All Forum Posts by: Ken M.

Hello everyone, my name is Max, and I’m an aspiring real estate investor focusing on bird-dogging and wholesaling. I’m motivated, eager to learn, and looking for a mentor whose insights and expertise can help me grow and scale my business. I deeply value the experience seasoned investors bring and would be happy to provide support through research, sourcing deals, or other tasks in exchange for your guidance.

I would knock on the doors of every local investor I can find and find one to work for to get started. I'd also join the local REIA and make connections.

1 Vote

Raleigh, North Carolina

Quote from @Kyle Carter:

Hello BiggerPockets community!

I would like to learn more about SUB 2 financing.

I know what SUB 2 financing is conceptually. The seller would use this strategy when they don't have a lot of equity in the house. But why would that make them want to use this financing method?

What are the benefits of SUB 2 financing a property? For me as well as the seller.

First, you have to define Sub to financing.

Do you mean the reckless kind where you overpay for a property, take over the financing and borrow from others to cover closing costs and holding costs when you have no money, no credit, no income, no reserves and can't tell a warranty deed from a deed of trust and you close on the kitchen counter

or do you mean

buying below market value, already having a nice income, having reserves, using escrow and title, already understanding the due on sale clause, have done a lot of creative purchases and know when to use and when not to use creative finance and how to recover if something goes amiss?

There is a big difference in how those are handled

0 Votes

Quote from @Donald DiBuono:

Hi,

Unique scenario. There is a 2 family we are in talks with acquiring for 200k. The owner is open to seller finance for us. There is a catch - the couple wants to 1031 the funds into their sons next larger project which is TBD.

Our Goal - buy this property with little money out of pocket. Put some money in rehab. When they need the money, we know this property will appraise for 40% more than we bought it for. We would refinance to essentially be no money out of pocket. The catch - we need to have the deed before we finance. Why is this an issue?

Their Goal - sell us this property seller finance. They make money on interest. We can be flexible when we pay them back. The ISSUE - they want to 1031 the funds.

If they seller finance, we have the deed, but they cant 1031 because they would need to find a property ASAP which they want to avoid.
If we rent to own, they are OK, but we cant refinance because we don't have the deed.

Are there any unique scenarios to help us get the property for little money out of pocket, we have the ability to have the deed and refinance, and the sellers are able to 1031 at their leisure?

Once they exercise seller financing, the property is sold and all 1031 rules apply. 1031 has specific timelines. It isn't meant to be a long process.

You may be able to do a lease option instead, that allows them to find a property but that does not transfer title to your name.

1 Vote

Albany, New York

Quote from @Gabriella Swan:

Hello! I am new to real estate and looking for a mentor. I currently am a property manager for a few multifamily properties looking to start investing for myself. I am also looking for guidance on being an agent as I have a few friends and family members looking to buy within the next year. Please feel free to reach out if you are willing to help!

You should state what you want to accomplish and why, so people with those skills might take an interest.

0 Votes

Quote from @Michael Challenger:

Hey y'all,

I have approached a point where I have built up more confidence in performing my first house flip in the Charlotte metro region. I currently am a resident here (so distance is non-factor) and I possess some handy skills that could save renovation costs (besides HVAC, structural issues, plumbing, electrical work). I have been exploring viable options as well as doing my due diligence, reading, and research to come into a deal as prepared as possible.

Currently, a hurdle that I am looking to get over is securing lending that will also have renovation costs built into the actual loan amount. I understand that with traditional mortgages, it is unlikely to receive lending that incorporates speculative renovation costs. Additionally, I understand the risks associated with obtaining hard cash and working with hard money lenders, including higher interest rates due to the short term nature of the loan as well as the risk involved. However, I believe that this would be my most viable option for securing lending. I would be happy to discuss structure and feasibility as well as insight into my personal finances/personal stake into a deal with serious lenders/prospects.

Even if you are reading this post and are not a lender but have valuable insight or experience with flips in Charlotte's market, please don't hesitate reaching out. Any information you are able to pass off is good information to me!

I am looking to connect with any experienced home flippers & Lenders in the Charlotte area, or even just build my network. I am eager to learn the in's and out's of Charlotte residential real estate market as well as gain some experience flipping houses while turning a healthy profit for myself and investors.

May I recommend that you find a local businessman/dentist/doctor to fund your flips? That will serve you far better.

1 Vote

Charlotte, North Carolina

Quote from @Tyler Kesling:

I have a goal of purchasing my first property July 2025. I'd love for that to be at least 20+ units and I'm curious how some of you financed your first deals? Lessons learned? My current goal is to create enough cash flow over the next 3-5 years that I can quit my W2.

Some options I'm running in the background of my brain while still learning the basics would be, in no particular order.

A- HELOC.

B- Sell my current house and either rent short term to get some momentum or use part of my equity to put down on a new home and the rest into a rental.

C- Raise the funds from friends and family.

D- Just use cash from savings and start small.

E- Pull from 401K and really take a risk on my returns. (Cash Flow is my goal)

Pros/cons, other creative ideas?

20 Units, eh. I'd suggest you volunteer at a day care center for a month and see if you like taking care of/dealing with people first. ;-)

0 Votes

Quote from @Jennifer Gill:

I'm really getting tired of people calling me when my number is on the DNC. All brokers, realtors, wholesalers, etc... you need to check this list before you call anyone!!!! It is illegal (see below article). I realize people are trying to make a living, but anyone who cold calls me is the last person I'd use for any transaction (plus I have people for that!).

https://www.redx.com/blog/agents-dnc-list-tcpa-guide/

For all of those who own property and are sick of these calls - report phone numbers here. I am reporting every one of them now as this has gone on for years and is ridiculous that people don't know how to follow the law! Unfortunately, I have to answer unknown phone numbers due to my job role.

https://www.donotcall.gov/report.html

The effective way to stop the calls, include texting STOP to the number. Most automated systems skip over numbers that have had STOP texted to it.

You can also use BLOCK NUMBER on your iPhone. I don't know if Android has this feature.

I have two phones, one for business and one for personal. PureTalk and Patriot mobile use the same equipment as AT&T, T-Mobile and Sprint but charge only $20 a month. I found my second phone on Facebook Marketplace pretty cheaply for $60.

When I get an unrecognized phone or text, I let the call go to voice mail, then I text "Did I just miss your call? How can I help you?" Rarely does someone respond. So, I block the number.

You can put the number into a search engine and sometimes it will tell you if it's a solicitation.

If you answer the phone and there is an uncomfortably long pause before someone talks, it's a machine dialed number and simply hang up and block the number.

I've cut 99% of unwanted calls doing this routine. I rarely have to do any of these now.

0 Votes

Quote from @Allen Masry:

Hi, this is a little strange. I am just planning. It appears I may get 500,000 settlement in a few months. However, I was trying to think what is a good way to go with it. For example, if I do S/P top stocks, I could get around 11%.

but if I did real estate and I have a 800 credit score - could I do real estate and make it work harder doing turn key Multifamily. I do want to thank people for taking the time to answer this. What I like about real estate community you all are open about trials and tribulations. When you talk to finance people they act like they are lawyers. It is hard to figure out if I will make anything but VERY clear the fees (lol).

Congratulations. I think the first thing to do is find out how much is left over after taxes and fees. Ask your CPA. Second, Don't spend it until the check clears. Third, put the money into an account temporarily for a few months, settle in, buy yourself a gallon of your favorite Ice Cream, pop on the boob tube and watch a couple of good movies. Let the dust settle before you start making major decisions.

0 Votes

Newark, New Jersey

Quote from @Estee Capland:

Hi all, I'm finally ready to purchase my first property. I've been working as an interior designer for many years with investors on fix and flips where they always went over asking price. I'm currently living in Miami, but due to the inflated prices here I believe I'd have to travel outside of state to find a deal. I'm looking for an affordable city to either fix and flip or renovate and rent out. Any advice on where to look would be greatly appreciated. I also have a lot of Airbnb experience so that's a possibility too. Tia!

In my experience, a successful fix & flip requires visiting the site every other day. If you want to stay in Miami and flip in Georgia for instance, I don't think that is a recipe for success or for stress reduction. ;-)

0 Votes

Quote from @Collin Hays:

I visit fairly often with investors looking at a certain vacation rental property to make an offer on. I am not a realtor, so I cannot give advice as though I am one, but there are some guidelines that I have used personally over the years, with great success. Maybe these will help you, too!

You’ve found the property you like, and the numbers seem to work, but it’s more than you can afford or want to pay. Here is the Collin Hays method of buying the property at what you want to pay:

Don’t ask the seller what their best offer is. They’ve already priced the property. This puts both you and them in an uncomfortable situation, as you are inferring that they didn’t already price it fairly.
Don’t make a list of the flaws of the property and use that to try to talk the seller down. They know they ins and outs of their property, and you bad-mouthing the property isn’t going to going to endear you to the seller. If you want the seller to accept a lower offer, you can’t offend them.
Consider the possibility that the property is already priced quite fairly. I have given asking price several times with no quibble, particularly if I really liked the property and the numbers worked well.
If you really like the place but you feel that it is priced too high for your budget, instead of saying “it’s priced too high” and insulting the seller, simply say “I absolutely love your place; it is exactly what I want, and I’d really like to buy it. It’s just more than I can afford, and I don’t want to offend you with a low offer.” If the seller says, “Oh no, feel free to give us an offer”, then there is your invitation.
Find out what the seller has invested in the property if you can. In many states, this is public information. You can find the most recent sales price for the property on the local tax records website or by doing a quick search on Zillow. If you are trying to buy a $ 1 million home, and they bought it 20 years ago for $250,000, it’s likely they have a whole lot more wiggle room – and less price sensitivity – than someone who paid $1.2 million for it last year. Of course, what they paid isn’t going to take into account the money they have spent on renovations or remodeling, which can be substantial.
Finally, even with a substantial discount, the house may not be worth it. Do your due diligence and make sure the numbers work for you. It may be that it works quite well at the asking price. It may be that the price needs to be substantially less for the numbers to work. You do not owe the seller any explanation on this. They already made their investment using their own reasoning; now it's your turn.

Happy Hunting!

Buying "off market" is allows negotiated and negotiable. Only on the MLS are you restricted to what a seller or agent for the seller have already etched in their mind.

0 Votes

All Forum Posts by: Ken M.

Ken M. has started 52 posts and replied 721 times.

Post: Aspiring Real Estate Investor and Future Developer

Post: Sub 2 Financing

Post: Creative Finance Deal Need Advice!

Post: New to real estate looking for a mentor!

Post: First Time Home Flipper Looking to Connect w Lenders

Post: Funding Your First Deal

Post: Do Not Call List - sick of calls!

Post: what happens to 500k

Post: Advice for first property

Post: Tips for negotiating your real estate deal