All Forum Posts by: Matthew Morrow

Quote from @Jomar Felix:

Quote from @Matthew Morrow:

Quote from @Jomar Felix:

An agent came to me with a possible deal in Reading, PA , it is a full gut project. with parts of the house needing a rebuild so, a architect will be involved. It's going for 50k last purchased for 25k. Seller is motivated to sell but, at least wants to break even. For what the seller wants, it wont work for my inventors. My MAO can't be no more then 10k for it to make sense. How can I make this deal work for all parties? or do I just let this one go?

Sometimes you have to let them go.  If your MAO is too low for the seller then so be it.  
Have to try and stick with Variables in your control. 

 Yea, I figured as much. It has a lot of potential, positives returns. With my numbers, just sucks I couldn't find a way to make it work. But, thank you for the feed back.  

Yep I hear you.  There’s always good deals like that and even if the end result would be fantastic- it seems like there’s way to many failure points to realistically consider.  

The way we operate and advise our investor clients is that if it’s makes sense with good reserves and conservative estimates - do it.  If there’s any piece that doesn’t line up- sit it out and give it 30 days to see if the property is still Around.  But there are some things time will only hurt and not help.  Gut feelings go a long way.  

Would be glad to chat more if you want. Feel free to reach out. 

The whole reason I got into real estate was to provide generational wealth to pass down to my kids.  
Wanted to start traditional with the single family rental.  Well- first deal was a call of a post card -turned into a 5 unit mixed use that was a slam dunk value add.  Pushed appreciation thru market rents and capital improvements.  Property doubled in value of 2 yrs.  Cash out refi and took proceeds to buy a bunch more places in similar fashion. ❤️

Very market and deal specific. Many people start off and are successful with single family or vacant land . Those are usually easier to negotiate and have sellers less likely to want the stars. 

Use your own contract for sure. Explain that although he may want to use his own- you’re the one who has the exposure and needs protection when finding the end buyer. 

A for sale by owner would run into the same scenario and be expected to use a RE contract with a represented buyer so it would be the same with you. 

Good luck! 

Quote from @Jomar Felix:

An agent came to me with a possible deal in Reading, PA , it is a full gut project. with parts of the house needing a rebuild so, a architect will be involved. It's going for 50k last purchased for 25k. Seller is motivated to sell but, at least wants to break even. For what the seller wants, it wont work for my inventors. My MAO can't be no more then 10k for it to make sense. How can I make this deal work for all parties? or do I just let this one go?

Sometimes you have to let them go.  If your MAO is too low for the seller then so be it.  
Have to try and stick with Variables in your control. 

Quote from @Linda Thomas:

Happy new year to all!!

potential tenant. Rent 1100 per mth. 3300 required to move in. Tenant has good rental history, no prior evictions, been at job for 4 yrs making 60k a year. Doesnt want to move in till 2/1 because he doesnt have the 3300 required to move in. Would you rent to him , this seems like a red flag??

Looking for thoughts.

 This doesn't seem too odd for us. They rental market here in the Lehigh Valley is quite competitive still, but not many people have a ton of $$ laying around. You could stick to your requirements because they don't have the minimum cash required- or wait until they have it to lease. They seem like a well rounded tenant otherwise. 

Quote from @Levi Rounce:

hello i am looking to start out my real estate investment as soon as possible. i have came to the conclusion that i need to pick a market that i want to invest and then the property(that probaly seems obvious). Anyways there are no real a class locations near me. What can i look for in areas around me to chose the best loaction is my gerneral are around me?  The only reason i want to stay somewhat close is to house hack as my first deal. thank you so much for your reply in advance. 

 The Lehigh Valley is a fantastic place to start (many of us did here). You can take online classes or connect with people who will mentor (or both.) 
House hacking can be an extremely good way to get into investing, especially here. There are many opportunities to buy someone with low $ down, put some sweat equity in, and then rent out in the future. We've helped many clients in the area do this. Just always stay open minded, learn as much as you can, and never let someone convince you to buy. Investment real estate and its value- sells itself. 

It surely could be. While im not familiar with the FL market- we've looked into this in PA and watch out for a few things that may play into the equation

-Zoning restrictions

-Required code upgrades with building changes- IE Sprinklers needed to be installed

-Cost of project vs true value added 

Quote from @Scott Mac:

A one time mess up by a kid, or a criminal enterprise(???)

If it's a criminal enterprise, I'd say Door--behind--don't let it hit you in the....

But follow legal procedures in your area.

Look parents here's  a new MacBook, and a some size 6 ladies shoes, and $300 shaver, and a new Dell Monitor and Cat Back Muffler system for a Mustang etc, etc, etc... (and the parents don't know this is happening ????) vs a one time mess up by the kid.

Do they still have reform schools, or is that Juvenal hall, or kids jail or whatever, but this young man will probably be spending some time there soon. In some areas they might even try him as an adult (do they still do that to kids???).

If you have videos, it seems like the Police Department would want to see them.

Good Luck!

Police have the Videos, and the person who was the victim reached out to us directly.
Appointment with our attorney this afternoon to further discuss. Certainly don’t want to ruin a situation for a family when one kid is causing the problems. But we also don’t want to expose Ourselves to any unnecessary liability 

@Nathan Gesner Thanks for this. I completely agree. Don't want to get involved in drama. BUT this is near my home, and the child had been a known issue in recent past. Its a HAP contract and it clearly stipulates in the agreement. Picture attached.

Having them there seems like a liability shall anything else happen and we've been made aware of this.