All Forum Posts by: Brant Richardson

Solid! Are you interested in out of state investing or were you living in TN?

If you can find the right property then buying in cash and refinancing 6 months later can work out quite well. If it has a after repair value of 100k, you get it for 60k and give it a 10k rehab. Most cash out refinances will let you finance 75% of the value out, so 75k. You spend the extra 5K on closing costs. You end up with all of your money back to do it again or pay back your original loan. As long as the property will cash flow with a 75k loan you are golden. Finding that property and estimating the rehab accurately are not easy tasks though.

Maybe a non compete agreement for a specific length of time, like 6 months.
Search the internet for real estate investment clubs/meetings/associations in your area and go to them to find mentors.

I have had the same experience. There is no incentive for them to take the risk of saying it is worth more. The HUD I bought in January was for 52K, appraiser actually did put it up to 60k (better than others I have dealt with which are within 2k) but ARV should be 85-90k. I'm hoping when it comes time for a cash out refinance they change their tune.

No credit, new job and a small down payment isn't a real strong starting position as far as lenders are concerened. You want to buy a duplex as soon as you can, as others have said. In the mean time start working on your credit score. Take out a small loan on something, make nice on time payments and have it almost paid back about the time you are ready to buy your property. Pay down any credit card or other debts. Save every penny you can for the next year, scrimp on everything, consider having a room mate, try keeping a money journal and writing down every dime you spend (beleive me its revealing), if your wife is not working get her out there. When you're sitting in your new duplex you'll be laughing at 2014. Look into FHA loans or buying a Homepath property which allow a 5% downpayment.

High property tax is going to hurt your monthly cash flow on a buy and hold. For flipping it will add to your holding costs a little but for a good flip carried out in a timely manner it should not hold you back. You need something much better than "fairly priced" for a successful flip though.

Good points. I didn't think about proactive stuff to make the renewal happen or any substantial work going into the renewal.

Matt,
I'm guilty. I don't hesitate to tell people to stay away from the expensive seminars even though I don't know anything about the seminar. The people I'm telling this too are generally newbies who are not aware how prevalent the guru scam is. They have a lot to learn and need to get the basic big picture information. At a minimum, they need to read several books and spend a few months studying. They are led to believe they can learn what they need to know over a weekend if they pay enough, fast track to getting rich.

Once they have built a solid foundation, then they can start seeking specific niche knowledge that would be worth paying an expert for.

I noticed the lease renewal fee while reviewing the contract before signing, nothing hidden or shady about it. I just wasn't sure if it was typical.

He charges 75% of a months rent for a new tenant while a lot of companies charge 100%. So after two years I'm still only paying as much as a lot of people pay the first year even if they don't have a renewal fee.

Management fees, new tenant fees, service/repair fees... they all make sense to me. But a fee to renew the lease for a tenant wanting to stay another year does not. To me, if the tenant wants to stay, that just means the property manager did a good job selecting the tenant and deserved to receive the new tenant fee I already paid.

I know I need to get on the phone and start calling other PM's in the area to get an idea if this is typical of my market but I thought I would ask here on BP. Is a renewal fee typical? If so, what is the fee? My guy is asking 25% of a months rent.