All Forum Posts by: Kevin Eldridge

@Vanessa Pham - yes I meant 401k and its with my current employer.  From what I understand I can borrow up to 50% of its current value.  Thanks!

Hi all,

I'm still scouting for my first deal, and I came across a commercial multifamily (7 units + 2 stores) that is out of state (NY, I'm in CA) that looks promising.

The basic numbers are:

Asking price:  300k

Currently leased, bringing in 74k per year

Taxes:  8,600, but assuming 10k.

I'm assuming this needs to be a commercial loan, which brings me to my first road-block - my down payment ability is limited to about 30k (I have an IRA with 60k in it that I can borrow up to 50% of).

What sort of things should I be on the lookout for with this type of property (assuming I'm able to surmount the down-payment problem)?  And any suggestions for getting past the down payment problem?

Thanks all for your input!

-Kevin

Hi all,

I'm starting to work with a broker on a potential deal at $80k, and from reviewing his "Buyer Agreement", I believe I would be on the hook for $1500 as a buyer:

(a)If the property is listed with a real estate company or licensee, BROKER will accept a fee equal to the fee being offered to cooperating agents; but in any event shall be paid not less than 2.500 % of the purchase/option price (or appraised value if an exchange) of the property, or a flat fee of $ 3,500.00 whichever is greater. If such fee, or any portion thereof, is paid by the Seller or the Seller's agent as a convenience of the transaction, then CLIENT will be credited by BROKER for the amount so paid and shall owe any balance due.

In the scenario here, 2.5% of 80k is $2,000, which doesn't meet the minimum $3,500 as stated above.  In this case, I would be on the hook for $1500.

Is this common?

Thanks!

Kevin

Thanks all!  I'm leaning towards local investing in/around LA now.

Hi all,

I've decided to not try out of state investing as my first purchase, so I'm looking at the Los Angeles and surrounding area for a property to "house hack" - ideally 2-4 unit properties. 

It seems like one approach might be to use Homepath, as it seems to be geared towards first-time home buyers and the properties seem to work with FHA financing (which helps me as my down-payment fund is somewhat limited at this point).

Does anyone have any experience with Homepath and any pros/cons of this approach that they can share?

Thanks!

Kevin

Hi all,

My name is Kevin, and this is my first post on BP - seems like an awesome forum!

A brief background about me:  I live in the Los Angeles area, and I current rent (I found a pretty cheap place that is allowing me to store away some cash).  I'm full time employed, and I don't own any property, so I'm just starting out.

I've been poking around on Zillow/Homepath/Trulia, and have found a few places that seem like potential "Buy and Hold" candidates (the numbers check out from a monthly cost to monthly income perspective).  So I'd like to get to the next step and begin having conversations with the real estate agents about these properties, and my goal is to purchase one within the next few months.  I'm focusing outside of Southern California; so far in the St Louis and Chattanooga TN areas.

The first problem I've encountered is that it seems to be tough to get in touch with these agents - so far I've emailed and have sent follow up emails (I have not called yet).  I'm curious if anyone has had this experience and what they have found that works (calling, sending mail, etc).  Any feedback on this specific question or any of the above info would be greatly appreciated!

Thanks!

Kevin