All Forum Posts by: Maria Stewart

I am in your EXACT situation. I asked the same questions a few years ago. Here’s what I’m doing. Since real estate is a passion, I became an agent part time. I do around 15-20 deals a year to really learn the business. I’m using my primary income to fund my personal deals (flips and acquire rentals) as well as any commissions. I’m also investing I’m dividend earning (stable) stocks for additional income as well. My goal is to create enough rental income to take care of my bills and reduce debt. My secondary goal is to increase savings substantially. Without guaranteed income, I will need savings if I ever need loans for future investments. Plus, I have to provide my own healthcare once I leave my primary job (don’t forget that). A portion of my rental income also takes care of my retired mom (don’t forget about possible family members that may need your help). There will be a period when the rental income takes care of all my bills while still working the primary job. This is when the savings will see serious growth. Think about it... no bills means you can save the entire six figure salary... Once I have the numbers comfortable for me AND my bills are covered by rental income, I plan to do real estate full time. I will also enjoy the benefit of having years of being an agent under my belt (I’ve learned high $ property owners typically like experienced agents not new ones handling their deals). Real estate market fluctuates. I cannot lose income because of a tight housing market. The rental income should support me if / when the market turns. The savings will provide insurance in case of rental vacancies. And worst case scenario the savings will cover me during my job hunt IF I have to go back to a 9 to 5. Good luck to you. This is a great opportunity if you plan it properly!!!

What types of tools are you using to research properties? Are there any websites that make researching easier or more comprehensive? For example, when looking up tax sales, is there an easy way to find information about all or is it a manual search (one by one)? Do you know of a website(s) that have a lot of good advice, formulas to evaluate buy-hold or buy-flip properties? Any help is appreciated.

I would be happy to help if you have questions or need an agent. Not only do I work with California investors already but I am one myself. Inbox me if you need any assistance!!!

Don't forget to try doing research on your own too. Read my blog to get some tips: Where are all the properties

Maybe it is time to go into research mode and look at alternative options. You may have already thought of some of these, but they are worth repeating:

• http://www.forsalebyowner.com/   - I always check here because some don't advertise well.
• http://tazahomes.com/Search.aspx  - I got a house here on auction (pre-foreclosure). Inventory isn't high so check often.
• http://www.hubzu.com/  - Same as Taza. I got a great deal here as well (another pre-foreclosure).
• http://www.southlaw.com/download/ - This doesn't have Ohio homes but if you were thinking of investing out of state, not a super well known resource
• https://www.homesteps.com/ - foreclosures and short sales
• https://www.homepath.com/ - foreclosures and short sales
• https://www.xome.com/auctions/all - foreclosures and short sales
  
• zillow.com and auction.com (you can search by area for foreclosures or pre-foreclosures)
• Tax Lien Certificate sales (depending on market super competitive. In some cases you end up with 8-18% interest on your money or a house if they don't pay)

For the HARD CORE... There are applications out there that review web activity and produce lists of people who are strongly considering selling homes but haven't listed yet. If you are ready to invest a couple hundred bucks a month on this information, inbox me and I'll send you the information (I am not selling nor promoting the site nor do I receive anything for recommending. I am testing the site out myself - FYI). 

Hope this helps!

Maria

There are a few forums you might want to review to help your knowledge. Here are a few I replied to: 

https://www.biggerpockets.com/forums/311/topics/35...

https://www.biggerpockets.com/forums/49/topics/352...

I would also review this group: 

https://www.biggerpockets.com/forums/12-starting-o...

The only thing I would add (because that was great advice) is to make sure to discuss your expectations up front. A lot of my investors come to me after dealing with an agent that never worked with investors. I have to tell you: being an investor makes you look at properties a lot differently. If this is your goal, you need a like-minded realtor. Otherwise, you may end up doing a lot more work or "teaching" your realtor how to evaluate properties (for flip or rent). 

Agents with investor background can also help you navigate through lending options (i.e. conventional versus hard money), should have access to resources to help you (i.e. contractors, inspectors, etc) and should have some access to foreclosure lists, how to bid on HUD and other lower in properties (if you're ok with renovations), etc.

Also, I would highly recommend looking super closely at their comps and ask how they arrived to their numbers. This is extremely important when evaluating a property. 

Hope this helps!

Maria

For my residential clients, I treat them to maid (cleaning) services. A lot of times they are tired with moving and packing, every one of my clients have used their gift right away and showed GREAT appreciation. Some have used the cleaning services to clean the place they are leaving (especially if they are leaving an apartment to get housing deposits returned) and many right after they finish unpacking.

I haven't been giving gifts for my investors. Honestly, they just want me to find more great deals!!!

Good job asking this question. The first step to discovering the knowledge you seek is to ASK! And don't worry, you won't be naive for long because you seem to be hunting for knowledge which is great!

To your question, I think you have reduced some of the risk by going Owner Occupied. Not many investors solely do that (most have tons of properties all over and some out of state). Here are some other things that could go wrong which may cause failures:

• Unknown necessary repairs (i.e. sewer lines, roof, etc)
• Not having cash reserves to cover vacancies / major repairs
• Uptick of crime / vandalism in neighborhood
• Vandalism of property
• Infestations (pests, other)
• Bad tenants / No tenants / tenant family issue impacting stay (i.e. death, divorce)
• Rezoning of school districts / Loss of accreditation of school district 
• Insufficient Property Management (not addressing tenants concerns, no notification of repairs timely - causing further damage, etc)
• Not following market pricing on rental / raising rent to frequently or too much at once
• Legal issues (i.e. tenants sue for injuries on property, taxation, etc) 

I think you get the idea. The best way is to keep learning and keep cash reserves in case of needed repairs. If your personal HVAC goes out, you may choose to do without until money is saved. Can't do that easily with tenants.

Hope this helps!

Maria

DO you have any real estate agent friends? Can you make one? I would ask them to look at the recently listed leased properties (same size / # of bedrooms) in your area and determine what the rent rates were. Sometimes I notice the general population is doing searches within a certain range. If they are looking for anything $1400 or less, your property won't show up (for example). Also, are you using Zillow and other sites to list your property? I would put it in every free online site I could find. There are MANY!

Another easy route is to hire an agent. They typically want the first month as payment. Seems like a lot, but it may be a bargain versus an empty house on the market.

Hope this helps!

Maria