All Forum Posts by: Josh Stevens

Hey everyone!
If you all have some time, I would really appreciate it if you all could help me with the questions below. I have a few Real Estate agents and Loan Officer acquaintances who are very interested in buying up foreclosures once some come on the market. My question is are real estate agents and loan officers allowed to buy a property that they helped the buyer with or do the banks or real estate brokerages have guidelines that forbid this since they have a conflict of interest? I can’t seem to find anything on this topic, so I’m assuming it may be different with each bank and brokerage. Let me know what you all think. Thank you. 

@Jay Hinrichs

I believe they are doing this because once the lease is up, the tenants have no right to the home. So if you got the first months rent and security deposit, you are only out one month if they don’t pay at all after collection of first months rent and deposit. I would personally rather be out 1 month than 9-10 months if I signed a years lease with them. I was trying to see the cons in this strategy, but really could not think of any besides higher turnover costs. I thought you may have a some good input on the cons that I may not be thinking of.

@Jay Hinrichs

Quick question I think you would know. Do you think 3 month leases with a month to month clause after lease expiration would be a good safeguard during this time to avoid the eviction process all together?

A couple landlords in my area have gone to this strategy, and I can’t really think of too many cons besides higher turnover. No worries if you are not able to answer due to litigation concerns. Just thought with your expertise and experience that you would have a good well thought out opinion on this.

@Steve Morris

Curious on this as well. But from what I have been told from other landlords after lease expires, and the landlord has a month to month clause on his lease, he can choose to not renew. If anyone has any more info on this, I am all ears. Thinking about only doing 3 month leases in the near future with month to month option thereafter to avoid the eviction process all together.

@Greg Scott

I have heard of a few landlords in my area doing 3 month leases then either a renewal of 3 more months or month to month once the 3 months are up. You could just not renew their lease if things get dicey after first month of rent is collected. I am thinking of doing the same on my new leases. If anyone has any cons on this, I am all ears.

Hey there BP!

This is my first post. I would love to get some solid feedback from my fellow investors. If you have a few minutes, drop a comment and let me know what you would do.

My portfolio lender recently sent me an off market deal for about 14 single family homes from one seller. I am interested in buying all 14 homes, but I am struggling with what strategy to use. I am a big believer in BRRRR and have had great success with this strategy. My goal the past year has been to get 95-98% back on all cashout refis. However, all 14 of these homes are in good shape and do not have much value add at all.

The Cashflow is very appealing at the price he is willing to sell them at and they are all well done rehabs. The easiest route would be to put 20% down and call it day. Unfortunately, that would kill my purchasing power and reduce the efficiency of my scaling. I don’t believe that to be a feasible option.

The portfolio lender currently has all 14 homes financed through his branch and has a good idea of the market value of them. His goal is to keep these properties on his books, but 20 percent down is just too steep for my strategy on this many homes even with a decent ROI. If I were to buy all in cash, I may be able to get 85% back in the cashout, since the homes have appreciated since the last evaluation when the seller bought them 4-5 years ago, but that is still a high risk for not much reward. I really don't want to skip out on this deal, but I just can't seem to think of a solid solution. Any suggestions or ideas would be appreciated. Thank you!