All Forum Posts by: Michael Lewis Lee

Hello Zachary!  There are many things to learn but I will try to mention the most important ones.  One of the most important is your knowledge and including the area you choose.  Try to focus on the "hot area" where most of the action is.  Do not worry about the competition.  Since most of your familiarity might be out of your state our country.

Talk to the local experienced ones that you can trust.  That includes city building inspectors and future based associations that are aware of growth areas and employment, population growth,  big employers.  One thing to consider are turnkey companies with a positive experience and knowledge.  Local driving routes are important too.

School districts with good reputations and neighbor improvements should be known as well as their improvements and rental experience as well as average rental rates in your area.  Patience with decisions and follow up is critical.  There's much to know but it is all pretty simple and are many in quantity and local demand are critical and important.

Confidence usually comes along as you learn.  Thank you for your upcoming military experience.  They are one of a few that teach about the importance of having a good team that you can depend on and how important they are on a positive outcome.  Keep that mentality and how importance you are in your actions.

One reason I may know so much is from having a medical problem over 9 years ago and my concern about the full time I've had ever since since I cannot walk, drive, or work.  I'm glad my wife chose to keep me alive even though I have not been able to walk.

I have spent most of that time learning about this including the reading of about 150 books in the last 7 years.  I could tell you more about that time but I'll spare you right now.  One of a biggerpockets guy, named David Greene, wrote a book about working out of town and how to be good at it.

Good luck to you!

Hello Adrien!  I was a licensed real estate broker for about 30 years in Texas as well as construction management.  All in and around in Dallas.  I know a little about some of your concerns and might be able to give you some good advice.  Unfortunately, I have not been able to walk, drive, or work for the last 9 years, since I was 54.  One good thing is that I have been learning full time for the last 7 years.  I've read about 150 books, listened to many podcasts, watched videos, and have read many tips.  All of that was concentrated on real estate investments.

I still feel good that my wife chose to keep me alive.  I have been able to witness our daughter graduate from the University of Arkansas.  She works for a US money printer and they are very busy.  Because of her learning she cleans their water and air.  I have plenty of time to be looked up  and you should feel free to converse with me.

I've been a member here for 5 or 6 years and they can help your learning in many ways depending on your membership level.  Knowledge through education can give you some satisfaction.  I'm glad to hear that you have gotten started and that you enjoy what you do.  That is part of a good solution.

Good luck to you!

Hello again Logan!  A couple of other thoughts.  Commercial property and Hotels are risky right now.  Most commercial properties are more dangerous than Hotels but the previous business, it's density, and location will matter more in the future.  Be careful even if the price seems low.  Do your evaluation based on the most negative situation when considering its value.

Best wishes!

Hello Sam!  There is usually ways to structure a deal.  It depends on who your lender is and what they require.  Also, your add to value has much to do with the loan you get.  I do not have any books to recommend but a subject to property allows the current owner to keep hold of the deed but gives you the control often for a limited time to resell it and then the balance of his price is paid and the new owner gets the deed.

It is usually an owner financed deal and the mortgager is not told To make sure the regular mortgage payments are made on time, you can make them.  The mortgage payment received by them and they typically do not care who it's from and will not enforce the "due on sale" clause.  You typically have to sign a promissary note that gives you control but you are typically limited in time (usually 2 or 3 years) and y'all agree on the future price.

It usually makes your deal more flexible as far as its terms go.  He may limit his maintenance cost or improvements/repairs to be done.  Any physical repairs/improvements might need his approval first.  It typically gives the owner more control but can help you to, like a lower down payment and no credit check.

Good luck to you!

Hello Candace! I have several comments. At least renting may be more persistent than a mortgaged house. Do whatever works. Avoid a HOA . Locate in a growth area. Get owner financing which is usually more flexible. Do "house hacking" which will only take 3 1/2 % down. Get a duplex, triplex, or quad-plex that might reduce or take out any of your rent by the other tenants.

When starting out you may not do what you enjoy.  The better the deal, the easier the financing, usually.  You might find a "cash rich" partner.  It's better to get part of something than nothing.    Show the owner on paper how they will make more.  In income and the spread and hopefully appreciation.  It may require some up front cash to help them decide. 

You could pay them their price on resell.  They can keep the deed until then but you get control of the property.

It would be easier to borrow less.  Who the hell is this guy anyway?  I was a licensed real estate broker and a construction manager for about 30 years.  I grew up in Dallas, Texas.  I know about what it is like to live in a growing City.  In the last about 7 years, I've read about 150 books about real estate investing, sales, and business management.

I've talked to many lender in the last year and they tend to want experience and skin in the game   I have talked to banks, private money lenders, and hard money lenders and they tended to like experience and your cash on hand.  Know that the existing owner will get their total price at closing and a cash buyer really can just close quicker.

Just keep on looking.  Some day you will find a good deal. That 10K is not guaranteed.  Reverse wholesaling might work for you to.  Reverse means that you know what buyers are looking for instead of blind searching. If you want more of my advice this site will help you find me.  

One possible way to get rid of those tenants is to offer them $200 or $300 in cash.  It's never a good solution to allow non-paying tenants.  Offer a price on that property that will cover the cost of eviction.

Good luck to you!

Hello Chris This might seem like the same thing but I know it as a lease option. The owner leases out the property for 2 or three years and the tenant after the lease part has been made, he can buy that place for a predetermined price agreement that is usually an appreciated amount that they both agree on.  The existing owner usually gets a 10% down payment that is non-revocable. he will provide the financing loan on the sale and charges a higher interested because they have already failed at a bank.  They can provide a credit towards the sales amount from the monthly rent.  A very low percentage actually stay and purchase the house so it is usually a damn good deal for the owner through the deposit, the monthly spread on the lease, and maybe on the purchase that is more than their equity at that time, and the spread on the financing which is usually above his loan if it goes this way.  He can just start all over with a new customer.  The lender usually does not enforce the "due on sale" clause as long as they get the full payment that is on time. The lender usually does not enforce "the due on sale" clause when all of their full payments are made on time. The owner's debt is usually paid off during the tenants close on the sale.  That deed is usually handed over at the sell.  There is a few ways you can do this.
It's very negotiable when the owner finances it's very flexible.  Good luck to you!

Hello Megan!  Hiring an inspector is mandatory unless you are very experienced.  I would always avoid what the seller has to say.  Hire an experienced Inspector.  The closing date usually varies.  It depends on several reasons.  The sellers needs, your goals or plan, whether the buyer pays in all cash or is their deal dependent on their financing.  It could take two weeks or two months or more.  There might be nothing you could do with another Agent if he or she has a solid listing or if the buyer can let them go at any time  Each state has it's own realtor laws.  Your contract determines tax payment laws but each state could do that differently.  In Texas the tax due is paid by the seller and/or prorated to the buyer.  In other words if the closing happens on June 30, the seller is charged for 6 months and the buyers pays the other 6 months if December 31st is property tax fiscal year end.

Again the property tax liability is dependent on what the agreement says. It all depends on what you and the seller agreed  to and the type of agreement that you two agreed on.  It might be what the seller wants.  Is he keeping the deed or giving it up.  Tax credits and the use of the.  Is it designated to be  property to be a buy and hold rental or a  buy and sale or a fix and flip.  They are all taxed differently.  The least tax is probably the buy and hold rental.    The Quick Flip or The Fix and Flip are usually held less than the others because they are usually sold within 12 months and are taxed as ordinary income and rentals are called passive income and can use depreciation.  Depending on your relationship he may like or dislike you making any profit on that deal.  You may need to keep that private and discuss any of your commission.  It might be half or less.  Just about everything is negotiable.

Goo luck to you!

Hello Derrick!  one sure to get a good reply is to contact an actual provider.  It might have to do with that property is the state your existing property is in.  From what I have heard is that the new property needs to be more expensive and you have 6 months to do that.  I think each property must have the same use and that your personal residence cannot be used.  The best way to find out is to contact a provider or a qualified Attorney that specializes in that field.

Good luck to you!

  Hello Sean!  There several things I would check out.  First, does the city  approve it now and in the future.  When was it installed and fat material used as an outside shell?  How much it to replacing including any possible upgrades.  The current tank removal plus anything that would bring it up to city code.  I would talk to a head building inspector and/or a head plumbing Inspector and ask what TO watch for and what is typical when it comes up when that making an inspection and the  typical  common problems. 

Hello Sarah!  make sure it does not leak anymore.  You can do anything if you try.  You either want to do it or not. 

Good luck to you!