All Forum Posts by: Kyle Dutson

@Tom Parris @Mike Cumbie@Gary Lucido @Shawn Clark

Thank you all for the replies. They are very helpful. But I am afraid I wasn't clear enough with my plan.

My plan is to scour my town looking for potential properties. At which point I shall knock on doors, search titles at courthouse, make phone calls all etc... to find potential sellers. These sellers may not know that they are sellers yet. Or maybe the have been thinking of retiring from landlording. Who knows. I hope to uncover some off the books deals in this manner. Note, tjos os a college town and there are many investors.

Once I find said property, I will negotiate a deal that benefits both myself and the seller. The possibilities are endless here. To purchase this home I will have either negotiate a seller finance or a cash deal in which I have investors ready to loan. Or even a lease option is possible. Point it is all very situation dependent.

Once all this is done. What are my next moves? I know this all seems very ambitious. Also, I am planning on becoming an agent and working for a broker for a while. Investment will be a side gig at first. I believe being an agent full time at first will give me some skin in the game initially and help to meet the players and really learn the business. Also, I will learn the ins and outs pf the game through the training of other realtors/investors.

Hi, in my replies I have tried to mention other members on several occasions but does not seem to work. I write @name ex. @Kyle Dutson

But it does not show asa link in blue. Thus I believe not to mention and that member would not be notified. Note, this is on my android phone and not a computer. 

Thanks for any help

@Gary Lucido

@Mike Cumbie

@Tom Parris

Thank you all for the replies. They are very helpful. But I am afraid I wasn't clear enough with my plan. 

My plan is to scour my town looking for potential properties. At which point I shall knock on doors, search titles at courthouse, make phone calls all to find potential sellers. These sellers may not know that they are sellers yet. Or maybe the have been thinking of retiring from landlording. Who knows. I hope to uncover some off the books deals in this manner.  Note, tjos os a college town and there are many investors. 

Once I find said property, I will negotiate a deal that benefits both myself and the seller. The possibilities are endless here. To purchase this home I will have either negotiate a seller finance or a cash deal in which I have investors ready to loan. Or even a lease option is possible.  Point is it is all very situation dependent. 

Once all this is done. What are my next moves? I know this all seems very ambitious. Also, I am planning on becoming an agent and workong for a broker for a while. Investment will be a side gig at first. I believe being an agent full time at first will give me some skin in the game initially and help to meet the players. Also, I will learn the ins and outs pf the game through the training of other realtors/investors.

As a new and aspiring investor I am curious about the prossess of buying an investment without an agent. First, is this possible? How do I go about drawing up a contract? Will I need anyone else on my team i.e. an attorney? How do I close the deal?

As you can tell I am extremely green. So any help is greatly appreciated. Basically I am just looking for guidance on the process so I can more efficiently facilitate future deals found off the mls.

Thanks for the input all. First possible deal to fall in my lap. will be scouring for more soon. That cal calculator would be very helpful @Dillon Leider

Ok. I understand the long distance problem. But the numbers do check out and should have positive caahflow. Especially with the renos mentioned I expect to get a rent of $1000 and min $800 without. 

So please explain why you think this is a bad deal.

Additionally, yes the distance is why he wants out. But he is not commited to investing. This is just what his parents suggest he do with his bonus money from his military time.

I am open to critiques and want to understand other view points

So, here's the deal. I have a friend who bought a property during the bottom of the housing crash and owns it free and clear. He has recently expressed his frustrations with being a landlord and real estate investor. So, this got me thinking and I approached him with a possible solution to his "problem" so he won't have to commit fraud and "burn it down". 

I told him that I need more info on the property but have gathered that the home is a single family 4 bed 1 bath 1/2 mile from the beach in a good neighborhood and is in decent shape. The location is Gulfport MS and most recently collect a rent of $800 a month, utilities excluded. His purchase price was $60,000 with $40,000 down on a 5 yr term mortgage. I told him I need to know how much he has spent total on this property so I could give him a fair price that would work for the both of us. He is estimating the retail value to be about $110,000 but has not had it appraised.

The other day I gave him 2 tentative offers and he seemed intrigued. I told him (assuming his valuation estimates are correct) I would do a 5yr. lease/option with a price of $85k and fee covering the inspection and appraisal costs and monthly payment covering taxes and insurance. To sweeten the deal I said I would pay 25% of current rent when it was occupied and take over all responsibility for the property. I also, said I would add a carport and an additional bathroom (if plumbing and the lack of major reno allowed). The second offer was a purchase price of $85k with seller financing of 5%. The term being no less than 15 yrs. As incentive to do a longer term loan I said I would toss in 5-20% of profits when sold depending on length of term for the loan. 

The catch is it may be my first deal and it is waaaay out of town. Like 1,400 miles out of town. This aside I think the deal is fair and both parties would benefit. If I can find a decent property manager in the area and do the renos mentioned I think I am sure to make money on the property with not too much headache. Maybe some of course, but this is work/business after all.

What I need help with is process. Say we agree on one of these deals. Who do I contact to get things rolling? I need a contract. Shall I find an attorney that deals with real estate to draft this? Who else will need to be hired for this process? A title company? Excuse my ignorance, but this would be my first deal and it is as you can tell is "creative real estate investing" so I am essentially on my own here. I want to make this as smooth and painless for the seller as possible. He is a good friend and I am a firm believer of good business. I will treat all future sellers/investors with the same respect and put all the leg work on myself.

Second thing I ask of you is your thoughts/opinions and any suggestions.

Thank you for your time and input!

In REI it is all about the numbers, not solely, but it is a dominant aspect. So, if you think that prices are inflated and set to go down you may be right. But it is in direct corelation with the other number mentioned. Intetest rates. Now, depending on how you finance your properties this is key to your strategy. Don't just look at the face/purchace price. If you are financing this you would be stupid not to lock in a low rate. Especially on a long term investment. For example, if you lock in a 4% rate on a $220,000 property on a 30 yr loan you will pay approx. $378,000 by the end. Assuming ofcoarse you pay it as such. Now plug in a relatively cheap rate by historical standards of 6%. The same house is now $474,000. At 6% the house price would have to drop to $175,000 to match our original example.

So, when/if we see rates trend higher, prices should come down. So I suppose you are corect in this sense. But this will only affect those who are short term holders, flippers, and those who are not leveraged. But if you are leveraged at these rates and are holding long. You WILL make money.

It is all about the numbers in the end. And beginning. So one must adjust with the market. You can't predict the future and those who don't take on some risk don't make money. Today's high prices and low interest rates supports a buy and hold strategy.  But in a few years we may see opportunity to do some flips and short term holds. I can't say. 

Another thing to consider is new home construction and baby boomers. It isn't profitable for builders to build low and mid-priced homes right now. So, millennials are stuck buying high priced homes. The supply just isn't there. Lucky for them they get a low interest rate. Also, babyboomers are not moving out of their homes and into smaller places in different locations. Another restriction on supply. Who knows how this will all play out. Don't try and predict it. 

Don't stay out of the game because of fear. Just adjust your strategy. There is opportunity all the time. Right now it is low rates and a high demand for renters. Just make sure the deal works for you and the numbers add up. Tomorrow you may be buying properties dirt cheap. Or maybe not. Either way. I bet if you buy now you will be glad you stayed in the game 10 years from now.

Hi, pretty new here and having issues setting up my profile. First, I input my zip code for location but my profile is showing a location about 60 miles away. I live in Laramie, WY and it shows Mountain Home, WY. Second, I can't figure how to upload a picture on my profile. Thanks for any help