All Forum Posts by: Michael Hastings

Hi @Greg Davis, that is great news. I know it can be hard to keep up with analyzing a lot of deals, but it is so worth it, to get you looking at properties and getting used to the property prices and rents in different areas. But, keep it up, I have been doing it for almost 3 weeks or so, and I have learned a lot about valuations, expenses, rents and cash flow just from this (I have analyzed about 30 properties for buy-and-hold). I have begun calling Prop. Mgmt companies as well, to ask for information on the potential areas, and they have given a lot of info. You could do the same there (I literally just went to google and typed "property management", and then called and introduced myself as a potential investor of property in XXXX area, and stated that "I wanted to see if you could help me with info on rents for SFH 2/1 or 3/2. tenant screening, etc..")

I am continuing to study for my RE license, looking forward to becoming a Realtor and Investor.  Getting passionate about investing and excited for the opportunities!

@Greg Davis, any luck finding properties to analyze for investment in the KC market?

@Bill Regan, thanks for the information.  Another opportunity in Real Estate that you have enlightened me to.  It is true that there are many ways to earn income doing something on a P/T basis in Real Estate while you are learning.

@Account Closed, thanks for the advise.  While I am studying for my license, I had been toying with creating a business plan to facilitate my transition to a realtor, and part of that idea included doing exactly what you have suggested.  I have a lot of experience with building business plans from my "day job", and bet I could apply it here to do as you say, which is to "create the job" that I want.

I love BP!  Thanks guys!

@Nichole Stohler, thank you for providing this list of part time opportunities available in Real Estate, that can help you gain both experience and some additional money for investing.  I have been scouring the internet to find success stories of part-time realtors and the information is 50%/50% - Many say "yuck" to part time agents, and other offer that you would be a fool not to start your career as an agent unless you start part time (to get a feel for the actual job of lead generation, ensure you can show some success and can feed your family as needed).

What are your thoughts to this dilemma? 

@Joshua Manning, congratulations!  I am studying for my RE license in Colorado, so I know the work you have gone through to make this happen.  I hear that KW has a lot of great training to help get new agents up and running, would be interested in hearing your experience after a few weeks.

@Holly Wooten thanks for the clarification.

I would agree with @David Dachtera here.  Your son's failure to pay the $2000 is being seen as a breach of contract, in which the lease between your son and the landlord acts as the enforceable contract.  However, this contract cannot be completed, as it is impossible for your son to complete the terms of the lease, since the landlord is not allowing him the opportunity to renew the lease within the terms described in the lease.  "Impossibility" is a defense to breach of contract and could mitigate those specific terms of the contract unenforceable.

There should be some indication within the body of the lease, which indicates information and specifics on the $2000 clause that the landlord is trying to apply.  I would find that in the lease.  I would then talk to the landlord and let him know of your impossibility to perform on these terms, based on the landlord not allowing your son to renew his lease, and did not provide ample notice to avoid this clause.  See what he says.

I think this situation is crying for attorney review of the lease if the matter continues, ask your son to get a copy and you guys can review it together first, to see what the specific language is.  Find a non-profit attorney (or an attorney who takes these matters pro bono) who can help, many cities and counties have these types of attorneys available for help via their housing authorities.  Start with the local bar association.

Be sure to document and track ALL of your conversations.

@Greg Davis, I have been analyzing deals found here on BP in the marketplace, and ones I find on realtor.com for the KC, MO market, and I can tell you that even being really conservative with my analysis, I have been able to make the numbers work for SFH and 2-3 unit investing in KC. There are a lot of investors on BP that are successful in the KC market (wholesalers, buy/hold investors, agents, flippers, you name it), you can search on the site with just the words "kansas city" and you will find a lot of people you can contact directly in addition to forum and blog post that support my assertions.

Since you are there, you can get into your car after work and drive the areas, which gives you a big advantage over out of town investors like me.

Let me know if I can help with anything further, happy to talk with you.

Thanks @Mike D'Arrigo, the new linked worked and I registered.  Thanks so much for presenting this information, look forward to the review.

Hi @Mike D'Arrigo,

When selecting the link to register, it takes you to a "page not found" error page.  Is the showcase full?  If so, any plans for another?

Hi @Jay Lalik,

I have read this over and would be happy to offer my opinion here.  First off, thank you for your service to this fine country.

In reviewing your statements at the end of your scenario explanation, I think that you asked a question which then answered your original conclusion.

Question in your summary was "What do you successful investors look for in deals?".  Your original conclusion was "I am not sure if it is worth it".  I think successful investors look for gains on their investments which are in line with their investment goals.  For example, I have a big chunk of UPS stock that pays a annual dividend yield of about 3-4%.  Is this a deal?  Many RE investors here would say "no", but the investment matched my goals (retirement income) and risk tolerance at the time.

I will admit that looking at these numbers, they are really tight for a long term rental, and while living there, there is some additional living expense to you to ensure the mortgage and all expenses are paid.  In my prior experience in real estate, before the crash on '07, I had a deal like this, owner-occupied that I took.  It made sense to me at the time because I was investing for equity gain, not long term buy and hold.  I figured that I would ride the wave of exponential equity growth in the early 2000's to get some money to find other buy and hold investments that made better long term investments when I sold the multi-family unit.  

What I did not account for was the management expense of my time to handle these units (as they were not hands off since I was self-managing), vacancies, damage to units and other unexpected capex costs (like a new AC for one unit) that almost took me under financially. I had to borrow against my equity via a HELOC to keep the ship afloat, and when the market decreased the prices and my inflated equity dried up...Well, let's just say it was not pretty.

So I can believe that you have done all your due diligence in outlining the numbers and analyzing the deal, and like you say, since you don't need to do a deal just because you want one, why not pass and continue to look for an investment that works for you financially and personally?

I am almost in the same boat as you as the prices in Denver have climbed dramatically and deals seem as though they are hiding.  But that is just it.  They are hiding and it is my job to learn how to uncover these deals through research, becoming a problem solver and beating a new path to sellers.

Good luck, I hope my words are helpful.