All Forum Posts by: Kelly Skeval

@Ryan Austin I'm a huge fan of using local lenders and portfolio loans.  Personally, I've found their products to be better than the large banks in our area.  That said, our local lenders only require 20% down and have extremely competitive interest rates. Are there other local lenders you can chat with? You should absolutely shop around, I've found that the loan products that banks and credit unions will offer vary so much! At the end of your search you should choose whatever product is a better fit for your particular situation. Keeping more cash in your pocket (to further invest with) and lower mortgage payments as stated by @Jaysen Medhurst is usually the goal too!

I work in an area where most of the agents are ethical.  I do hear horror stories from outside of our board that would make me not want to be an agent.  It's unfortunate this career can attract those with poor ethics and it's no wonder we get so much training on it!  I just stick to the basics, I respond to calls, texts and emails almost immediately (they love that), I do what I say what i'm going to do and just follow through. I also send lots of thank you notes, thinking of you notes and thoughtful touches throughout the year.

@Maria Fernandez

There is a lot of valuable information in this thread. I’d also like to add joining a team. Not just any team but a top producers team where you can receive extra mentoring and learn what they did to create success and implement it yourself. You also can use their systems that have come from trial and error. I joined our areas top producing team when I got started and I had access to her systems and processes. Our team also has a transaction coordinator and marketing director that the team leader pays for, something I couldn’t afford as a new agent. I could go on and on about the value of joining a good team.

Be consistent and always provide great customer service. The market is saturated with real estate agents but you’d be surprised how few offer amazing customer service. I’ve built my business on exceptional customer service and have a constant flow of referrals from past clients, family and friends.

Best of luck!

@Brenden Mitchum thank you! It literally changed our lives! Best of luck in your hunt. Not mentioned, I searched for the right place for 2 years!

@Jaysen Medhurst Thank you! I haven’t penciled them out but I’m sure they would have. It definitely made it more appealing that we owned the land “free and clear.” Our mortgage was roughly $1700 and the downstairs apartment rents for $1800/mo. Since we no longer owner occupy it generates quite a bit of income. It also rents very easily because it’s newer and there’s little to no cap ex and repair costs.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $235,000
Cash invested: $25,000

Built to owner occupy the upstairs
duplex
3bed/1 bath up and down

Cost to build $235,000
Current Value $275,000

Each unit rents for $1800/mo

What made you interested in investing in this type of deal?

We needed a bigger home for our family and wanted to continue to live in a duplex where our mortgage was paid by tenants. A vacant lot came with our 2nd income property purchase.

How did you finance this deal?

This deal was financed with a commercial loan (80%)
For the down payment:
We had equity in the land (~$30,000)
We used a home equity loan from our first duplex to fund the rest of the down payment

What was the outcome?

We lived in this duplex for 3 years. Rent from the downstairs apartment paid the entire mortgage and taxes. Now it is a great cash flowing property.

If this is an up and coming area it should continue to build value, correct? I would hold it and take out a HELOC to purchase more properties.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Ithaca.

Purchase price: $165,000
Cash invested: $10,000

2 unit duplex
2 bed/1 bath per unit

This property had a grandfathered variance allowing a small parcel to be subdivided off for a new construction

What made you interested in investing in this type of deal?

This property could be subdivided and built on
It was next door to our current duplex that we occupied
Seller was willing to hold the entire note at 3.5% with only $10,000 down

How did you finance this deal?

Seller held over 90% of the note at an interest rate of 3.5%

How did you add value to the deal?

Brought rents up to market rate
added laundry room

What was the outcome?

subdivided the property and built a duplex on the vacant lot

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $155,000

This was listed as a 6 bedroom 2 bath single family split level. After touring it, we figured out that with some small, inexpensive renovations we could turn the downstairs into a legal 3 bedroom apartment. Upon closing we did just that for around $2,000 we added a wall to separate the two apartments and installed a kitchen in the downstairs.

We rented the downstairs for $1500 including utilities and lived upstairs.

Current value: $260,000

How did you find this deal and how did you negotiate it?

mls and real estate agent

How did you finance this deal?

FHA with seller concessions

How did you add value to the deal?

immediately turning it into a duplex added value
We have renovated over the years

What was the outcome?

Within 2 years we had $40,000 equity.
5 years after purchase we used a home equity loan from this property towards our down payment to build a duplex that we then occupied.
Now 10 years after purchase we have pulled equity again to purchase an 8 unit property
This property is a great cash flowing property that continues to build value every year

Hello. Congrats on getting started in real estate sales. I'm also an agent and I did things similar to Abel.  I also agree that we cannot give gifts for referrals in NYS.  I used social media to spotlight my knowledge and credibility.  Be sure to post, just listed, under contracts and just solds. Share articles from credible sources.  Everyone is on social media use it to showcase yourself as an expert in your field. Definitely start a business page too.