can always do online research on any property. In some cases it's as much information as a real estate broker has. I'm not familiar with VA Real Estate at all, but in most cases, as a buyer, it doesn't mean you'll get a better deal. Most cases the seller signs a listing agreement saying they'll pay 6% to get it sold and if the buyer uses an agent they get half. If the buyer doesn't use in agent, in most cases, the listing agent keeps it all. If the agent you're using feels bothered by your questions, get a new agent. If you feel bothered asking them questions, don't it's their job and that's what they are paid for. That being said don't go on a property tour across town with your agent on a property you have no intention of buying, that's just common sense. Lastly don't ever try to by through the listing agent or even ask questions. It's their job, and in most cases the law, to do everything with the sellers best interest in mind.

Hope this helps

Good Luck!

Ben

Hey Pat,

Great question, I am by no means an expert on HUD, but I have done one transaction and try to follow their listings closely to snatch up a deal if I see it. I can say from all my experience that looking for logic in the way they handle their properties is a mistake, there often times isn't any.

McFerran Law in Tacoma has been recommended to me by several different people that I have a lot of respect for and know their stuff. I haven't personally used them, but based on what I've heard I wouldn't hesitate to.