All Forum Posts by: Leonard Rybak

@Randy Rodenhouse ty.  What if I am out of state and not able to put a lock box on myself?

@Zach L. , would you have to pay the property manager for this phase of the rental. There is no tenant in place until repairs are done, so are the managers working for free with the expectation you will be using them moving forward?

It is a grey area....

Here are two examples that may play out when you provide an escalation clause.

1) Asking price is $170,000k You are aware of other offers.  You offer $120K, but your escalation clause has a max of $160K, The seller has another offer of $150K but chooses to accept your offer because they take into account your escalation clause (They did this without countering your 120K because they knew how high you would bid), and they must provide proof of the other offer.

2) Asking price is $170,000K You are NOT aware of any other offers. You offer $120K, and provide an escalation clause with a max of $160K.  The buyer DOES get to see this!  The buy just rejects your offer and "knows" you are willing to go higher, they counter with 155K with the reason of "because they want to counter"  .

   So I would never use a escalation clause if you know the winner will always be someone that will always out bid you such as a potential owner occupant home buyer, or a more savvy investor (more experience with contractors and pricing)

Usually if you are bidding very similar to other offers, then the seller would usually ask for a "highest and best" offer. In this case escalation clause may have only worked against you.  Just my opinion

Hey there, I would aim for at least 4% ROI with a SFH with todays current market. Hold it long enough and you'll be able refinance and start making more. Better to get your feet wet and start and learn the game, instead of waiting for the market to change and be 10 years behind.

Thank you all!

Hi Guys,

   I am looking for a property to buy in Salisbury, MD.  I decided to go on street view of an address I was interested in.  Every single house on that street has either a "Private Property" or a "No Trespassing" sign in its windows or front door.  Is this a very obvious warning not to purchase a rental on that block due to high crime rates/burglaries/home invasions?  Or am I flawed in my thinking?

Hey Welcome, Good luck.  I would say first off, find a mentor.

2nd , I would have my expectations reset. Expect to make mistakes, have heachaches, and don't expect riches or even cash flow in the beginning. But at least you have an asset. Then you will improve and improve, and eventually wont make as many mistakes.   

Goodluck and stay in the game!

I agree with @Peter Mckernan, get an experience real estate lawyer who specializes in LLC and operating agreements and have him/her draft you a good agreement. It is worth the money spent, because you will have a template you can use for future business partnerships, where you can plug and input different terms and information, and you will be protected , vs using online templates which can leave you not sleeping at night and open to expensive litigation and even bad business breakups

I'm in the same boat as you!

Thru personal experience you can should be able to grasp whether or not the agent knows more than you. If you ever feel you are leading the agent or teaching, then move on. 

Another thing is to see how passionate they are to help you. I never liked an agent I had to constantly hound to find me deals or to update me on information I've asked for numerous times.  It really depends on how busy the agent is as well. If you are not a good judge of people, then I would definitely seek for a few recommendations from people on BP referring you to other agents..