All Forum Posts by: Melissa W.

Hi Micheal,

That's great that you are already thinking about your future at such a young age! 

As you know FHA loans are backed up by the government, so if you end up defaulting on your mortgage payments, the lenders still get paid. With that said, watch Brandon Turner's podcasts. He is a co-host partner of Biggerpockets, and also has a passion for buying multi-family units. You could live in one of the units yourself and rent out the other units. In some cases, the leasee's could pay for your entire mortgage.

 Make sure you understand the 2% rule and the 50% rule to determine that you are doing your calculations correctly.  

Hope that helps.

Good luck.

Melissa

Hello,

Do you have a friend or other family member that can manage your property while you are away at school?  

If not, did you look into using a professional management company?  The one I used only charged me $100 a month, and they their fee directly out of the rent check.

Hope that helps you.

Melissa

Hello,

You could lend the $10,000 to an investor that needs the 20% down payment.  Your money could also be pooled with other private lenders, and when the property is sold, is when you make a return on your money.

Make sure though that it is a solid deal, and before you lend your money out, make sure you research everything you need to know for lower risks.

Good luck.

Melissa

Hi Christopher,

It sounds like your on your way to success.  All the properties I have bought over the years have been creatively financed, and I am not a realtor. I have been told the same thing, and like you I knew there was another way.  I live in an area where realtors are a dime a dozen.  I also have several friends who are realtors. as well as real estate investors.  I found that investment realtors are not afraid to make a low ball offer on a property of I ask them to.  The only thing that can happen is the owner says, "No."  In my experience, all the low ball offers I made, paid off.

Good luck.

Melissa

Hi Joshua,

I have been following some investors in my area and found they are using the 70% rule. I have been researching the area that I want to flip in this week with my realtor. Three of the houses she showed me were already rehabbed. All three houses were in a B class neighborhood. The first house I looked at sold for $175,000, and then after rehab was put back on the market for $253,000. The other two were bought and sold similar to the first house. The FMV in this neighborhood are in the mid $200,000's. If you multiply $253,000 by 70% it equals $177,100. That would have been the maxim price to offer. The investor who picked this property up made a good deal.

The example here is for rehabbing.  If you are buying to hold, then you will use the 2% and 50% rule as well.

I hope that helps you.

Melissa

Hello,

I did some research on this subject.  As an individual, no points will be taken off when you search for your credit scores yourself, but every time a business searches your credit, points will be taken off.  Is their any way you can get a copy of your scores? If so, bring it with you next time you feel you will be in a situation where they may ask.  

Thank you for sharing that information.  It is a warning to some of us that care about keeping our credit scores high.

Does that person have a boss?  I would go into your bank and tell your situation to the person you dealt withs boss.  If they want to keep your business, they most likely will try and help.

Good luck.

Melissa

Hello,

I agree with Fred.  It is possible to get a property with little or no money down.  I bought the property I am living in today with the owner fianancing the down payment.  It was a win win for both of us, because I got a great property at a wholesale price that was in a million dollar neighborhood, and he got an 8% return on his money in less than a year.

Welcome to biggerpockets!

Melissa

Hello,

From my understanding a wholesaler has a list of buyers (investors) with a criteria list.  A wholesaler will do the leg work that maybe an investor does not have time to do.  If the investor can make $30,000 or more on a deal then he doesn't mind paying the wholesaler an assignment fee.

Of course you could do the same.  I bought properties that I found myself, and negotiated directly with the owner of the property to buy.  It can be done, but it is a lot of work.  I did it myself because I live in an expensive area, and a property here that is considered wholesale is in the $300,000's.  It gets risky financially if I don't choose the right property that I can rehab quickly and sell fast.

Hope that helps.

Melissa 

Hello,

With tenants like her is why investors need property managers.  I can understand not hiring one if you live close to your investment property to save money, but she seems like the type of tenant that would drain all your positive energy.

I would find out exactly what you are responsible for legally and send her an email stating, "Landlord Responsibilities." If you don't set boundaries as soon as possible, then your allowing her to control the situation.  It's not your responsibility to fix the tile floor that she cracked.  It's up to her to find a tile contractor to come and fix the damage and pay for it.  

Did she sign a lease agreement? In my lease agreement, I state that once they sign the lease they are accepting all conditions that the condo, or home is in.  Meaning, you fix everything before she signs the lease, then once he or she signs it, then anything that goes wrong from that day forward is there responsibility to take care of; unless it is a major disaster.

In the past I stated to my tenants, "I will not raise your rent if you can take care of minor situations, but if you call me for every little thing, then I will have no choice but to raise the rent." The tenant's I have like this arrangement, because they can count on a fixed rent, they end up staying longer, and they take better care of my property. 

People like her are always trying to get things done for free. If she thinks you may raise her rent because of all the time and maintenance you are spending on her unit, she will think twice about calling you.

Even nice people have to put their foot down sometimes. Lol

Good luck. You seem like a nice landlord.

Melissa

How you remodel a home depends on the area you are investing in.  If it is a higher end neighborhood then go with stainless steel, but if the properties have a lower price point, then you could go with black or white appliances.  They look nice and are budget friendly.  

The rentals I had in Newport Beach rented for $2,650 each.  They were 2 beds, 2 baths.  They were clean, neutral colored walls with black appliances in one unit, and white in the other.  I had no problem keeping them rented.  

I shop for my appliances at discounted stores, or wholesale warehouses.  Pacific Sales usually has the best prices in my area. 

Good luck.

Melissa