All Forum Posts by: Jennifer Stradtman

@markgliebe it is located off Wilson pike about midway between Nolensville and Franklin North of Hwy 96.  About 3-4 miles North of Arrington inside the 840 loop. If you have interested experienced parties, let me know. As of today it is a handshake but I can get a written agreement if we move forward.  Owner is a retired contractor. 

I live in the greater Nashville, TN area. My neighbor owns over 1,000 acres in the area. He usually sells it off in 20 acre+ tracts at $50k/acre. He has offered to provide the 20 acres to me to build houses to sell and just pay him for the land when it sells. I keep profit from the houses.  

There are many neighborhoods around here that sell for $1mm+.   there are listings nearby for small homes at $300k/ft. On 1 acre lots. 1742 sq. Ft. Sized homes.

This property is Road frontage and there is a 200 ft. Setback requirement. Only 1 house per 5 acres. There is a wide running creek in the property with some hillside. I could likely get 2 houses on this land. 

I’ve never done a new construction home before and have some resources but I surely don’t want to lose a lot of money on an expensive house. I could likely find at least 1 investor to help. 

Should I do it? 

Jennifer 

Thanks for the tops.  I will ask directly.  I have sent customers to both recently who have bought - one with only one house showing at $650k. Not a bad payday for little effort.  But I like your thoughts on being more direct. I’ll try it.  

Since my post I did get one of my agents to refer me to someone on his team who is investor friendly.  I also found another agent and secured a new rental property.  We shall see.  

Buy them another house to rent from you😂

I’d get a translator. Explain your predicament. Work with them on their time frame to relo within reason. Incentivize them to leave (I.e. maybe you identify other comparable options, reference letter, discount in final month rent for delivering it clean and in good repair, rent a moving truck for the day if you have to)  and maybe you’ll have some leave willingly. Maybe you raise Rents to market value and they stay which saves you the expense of finding new tenants. With a rent increase surely someone will go. 

Poor thing.  You bought a unit with loyal tenants😂   It’s hard when you have a big heart. I always get my realtor/leasing agent to do the dirty work because I know I can’t.  Good luck. 

Hi, Bijou. To follow up, it sounds like you want numbers and real options.  Many banks want 20-25% down for investors.  They like 2 years history and they like to see stability in the borrower such as credit history, earnings, time in field, and proof and source of funds.  Keep in mind when you buy a property you have to add closing costs to your loan. Some you may have to pay up front like appraisal fee.  Depending on where you are the price may change but I pay $600 each time.  There are title fees and such - I pay around $1600-1800.  You can roll some closing costs into your loan but not all.  Someone mentioned a low down payment for her first purchase. There are low down payment programs for first time homebuyers but for primary residence only. Maybe your best bet is to find a home you could afford with the 2.5% down payment program and house hack to generate additional funds to help you get to your next purchase.  That may be tough to do in/near NYC due to high property prices. It’s getting tough everywhere.  But, you can find something somewhere. 

Jennifer 

I just made a cash offer two days ago. It’s a hot investment property that will likely have multiple cash offers. It is highly likely that my offer would get overlooked if not a cash offer. I’ll have to have proof of funds. I waived the financing contingency and am accepting as-is.  I am also talking to my banker tomorrow to let her know what I’m doing so she can start working in a refi so I can pull my money back out.  So, I’ll have to use my funds but I’ll get it back on the refi.

Does that help?

If it appraises for more than you’re paying you may be able to get some rolled in,  But, if not, it’s out of pocket. There is that 20% issue for investment properties - at least that’s what my bank requires in equity. 

Find an investor friendly banker now and discuss your goals, let them tell you what they need to help you get there.  Then do what they say. Once you establish a solid relationship and their trust, they will give you what you need within their lending guidelines.  

I did this and it paid off big time. Now when I need a loan, I text my banker, she gives me pre-approval anytime of day/ night and I only  have to send in minimal info since she has everything on file. I can close in two weeks if needed.  You get the point...

So, though painful as it may be to wait, two years of returns are standard. As are bank statements, proof of funds, credit statements, proof of income.  But, take the next year to evaluate properties, save more money, get that tax statement ready and get your banker ready for the avalanche your going to unleash on the market. You’ve got this. It’s a marathon, not a sprint. 

I get calls and texts all the time. I never knew how they got my number.  I usually just respond with a price at the high end of market rates and they go away.  Quickly!