All Forum Posts by: Mansoor Fazel

So I bought this property 6 years ago and had only one tenant. They were great, paid their rent, late fees when applicable. They gave me their 30 day notice last month. When I scheduled a walk through inspection, they moved out before I arrived and mailed me the key! ( bad sign ) So I did a walk through and the place is pretty bad! WAY MORE than the deposit they left me. They gave me their forwarding address, but its in TEXAS. ( this property is in CA ) and I am not even sure if that's real. I don't know what to do now. Should I sell to a wholesaler? Does anyone have a good contractor in the area to refer for repair estimates? I could try and sell but not sure what its worth without fixing up. Would love to hear some advise.

DO you guys think I should sue the previous tenants? worth it?

I am not an attorney or tax specialist but my understanding of the tax benefit is if the property was "owner occupied" for 2 years out of the last 5. I think the best thing to do is sell it under your grandmothers name and then transfer the money after the fact. 

@john warren I do have several properties out of state, but only work with a few brokers. Once you find the relationships, you build on them and it helps to have someone there

Hi @Michael Hastings! To answer your questions, the answers are not as black and white as , I will work with you, or I wont. Its a matter of understanding the background of the person your dealing with and if they have any knowledge or experiences that would benefit you. I ask these questions, and obviously if someone has tons of experience with out of state buyers, then its a plus, but if they don't, its not a mark against them. The thing is that there are tons of realtors out there, and its hard to know which ones are best equipped to help you with your search. I have contacted the listing agents for listings outside of my area as well, but two things I have learned through that: 

1. They are interested in the sale, not you. So if you are trying to do some hard negotiation and another offer comes through, they are inclined to neglect your offer since they see an easy path to a sale ( their ultimate goal )

2. I do like building teams. I get calls and text messages from the agents I have worked with before, and they find me "off market deals" because they know I am someone who will close if he says he will, and will make decisions fast. They can trust that I will do what I say, and I trust they will do what they say. This is because we have built a rapport and a good working relationship. Real estate is all about building teams, relationships, and working with people in a way that will be mutually beneficial ( at least how I do it ) and so I like the idea of having someone in the area that I can turn to without fail.

I hope this helps  

David Faulkner well there are so many things I can say to answer your questions. Let me do my best but I am on my phone on the way to the airport so bare with me. 1. My investment is into multi family property. In the past, when the housing market dips, the rental market will see an increase, so a crash would result in more people who need to rent, since they can't buy ( can't get loans or values for their home have gone down ) 2. He crashes don't affect markets equally. If we see a crash in the tech industry, how bad do you think that will affect Kansas ? Also, because the prices are so low, if we see a 30% dip in prices across America. That means a $300,000 loss in the Bay Area where old mom and pop homes are $1,000,000 or more. But for a home that's only $50k or $100k that's only a $15/30k loss. 3. I own property now in Dallas and Kansas. I have taken time to study the area, the markets the job growth and demographics. I have flown out there and am comfortably familiar with the housing markets there. I wouldn't buy blind just cause everyone else is doing it. I justify my investments by my research. I don't have to live in a community to understand why the prices are what they are 4. Buying in lower markets is a form of loss mitigation. I reduce my risk by buying homes I can offer for rent for as low as $700 a month. When I am paying more than 4-5 times that for my own place. But in the end it's a numbers game. I still cash flow very well in these markets, and that's why I make the investments I make. "Live where you want, but where the numbers make sense" Ultimately, even the crash I expect to happen will only be a blip in the grand scale and as a long term investor I am aware of that. But I want to be in a position to maximize my opportunity based on my research. I hope this helps explain my ideology.

Here is a list of questions I ask when interviewing a realtor. Please add to this list if you have any additional recommendations :

Questions to ask a potential realtor:

20.Have you worked with out of town buyers before?

19.Do you own any rentals yourself? Have you ever before?

18.Do you have a handyman or repair company you could refer me to?

17.Do you ever assist people looking for homes to rent?

16.What are the ratios of buyers to sellers that you deal with?

15.Can you do video walk through, FaceTime, skype sessions?

14.Can you provide a CMA (Comprehensive Market Analysis ) for purchase price & Fair market rents in this area?

13.Are you flexible with your commissions\fees?

12.How long have you been a real estate agent?

11.How many homes have you sold this year?

10.How many homes do you currently have listed?

9.Are homes in your area going at, above, or below listing?

8.Can you provide a list of referrals?

7.Do you have any recommendations for inspection companies?

6.What are some of the perks of working with you over another realtor?

5.Have you done any property management?

4.What’s the demographics like? Job Market? Schools?

3.What are some of the highlights of neighborhood(s) you specialize in?

2.What’s the average cap rate in your area?

• 1.Do you have any experience dealing with investment properties?

Here is a list of questions I ask when interviewing a realtor. Please add to this list if you have any additional recommendations :

Questions to ask a potential realtor:

20.Have you worked with out of town buyers before?

19.Do you own any rentals yourself? Have you ever before?

18.Do you have a handyman or repair company you could refer me to?

17.Do you ever assist people looking for homes to rent?

16.What are the ratios of buyers to sellers that you deal with?

15.Can you do video walk through, FaceTime, skype sessions?

14.Can you provide a CMA (Comprehensive Market Analysis ) for purchase price & Fair market rents in this area?

13.Are you flexible with your commissions\fees?

12.How long have you been a real estate agent?

11.How many homes have you sold this year?

10.How many homes do you currently have listed?

9.Are homes in your area going at, above, or below listing?

8.Can you provide a list of referrals?

7.Do you have any recommendations for inspection companies?

6.What are some of the perks of working with you over another realtor?

5.Have you done any property management?

4.What’s the demographics like? Job Market? Schools?

3.What are some of the highlights of neighborhood(s) you specialize in?

2.What’s the average cap rate in your area?

• 1.Do you have any experience dealing with investment properties?

Congrats friend! That's an awesome story. I too come from a background of Insurance sales, for the past 10 years ( since I was 23 ) and so far own 10 units. But I had a few other hurdles, marriage, 5 kids, you know... the usual. But I am very happy for you! I am looking for my first large multi-unit now.

SOME MARKETS I HAVE ALREADY CONSIDERED INCLUDE:

BOISE, IDAHO

CLEVELAND, OHIO

KANSAS CITY, MO

DALLAS METRO

Hey everyone!

So I am in an exciting part of my real estate journey. I am about to sell my first property. I own over 10 doors, but have never sold one before. I have one that has appreciated substantially over the last 2 years and feel that its time to sell since I don't feel that market has much more room to grow and personally expect a crash ( in California ).  I am 1031 exchanging to a new property, but need to locate one. I have my "team" looking in the markets that I am already in, but I am sure there are other markets where there are great opportunities that I could be missing out on. I would love to hear from any of the experienced investors who are finding cash flowing properties in the multi family \ apartment arena. What markets are you buying in? What kind of returns do you expect on these deals ? Are you buying off market? Any advice on how to find the best deal is greatly appreciated.

Also, this is my first apartment purchase, so ANY advice is greatly appreaciated. Cant wait to hear from you guys! Thanks!