All Forum Posts by: Karen Schimpf

@David B.

It is easier to manage a property in the same area but it's not impossible.  Just make sure that the property cash flows with the cost of a property manager.  And also understand that you will be managing the property manager to evict tenants in a timely manner...5 days from the due date of rent.

Good Luck,

Hi Heather,

Welcome to BP.  You will find this forum to be very helpful in your adventure as an investor.  Good Luck.

Hi Toni,

Welcome to BP!  You will find a lot of helpful information on this forum for newbies and veterans.

Agree with @David R. bad areas mean more work dealing with tenants, evictions, repairs etc.  As a single mom and working full time, you will need to be buying properties that will not need to be managed daily.

@Drew Denham 

Sometimes the price might be worth the gamble but keep in mind, location....location...location, then what is appealing about the old house, and lastly will the property cash flow after the rehab?  

I had an old mansion located in a historical part of town that was converted into a 6 units.  Spent $350,000 on it and had to rehab it. The mansion had a lot of character and the location was close to a hospital, very hip little shops, bars, restaurants and parks etc. I never placed an add in the paper to rent.  I put a sign out front and I would have an unbelievable amount of people respond to the sign.  The property was a cash cow.

If the house is in a good location and there is something appealing about the old house it might be a good buy.   Make sure you find out what kind of repairs you are going to have to put into the property and then find out what kind of rent you can get out of it.  The bottom line to purchasing a investment property is cash flow.

Good luck.

@Jay C.

I agree with @ Mark Furguson,  a realtor protects the buyer and the seller.  To enter a contract without an a realtor ( or an attorney) could end up costing you way more than you could ever imagine.  

Also there is a difference between a residential realtor and a commercial realtor.  If you ever buy commercial real estate, my recommendation would be to get a commercial realtor. Commercial properties, contract and negotiation are much more complex.  

@Michael Malitz

The states are: Utah, Hawaii ,Nevada, Ohio, Missouri, Mass.

I do have other Blanket Loan lenders that do go into those states.

@ Craig Rismille

Origination is not an upfront cost.  You only pay an origination if the loan closes. I am a broker and my company charges 1% on $500,000 up. Like a realtor, I only get paid for the work I do when the loan closes. 

I am also an investor so I can appreciate having a concern with the cost.  When I look at doing a deal, it comes down to the cost of doing business and if it will take me to a higher level of investing.  I sit down and look at the numbers. Each investor has to determine for themselves if the results (the numbers) out way the cost. If the results do not out way the cost, my recommendation to that investor would be not to do the loan.  You might want to talk to your tax preparer to find out if the origination fees are tax deductible.

Wishing You the Best,

P.S. I specialize in SBA and Alternative Commercial Loans. I help entrepreneurs attain financing for their project. I BRING MONEY FROM AROUND THE COUNTRY TO LOCAL MARKETPLACES INSURING THE MOST LIKELIHOOD OF CLOSING. The key is placing the borrower with the lender that most suits that borrower's strengths. I do it better than anyone. Give me a call today at O:512-650-8630 or C:512-354-5949 to get your loan closed.

@ Paul Sorgi, the minimum loan amount is $500,000.

@ Craig Rismiller

Estimated Upfront Diligence Cost are Typically:
-Around $500 per Single Family Residence  for Valuation & Diligence ( V & D cost are different for 2-4 units and multifamily)
-Around $250 per Guarantor
-Around $1,395 for Underwriting Fee

The estimated upfront quote excludes origination fee, title insurance, borrowers legal counsel and other cost customary paid by borrower.

*Quote is subject to change