All Forum Posts by: Jeff Meachen

Thank you for your replies and suggestions. Sorry for the delay with a response, I guess I didn't have my alerts set up for replies to my post. 

I am seeking a wholesaler or RE agent for some information regarding properties in Eau Claire, WI. Including zip codes 54701, 54703, 54720, 54729, 54739, 54742. I am interested in investing in single, multi-family and manufactured homes. Thank you for your information and time in advance!

We are currently renting a town home and are considering buying it but will not be getting a good deal.  We will pay what the market is running right now though.  But....we just found out in the town home community that we live in a gentleman just passed away in an identical unit.  We are thinking of contacting the family by writing a letter and expressing our condolences and also putting that we are interested in the property.  Does anyone have experience with this type of thing?  If so, any suggestions?

Thanks @Chris Music @Jerry Padilla and @Darrell Shepherd! This is all new to us and we are learning so much. We are not emotionally attached to this deal, so if it doesn't work out no big deal. Lessons learned and on to the next. We have learned plenty without even buying anything! This is all speculation and we wouldn't want to assume anything unless we had hard evidence. Even then there would be nothing to do about it but stomp our feet and feel bad for ourselves. We have submitted our final and best offer. If that doesn't get it, so be it. Thank you again for sharing your thoughts and opnions, we value them all.

We are not 100% sure on this speculation but are thinking one of our potential lenders jumped on our good deal.  This week we made an offer on our first investment property.  It is a foreclosure and has been on the market for a while.  We have been shopping around at local banks to see what the best options are for us.  When we went to a bank earlier this week and talked to a lender he asked about the deal we were making an offer on.  He was really interested in the specifics and said more than once what a good deal it was.  Due to the fact that the condo complex had more than 10% of the units as rentals their lending institution would not be able to do the loan.  We just found out today that another offer is competing with ours.  After talking to our real estate agent, he said he wouldn't be surprised if the lender himself or someone he contacted is going for the property.  When talking to lender's do you share the property information with them?  Should we not have?  Since this is our first deal we are still in the learning stages, but didn't think about having to keep our cards close to our chest when speaking to lenders.

When we were talking with a lender, I brought up the subject of transferring the title to an LLC that we control. He said "just don't miss a payment." I took that as we do not care as long as the money keeps coming in. I'm sure they would rather be paid as to having to go through the process of trying to collect on the loan.

 How would this play out if you were to try and use the equity in the property to purchase another property.  We are banking on our properties being used to purchase others in the future. Anyone have any experience with this? 

Thank you for all the advice. It is very wise to have all in place prior to getting to work. It is hard though to determine who would be the best fit and what our needs are starting out. I think we have a good handle on what we need covered at our current capacity. We are just looking and organizing. I am a DIY kinda guy, but I also know my limits! Thanks again to all for the input!

The importance of a good team is mentioned over and over again.  The reasoning behind it makes total sense.  For a first time investor when is the best time to bring on those team members?  

Our goal is to initially do buy and hold in single or multi-family units. At this point, we have met with a few lenders and secured financing. Also, spoken with an accountant about different tax implications. We have also reached out to a realtor and are set up to receive MLS listings that match our criteria. We have done the initial basics and are ready to move forward. We have branched out to people but not created any official business relationships.

Our next step is setting up our LLC(s). Is it best to do the basic online form, or should we get a lawyer/accountant involved? Do we get a lawyer and accountant on board to make sure everything is set up correctly as we move ahead? The time spent with these individuals is valuable but not cheap. Being able to spend our money wisely is key.

When did you bring people in to create your team?

@Brian H. 

Are you in a hot bunk type set up or individual beds? We will run one with individual beds and try to make it as nice and home like as possible. I understand how valuable word of mouth is with this type of rental setup. I am in no way expecting this to be a passive type of income, but I would like to get as close to that as possible.

@Jay Hinrichs 

I completely agree! I wouldn't try this with any other group of people. It is risky enough with a bunch of pilots or flight attendants.

We have found one location 100 ft from a bus route, that goes to the front door of the airport. I doubt the house will appreciate any more in value as it takes up the whole lot, doesn't have a garage and I don't see a whole lot of appeal, in regards to location, for another family to move in. These are also all things that I hope would go in our favor, if we were to make an offer on the house. We would only be buying this as a cash producer. I anticipate demand for this location based on the amenities such as a grocery store across the street, restaurants within walking distance and it is so close to the bus stop. Three bedroom house should yield 10-12 beds if we want to push it, 200 per month per bed. It fits within the 50% rule and the 2% rule! House is on the market for 129,000. More than we will offer though. I'll keep you posted on how it goes. Thanks for your advice and contributions!

@Steve Babiak and @Account Closed 

Hey, it works! Thanks for the lesson!