All Forum Posts by: Kim Knox

@Josiah Stacy

Are you working with many Agents to locate this purchase?  If you are, I suggest you narrow it down to one, otherwise, no one (smart) will invest time into your goals.  

If you are specific about what you mean by an "investor," an Agent will be more helpful.  What is your goal, how much money do you have to purchase, and to invest in fixing the asset?  Is financing involved or are you a cash investor.  Are you buying to create a portfolio of rentals, or are you fixing to flip?  Are you a developer, are you a contractor, what skills do you have that will aid in your investments?  Will you be completing work yourself or hiring out?  How quickly can you be available to look at an exciting property?    

If an Agent is not asking you questions like this, they are either irresponsible with their time, inexperienced, or just not interested in getting paid.  If you are working with an agent who isn't as excited about money as you are, i suggest you find a different Agent.  =)

@Stephen Schoon I think you might get a lot more attention by an agent if you describe yourself as a regular purchaser(that is how I view you after you describe your goals, your willingness to occupy the house, and your expectations).  I would not pursue an "investor friendly" agent.  You might have notice that a lot of investors target new agents because they are able to abuse their time more easily.   If I were you, I would target an experienced agent, to guide you through making the best use of your money.   

You will be occupying the property, so this can open you up to purchase government owned foreclosures (first look purchases will be available to you). Be sure your heloc is approved and funds available to you at the time of making an offer to purchase. A lot of first look purchases (they give 15 days for owner occupied purchasers to make offers before the sale gets opened up for investors.) You will have a natural advantage on these property purchase types because a typical owner occupant purchaser is not purchasing for cash, more typically they are purchasing with an FHA loan, requiring a home be in good condition.

Will you be taking out a heloc loan on the home you will be purchasing, or is it secured by another property?  

@Stephen Schoon Hi.  If I knew more specifics about your situation, I could be more helpful in determining if something went wrong. Like where is your cash coming from (is it from a pending lawsuit, lol)  and how long do you plan on renting the home out, how much is your cap on spending and is it in alignment with the market?  Are you hiring out for renovations, or completing yourself?  

If you plan on occupying the home, you are (generally) smart to live their for 2 years and get the tax free gain and sell, rather than renting.  Then you can use part of your tax free gain towards the down payment of your next investment and use the rest for renovations.  If you are willing to occupy your investments you have just multiplied your earnings.   If you don't know what I am talking about, let me know.   

You have gotten the investor brush off.   It is like being asked to have a cocktail, but not asked to join for dinner =)  I work with few investors (as do many Brokers), and I don't want to be working with Buyers that are competing for the same thing as my seasoned and faithful investors.  It could be that simple, that the Broker you discussed your needs with recognized a conflict of interest, so enlisted a Broker without investors to compete with.   

I am going to point something out that you may be overlooking.  Although I find this a bit embarrassing that an Agent didn't recognize mold, you don't need an agent to recognize mold (right??).  You need an agent who will drive an hour to show a house to you, be available weekends and weeknights, who will work next to you with no real promise of ever making a deal as you have no experience to share.   Experienced Brokers have investors at every corner.  Everyone wants to make money, and i want to make the most money for the buyer who is loyal, period.  I also answer my phone and texts on nights and weekends, and I want to offer this level of service for clients that make me money.       

My investors often involve me in every transaction they have, even if they have me buy at auction on their behalf and pay me a commission.  Why?  Because I make them money too.  It is a mutually beneficial relationship.  Sometimes they call me and tell me that they are involved in a deal and ask me for an opinion during their inspection period.  This could be a for sale by owner or an action property.  They ask me, knowing they will list it with me.  It is a smart way to do business with a Broker. 

@Stan Furman  First off, no one wins in court, so even if he loses, so do you.  Tenants are increasingly difficult, and increasingly protected by law, especially those that have learned to work the system.    

Give him the required notice that you will be gaining access to your property.  In my area, I have to give 24 hour notice.  Post it on the front door, and take photos of the posted notice with date/time stamp so that you can prove your compliance with local laws for access.    

Indicate that it is for routine maintenance, and bring tools (and/or handyman) to get fixed, indicating an interest in whatever problems he has observed that you can fix.  Send him a text to let him know you have posted formal notice on his front door, another (trackable, provable) way to indicate your good faith of giving proper notice. If he says not a good time, you can either say too bad, or tell him you are glad to work with him and appreciate if he sends you a list of any maintenance issues he would like you to deal with.    

Additionally,If he doesn't provide you a list, he is indicating no existing problems.   At this point, you need to protect yourself in as many ways as possible.  He is either a jerk, or embarrassed. Lets hope for the latter.     

Hi Jared, I think doing BPO's is a great way to really become fluent in local values. REO Agents have to be very good at BPO work as well, so it could mean opportunities for you in that way too. Each company uses its own system. I have a list of BPO companies to sign up with if you would like me to send it. We started doing BPO work because we were trying to get REO work, so we knew we had to be very good at them first.

Hi, I believe a contract to purchase can qualify you as an equitable owner. Your MLS might not allow it, just call a local Broker and ask. They will need to know if you plan to assign the contract, or if the Listing is subject to your closing on the purchase. Each way has independent considerations that come into play.

The fact that the sale is subject to the closing of your purchase contract needs to be disclosed in the MLS to fellow Brokers under confidential remarks. People used to try this on short sales. If this happens to be a short sale contract to purchase, you could be subject to deed restrictions that would disable you to flip for profit. Additionally, assigns would not be approved(generally).

In your situation, if this sale involves the Seller (they see it advertised for whatever price, or if they live at the home and you have to arrange showings), you could be putting yourself in the awkward position of he/she wanting to back out of the contract with you if they know others will pay more for it.   

Whether this is an attractive listing to a Broker will depend on the situation and they will want to review your executed contract to purchase as proof of your equitable interest.     

@David C. I know there was talk about a 4 unit minimum amendment, but I did not see that on the bill. When it was considered an amendment, we were going to create new LLC' for each 4 units. If you out 10 in one LLC, that might not work. You would have two different llcs and the remaining two units either in your name or a third LLC, so they are owned by different entities. At least that was how I interpreted it. I would be glad to see that revision if you think they will be putting it into effect. I saw the 4 unit minimum in a few of the testimonies, but have morn seen it in the written bill, so I assumed it had been dismissed. I also get a little spacey when trying to read this stuff.

@Andrew Syrios  Still hoping for State of Jefferson  =)

@Jeff B.  Perhaps, but if it is month to month, after 6 month rules still apply, so I am thinking 6 month rental.  Plus it might be hard to collect bigger security deposits on month to month, but I totally don't know.  

It just occurred to me that if you have a duplex, you could have the tenants rotate units every 6 months, LOL.  Where there is a problem, there is a solution!     

@Jeff B. Good point, thanks! It indicates a notice of non-renewal can be issued 60 days before the expiration of the lease without cause.  It is a little confusing, because later it indicates the reasons a landlord may terminate after 6 months of occupancy.     

At the completion of the original lease period the landlord is required to offer the tenant a lease renewal for the same term(time period) the existing lease was offered.  The tenant decides whether they are willing to renew, if not. They can either give notice to vacate or continue on a month to month basis.  A landlord cannot require a tenant to sign a new term lease.