All Forum Posts by: Brian Fouts

I would be interested in the durability of these countertops (tile) as well.  Concrete is nice, but too much care.  I vote plywood with plexiglass on it!  

Why not go local? Real Trust IRA is local, works with real estate investors and investors of all types. I have three with them and many of our clients are with them. Owner is great, a real estate attorney, and great customer service.

Welcome, quite a few investors in this area.  Look for gatherings on meetups.com and start reading on BP to gain knowledge and you'll get there.  

Going to need more information and pictures to even venture a guess.  Looking at the photo, it does not even appear to have a roof.  Basically looks like new construction.  

Also, the best resource would be to contact a local contractor for pricing.  They could more accurately give you a ball park as every investor has their own idea of what a rehab should cost.  

Welcome, there are quite a few of us in the area.  Look up meetups.com for local real estate meetings.  Sounds like you have a good plan and have been there before.  

Look forward to meeting you at an event.  

Correct @Curt Smith, there are some "questions" that you have to know if you can and cannot ask directly.  Some you will find out in the course of a conversation.  Can't discriminate either, etc.  

One time, we had a guy looking at a rental home.  During the walk through, we had a good conversation going and he mentioned that his wife and their 5 kids would be moving in.  It was a two bedroom house.  Interesting...

Buyer questions to help qualify them...

What is your price range?

What is  your budget for monthly payments?

Have you owned a home before?

Do you need to sell a home in order to buy a home? 

What is  your time frame, when are you looking to move?  This tells you if they are a motivated buyer.

Do you have a lease currently?  If so, when does it end?

How many are in your family?  Do you have school age children?

Do you rent or own your current home?  Rent amount?

How much can you comfortably afford to put down on a home purchase?

Is there a particular area or location you prefer?

Do many beds, baths, sf do you need?

Is there anyone else that will be part of making a home buying decision?

Are you employed?  If so, where and how long?  Same for the spouse.

How do you communicate best?  Email, phone, etc.

Last, try to understand their main human need.  Certain, uncertainty (variety), significance, or love/connection.  Usually, the best home buyer is a person with certainty and love/connection as their main human needs.  This means security, a viewable future, etc.  People that are uncertainty/variety driven don't like the "tied down" aspect of owning a home, more likely to default or be short term.  Significance driven people make it all about them, buying a home needs to make them feel important.  This all is just my opinion, but knowing how best to communicate with someone as well as know their focus is a good thing.

Last, you need to know your local laws and guidelines as some of the above questions can put you in hot water with local codes or Dodd Frank, etc.  The above questions are examples of ones I, or my partners, have asked depending on our situation.  Being a licensed agent versus lender versus investor can have an impact as to how you ask certain questions.  

Definitely RMLO if owner occupied is your buyer "type."  If you are originating a loan, then you must abide by Dodd Frank.  We use an attorney to draft the loan docs.  If investor, then it would be their track record, bank statement for proof of cash, etc.  Lots of ways.

If Owner Occupied, then background check, employment history, credit report, etc.  You are trying to identify their willingness to pay and their ability to pay.

Also, have they owned a home before, do they currently own, why can't they finance traditionally.  I also want to know where they currently reside and see the condition of that property.  Are they maintaining it or is it trashed because that is how they will treat your property.  

Welcome to the group!  As others have mentioned, be sure to let us know what area of real estate you are interested in.  There are quite a few of us in the area, look up local get togethers on meetup.com and we'll see  you at an event.

If I am looking at the numbers, it is a negative cash flowing rental right off the bat.  Usually a bad way to build a good portfolio.

Now, you mention something about Owner Occupier (Occupied?).  Are you planning on buying, living in one part of the duplex, and renting out the other?  Or airbnb the other side?  That could be an option depending on the numbers.  Reduce your current living expenses by having someone else (renter) chip in.  Many people get started in real estate by purchasing multiple bedroom properties, living in them, and then renting out to friends or roommates.