All Forum Posts by: Joe Henry

When you are viewing and getting a multi-family unit inspected, from duplex up to 10+ units, how much access to the building do you expect to see? e.g. If there are existing tenants are you able to enter their apartments for the inspection? What are the typical practices, and what would be some red flags to watch out for (e.g. someone trying to hide something from you by denying access)?

@Jeff Bridges, @Mike H., great answers. Thank you.

@Arlan Potter, suppose you think someone is asking fair market value for a property, and it would cash flow even if you paid asking price. Would you start by just offering 80% of that? Is that considered "rude" or just good business?

In many books and articles I'm reading that successful investors buy at a discount. However, these sources don't specify how they get that discount. I'm assuming some of the discounts could be:

1. 1. Property needs sweat equity work, which could be counted as a discount disregarding your own time value.
2. 2. Motivated sellers. You hear of the rare cases when someone wants out fast and is literally willing to knock 20% off the price.

What do you think people mean when they say "only buy at a discount of 20%" and things like that, and are there any ways I'm missing that you can get a discount?

Thanks guys. What do you think about Smyrna and the area between there and Murfreesboro? I looks like that less developed area is slowly filling in from what I saw. Does that sound right from your experience?

Thanks for the info guys. Are you referring to just the downtown areas or do you mean even in the suburbs?

I'm in Nashville for the next couple days to check out the market. I'm looking for SFHs in 100k range, brick if possible, in upcoming B or A areas. What neighborhoods would you recommend looking at?

I'm also just curious about the market in general. How does Nashville grow (direction, zoning, etc)? What are the economic factors? Any new job suppliers coming to town that you know of or building projects? And anything else you think would be helpful to a new investor in the market.

Thanks

@Clay Smith, do you have a link to that meetup?

@Krystian Sosinski, @Daniel Chang, thanks guys. That explains it.

I see a lot of sites saying that to calculate the monthly interest rate on a loan you just divide the annual rate by 12. 

So let's say we have a 100k loan at 5%. The first year your interest payment would be 5k if you pay all at once. But if you divide the 5% by 12 and make monthly payments the total interest for the year is $5116.19...

Is it just accepted that you end up paying more interest than what your rate actually is? Or is my math wrong? Or are these sites just over simplifying things?