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All Forum Posts by: Malcolm Lawson

Malcolm Lawson has started 16 posts and replied 107 times.

Post: Newbie from Prince George's County, Maryland

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

Welcome, David! I have never wholesaled my self, but my perception is it's pretty challenging.  One of the easiest ways to get into rentals is to add a rental unit to your primary residence or to purchase a home as a primary residence and then move out and turn it into a rental keeping your low-interest rate. This method may require you to move into another rental yourself as many lenders need you to have a tenant renting your home for at least a year before they will count that income to offset your mortgage payment so you can qualify for a new mortgage.  This is just one strategy to use.  Do you currently own a primary residence? 

Post: Best way to find new clients on BP

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

I was curious what other agents are doing to find clients on BP and wanted to share my strategy as well.  

I set keyword alerts for locations near me I cover.  When I see someone post who I think I can help out, I provide some sort of value in the comment section and then send them a PM asking if they need a realtor.  I have built a few good relationships on here with this strategy and have received one primary residence purchase and sale in the last year using this method.

Anyone else know any good strategies? 

Post: Maryland Realtor taking on new clients

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

I am a Maryland Realtor and am taking on new clients.  I handle primary residence and rental purchases and sales.  I am an 11 year Air Force Veteran and work with a lot of Military and veterans in the Maryland area.  If you are in need of an honest Real Estate Agent, let's talk!

Facebook

https://business.facebook.com/MalcolmLawsonREALTOR...

Youtube

https://www.youtube.com/channel/UCKCXzw4V62g44ExQW...

[email protected]

www.HomesByMalcolm.com

Post: Brokerage Southern Maryland

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

Hey @Keenan Winfree , I am with Keller Williams and really happy with them.  They have been ranked #1 in training out of all the real estate brokerages.  Have you ever read any of Gary Keller's books?  The Millionaire Real Estate Agent, The Millionaire Real Estate Investors, The One Thing, FLIP, HOLD?  They are ALL great books I recommend you read.  I'll shoot you a PM and can talk to you more about it.

Post: Baltimore/Fort Meade, MD Tips For Starting Out

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

Hi @Emily Howlett , I can understand what you mean by the numbers don't work.  The reality is that if you purchased at asking price, 95% of homes on the market in AA county won't meet the 1%.  You might have to get creative.  The method I like the most is purchasing a home as your primary residence with the intent to eventually move out and turn it into a rental.  I own a townhome in Arnold which I used this exact method on.  My current rent is $1,900 a month, my mortgage is only $1,300 a month and the home as appreciated from $210k to about $260k in the last 6 years.  The biggest reason why I like this method is that this rental only has a 4.25% interest rate.  If you were to purchase a home as a straight up investment property today you would be looking at 7-8% interest rates.  The interest rates alone can be the difference between a home that has positive cash flow or one that has negative cash flow.

If this is not an option, also keep in mind there thee ways to make a profit from a rental home.  Cashflow, debt paydown and appreciation.  Even if your home does not cashflow very much, you can still make money in the long run by debt paydown and appreciation.  Think of it this way, if you purchase a $300K home and keep a renter in it for 30 years, when you are ready to retire that home will be completely paid off and in all honestie would probably have appreciated to closer to $600K.  

Hope that helped some.

Hey Sam,

I am apart of Keller Williams Select Realtors in Annapolis Maryland and love it there. Keller Williams is the way to go!  Have you read any of Gary Keller's books?  The Millionaire Real Estate Agent, The Millionaire Real Estate Investor, HOLD, FLIP, The One Thing?  The guy is a natural born educator and it shows with Keller Williams Realty, there is a big emphasis on education and training.  If you have some professional experience, you can even teach classes to your fellow agents in exchange for reducing the amount of money you owe the brokerage. 

I leave Friday for KW Family Reunion which is held once a year and is 3 days of intense training by industry leaders including Gary Keller himself.  They also hold KW Mega Camp once a year which is 3-5 days intense training as well.

The person you should talk to is the Keller Williams Select Realtors "Team Leader" who is in charge of recruiting.  Do you mind if I connect you two?

Post: Sell or Rent/HELOC in Washington D.C. Suburbs?

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

Hi Tim,

The truth is, not all homes make good rentals. If your property does not cash flow and might even give you a negative cash flow, then I would pull your money out and invest in something that does cash flow and hopefully appreciates.   

Often times renting out your primary residence has a major advantage because you get to keep your ridiculously low interested rate, I am assuming 4%, compared to purchasing a home as an investment property with a 7%-8% interest rate.  The fact that you still won't cash flow even with your current interest rate shows how bad the rental market is for your specific property.  

There is probably too many rentals like your OR there is just no demand for a rental like yours there.  I know in Arlington there are a lot of large luxury condo units you will be competing with.   Because there are so many of them, they can afford to cut their rental prices to compete.   There are literally thousands of condos in Arlington and more and more are still being built.

You also have to ask yourself what your goal is right now.  Are you trying to get consistent passive income in which case cash flow will be your primary goal or are you wanting to keep this as part of your retirement plan and expect it to appreciate next 20 years?  For me personally, I am trying to get to a place where I cash flow $5,000 a month and that dictates how I currently invest.

If you will net $100K after the sale and you can get an investment loan with 80% LTV then you can purchase around a $500K investment property. I would start looking at some potential properties and crunching numbers. I am confident you could find some that will both cashflow positive AND you think will appreciate in value.

I hope this helped, good luck

I live down in Waldorf Maryladn and can say this area is growing fast.  A lot of people live here and work in DC.  We also have a large military community here due to Andrews AFB being just a few miles north.  Pretty wide range of properties here from $700K homes to $200K townhomes.  Might be a good fit for you.  

You should also explore some areas in Calvert County.  I think that will be the next area to see a big population boom because of the easy access to DC along route 4.  Right now, with traffic, it takes just as long to get from DC to Waldorf as it does to take route 4 and get from DC to Calvert County even though Calvert County is further away.

Post: Lose your VA loan ??

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

Hey @Michael Dunn a few of the comments above are not accurate. You can purchase multiple homes using the VA loan as long as they are your primary residence at the time of purchase. PCS'ing does not play a role in this at all and I have never heard anything about having to wait one year. It is all about your "VA Entitlement". This is essentially your loan limit. The standard is $417,000 however in areas with high cost of living, this limit goes up and varies by county. In my county in MD the loan limit is $517,000. The limit actually goes up if you are purchasing a multi-unit. Here is a PDF from the VA's website breaking down the loan limits for this higher cost of living counties. https://www.fhfa.gov/DataTools/Downloads/Documents...

You can have multiple loans out as long as it does not exceed the maximum loan limit for your county.  With my $517K loan limit I was able to purchase a home for $210K then move out and purchase a second home for $240K.  Now a lender typically won't give you a second loan unless you have renters in your first home paying down your initial mortgage.  My lender required 3 months of rental income.  So I moved out, rented out my house and I rented out a townhome my self while house hunting for my second home.  

So fi your loan limit is $417, your goal should be to buy two homes for $200K each. Another thing to point out is just because your max loan limit might be $417k does not mean you will actually qualify for that amount. You will still need a good credit score, debt to income ration and monthly income. Also, you can purchase above your VA loan limit but you will need to pay 25% down on anything above the loan limit. Start talking to a lender about these things and see if they personally have any requirements for renting out your first home and

Post: House has undeeded inlaw suite/addition?

Malcolm LawsonPosted
  • Annapolis, MD
  • Posts 132
  • Votes 52

I agree with @Russell Brazil , the zoning is a concern.  Mayland does not have zoning for multi units in very many places.  I am willing to bet this is labelled an in-law suite because of the zoning.  My understanding is this means you can rent it out while you live there but when you move out you are not supposed to rent it out as two separate units.  I am sure you can find a tenant who is looking for an in-law suite for an elderly relative or younger teenager.