All Forum Posts by: Louise McEwen

@Geoff Husa Thank you for your response! Yes, my concern before pitching to him was also, I didn't want to insult him because of how the market is currently. I am trying to avoid offering higher than market, which seems to be what has happened in the offers I was out bid on already.

I am semi familiar with seller financing. However, subject assignment and selling on a wrap I am unfamiliar with. I would appreciate the knowledge of how these two work!

Yes, my desired boundaries include a small corner of all three: Tempe, Gilbert, and Mesa, and the majority of Chandler.

Excellent, thank you for example, @Greg Scott. I will definitely ignore it! =)

@Greg Scott Thank you for your feedback! Wonderful idea of starting the purchase process early! Also, yes I would definitely still get an inspection.

I read an article that from homelight.com which included this excerpt:

*The actual percentage will vary based on the specifics of your situation. However, setting the price at an amount above 75% of the home’s fair market value is a good ballpark percentage to start at.

If you give your relative a discount of 25% or more off of its fair market value (FMV), you could end up in the crosshairs of the IRS.*

I was referring to the equity in the case, if I buy for $300 but it appraises at $325 that's $25 in equity correct? I may be confused.

Our rental market is as hot as our housing market. I now have a turnkey that I live in gently for a year I should be able to cash flow min $300 and should potentially have less problems cause it is a newly reno'd home. These are my thoughts anyway.

If I drop the agent fees, would you recommend an attorney for both our protection?

Thank you so much for your response!

Hi Everyone,

I am looking to purchase a single family, in Chandler, AZ, and have been out bid a couple of times already. The MLS drops a new address and it's under contract within 24 hours. So I am trying to be creative to avoid over paying for a property. My plan is own for 1-2 years and rent out and buy again. Full disclosure this idea was sparked from reading forums here and Bigger Pocket podcasts. I am a newbie, so may be missing important pieces. Open honest feedback and reality checks are welcome!

Here's the proposal- I have a friend/acquaintance who flips homes. I'm thinking of pitching him a guaranteed buyer (me) and a profit for him. I believe these numbers are close. (again I am open for...that's illegal, can't do that, or dang go get it, girl)

Possible (Hypothetical) Option

$300,000 ARV

Purchase price of home $160,000

Reno/Repairs                    50,000

Single Agent Fees              9,000

Carry Costs                       2,000

Total Investment (Friend) $221,000

I buy for $300,000  his profit 26% return $79,000

We write a contract up that states the agreed upon purchase price and timeline and friend sells it to me off market.

No bidding wars, no GC headaches, turnkey home for me

No unexpected carry costs, marketing, a single agent only fees for friend

I did read that friend can't sell it to me for less than 25% market value which leaves me a potential immediate equity but could be discouraging for him since he could potentially make more from this project. I appreciate you reading my proposal and looking forward to your feedback!

@Mick Hofmann Thank you so much! I appreciate your feedback! I'm going to move forward on it and plan on holding long and turning it into some cash flow! 

@Ben Zimmerman I appreciate you comparing RE to the stock market, that really helped me put it into perspective of buying high! Because of the unknowns no one can really time the market...either stock or RE. Also, very good point on trying to buy on the dip, I love a good bargain and would probably become gridlocked trying to wait for the "bottom" to hit. Thank you so much for your feedback! 

@Melanie Johnston Thank you so much for sharing the data and your input! I am quite excited about launching my portfolio! Also, thank you for the reminder of paying someone else's morgage vs my own. It's the start of something big and new and was experiencing some jitters. I appreciate your feedback!

Hi,

I have been following Bigger Pockets for awhile now, I have been watching the market for a little over a year, and am ready to own again. I have been a renter for the last 10 years and my current landlord is doing a rent increase by 15%. I am in Phoenix metro area and we are selling for top dollar right now which is a bit of a deterrent but also have seen don't wait to buy the market, buy the market and wait. My goal is to buy and live in the property for a year and then rent it out and buy a second and repeat. I'm a bit afraid of buying so high, even potentially at a peak. I am very open for suggestions, encouragement, voice of reason and flat out honest feedback!