All Forum Posts by: Jason Green

Single family is pretty easy to move after the fact. I would imagine a multi would be a little harder but I am not an expert. I formed an LLC on legal zoom when I started out and it was the best $500 bucks I ever spent.

It will vary by state and lender but most lenders have a "seasoning period". So you will have to wait sometimes 60 days, maybe more to refinance.

A HELOC is a great way to get some equity out for sure. The issue I ran into on HELOC is that the payment I based on 1.5% of the possible balance. This may be lender specific or federal law, honestly I don't know. For example I had a home worth $300,000 and it was paid for. I wanted to borrow $250,000 on a HELOC. At those numbers the possible payment would have been $3750/month. At that large of a payment, DTI becomes a big factor for most people. You aren't talking about those kinds of numbers but it is certainly something to keep in mind.

On your deal, it doesn't seem like a bad get for your first property. Typically HOA issues steer a lot of investors away from Condo and townhouses but you don't have that issue. If you have a good tenant that wants to stay, by all means, let them stay.

Good Luck

If the seller agrees to it, I don't see where it would matter one way or another. Of course you will hear the "due on sale" clause thrown around but its very rare as long as everything is current.

One thing with a HELOC that I thought of in this case is the original mortgagee could still have the ability to draw money off of the line of credit if the HELOC is setup that way. I don't know if that wild scenario could ever take place but I guess it could. You don't assume the loan but contractually you are responsible for the payment. I would assume if a seller pulled a stunt like I mentioned it would certainly constitute a breach of contract and you wouldn't be on the hook. I am sure stranger things have happened though.

The other question I would have for you is when you say "can I refinance" what timeframe are you talking about. Generally the idea of a "Subject-To" is so that you don't have to mess with the financing in place. But if you are looking to just tie the property up quickly you could always do a subject to for a short term to get your own financing in place.

Bigger pockets podcast is a great place to start

Ted,

There are certainly costs involved in being a realtor. The biggest initial cost for me was simply the cost associated with getting licensed actively. Online classes, license fees, etc. The biggest recurring cost is MLS and Realtor association dues. I am sure it varies wildly by city and state but in my city, you cant be a member of MLS and not be a member or the Association of Realtors. Quarterly dues for both run around $250 bucks.

Again this will vary by state so check with your real estate commission for Wisconsin. In Alabama, to have an active license, it must be held with a brokerage. By doing this, you incure brokerage fees. These can range from very little to very high. It is usually in line with the commission split with your broker. For example, a 90/10 split with a broker would cost you very high monthly fees and only top producers would go this route. A 65/35 split and I know brokerages that charge $80 bucks a month in office fees to hold your license.

For new agents that don't plan to do a lot of business, the Keller Williams franchises are very friendly in terms of monthly outlay in my opinion. You are on a cap rate and you pay very low monthly fees. This model is appealing to part time agents.

If you plan to do any investing at all and you are an agent, you can either negotiate out of the price your commission, if your broker approves or you can simply take a commission. This is assuming your brokers E&O insurance will allow you to represent yourself. Usually it just has to say in the contract that you are a licensed agent purchasing for yourself.

I would say to be a fully active licensed real estate agent, you are going to spend on average about $2500 per year just to be licensed.

Hope that helps.

In my state we have a millage rate based on assessed value. The trick is trusting that the value has been assessed correctly. In Alabama, you can dispute a valuation and if you can back it up, you get your bill lowered.

Based on the worcesterma.gov website, it looks to me like you would simply search by address and find the assessed value. Divide by $1000 then multiply by $20.61 to get your tax numbers.

http://www.worcesterma.gov/e-services/search-public-records/property-values

FYI, Zillow is to real estate what WebMD is to the medical world. It can rarely be trusted.

@Christopher Telles validates an excellent point that I may have glossed over. When I say these are cash cows, they are. However, to reach that point took these guys I know 3-7 years to realize any sort of decent returns. I would most certainly say it is a long term strategy.

It has been a cash cow for several good investor friends of mine. However, check with your local municipality. In my area, during the boom, the city and county put a moratorium on building any self storage units in the town limits.

If you are in a high end part of town, climate controlled is the way to go. If you are more rural, just regular self storage would be what I would do.

Tax records are the easiest I have found. However, the "owner" shown in the tax records can sometimes take a year or more to update if the property has been sold. If you have access to MLS or an agent who does, they can usually piece together who is the actually owner pretty quickly.

I facebook messaged a guy a few days ago and bought a lot ive been looking at for about 2 years from the tax records. I made the offer via messenger and we wrote up a contract.

It can be a little awkward but just have what you want to say prepared when you call.

Found a home I want to bid on but its coming up for sale this Monday. Anyone have any experience with online title search companies that could turn a search around quickly and accurately. I looked at all the documents online that were filed but that doesn't always tell the whole story.