All Forum Posts by: James Beam

Looking at a couple 2/1 duplexes in a B area.   Asking price is $139k which I feel is very overpriced.    Here's the deal.   The seller has had the same tenants since 2009 and 2012 and has not upped their rent.   They are only paying $440/$445 for a grand total of $885.00.  He has never raised the rent in 15+ years because he did not want to deal with new tenants (ridiculous).   Of course, the rents now should be at least $600-$700 each.      Tenant pays utilities.

I expressed to the selling agent that the seller is trying to get a price that is equivalent to the tenants paying $700+ each for the property, cashing out, and having a new buyer to deal with 15+ year tenants in current leases who are paying very below market rent.      

The units are all brick, very nicely maintained and have newer roofs, hot water heaters, and furnaces.  They back up to a large green space in the back.   

Based on all the hassle of raising rents on these tenants at their lease renewal and dealing with possible new tenant screening (although I'm not sure where they would move to at that price),  what would you offer?     

Hey @Clay Smith, can you send me a list of your other properties.  

Thanks for all the replies.   I am looking to get a license for my own investments as well as for other investors that I know looking for properies.   I am going to be selling my home in the next couple of years and buying a new one which will be roughly $900,000 total.   The commission split on that will pay all my fees for years even if I do nothing else although I do not see that as being the case.  

Jared,

Thanks for the info.   I will look up Cooke Real Estate School.   Any idea what the name of the book you purchased off Amazon?  After looking, it would appear to be the 2017 Kentucky PSI Exam Prep.     Who proctored your test after you completed the course before taking the state test?

Thanks

Hello everyone,

I am interested in getting my license in KY. Can anyone recommend me to the best places to take the Pre-license classes? After getting a license, what enables me to access the MLS and get the hot sheets etc? Is that membership dues in GLAR or is it through the broker that I go with?

Thanks

Jay   

Anyone have any suggestions for the best place to post your rentals?   I have both residential and some commercials and curious?    I currently throw some up on craigslist but looking for other ideas.  Thanks!

@Allie Bloyd That's great! Congrats on your first deal! I noticed you said that you bought a HUD home. When you structured the all cash deal, close in 10 days, I'm looking to throw out an offer on a HUD home as well and was curious if you put any contingencies in the offer at all or was it simply cash AS IS... What about a contingency for a clear title?

My deal is going to be a buy and hold.   Rents in the area are about $850 and I should be all in at $65k after repairs to get it rentable.

I don't have any experience in buying at a sheriff sale and have a lot of questions myself. One thing I did was to attend just to observe the process. You may want to try and attend a couple while you are learning. I'm planning on going to the next couple in my area as well! -jb

HI Everyone!

I have attended a couple of sales in the past (2-3 years ago) to observe and found it very interesting.  I noticed that In January of this year, they changed some of the rules and I had some questions if anyone knows...  They now require a 10% payment immediately that can be paid by check (I believe) and must have a purchaser's bond for 90% + interest of the remaining bid.   They say you must come down at least a day and advance to show the proof of the surety bond.... Does anyone know what I am actually supposed to bring down there to get the purchaser's bond and able to bid on a property(s)?  

The language is unclear to me and I was hoping someone may have done it before...  I have both cash for the 90% as well as equity in properties as well...

Thanks

Hi @Reece O. 

In Kentucky, it costs $40 to file your Articles of Organization with the SOS as well as $10/yr to file your annual report with the State.  It takes all of 5 minutes to fill out the online form to do it.

Also, even if there is no activity at all, the state has a minimum organization tax for LLCs (and Corporations) that is $175 regardless if you do any business or not.  

Other than that, I don't believe there are any other fees that you would have to pay.