All Forum Posts by: Michael Randle

I know here new SFH construction is way over priced. You cannot find new homes that start under $350k, not counting the land and all the extras. Seeing how the average income for a family here supports a 300-350k house something has to give. And I highly doubt companies are going to start giving out 10% annual raises. I would say most Middle class people want to live in a true SFH. So taking a multi family and fixing it might appeal to them for a time. You are not going to get the long term. And what happens when all the new construction has to lower prices to attract buyers? You then have remodeled to sell to middle class, but they all started moving to homes, and now you have to get working class, that cannot support your rent payments needed for you to make a profit because of all your improvements or refinance. Just playing devils advocate here.

I do have the 25% down saved up and the price of the property is equal to about what single family homes in my local area are going for. I do not *think* financing will be an issue. It is advertised as off market but the fact I have found it listed on major sites seem to suggest other wise. Another thing that makes me cautious. I wanted to hold off on heading to a bank to get finance because 1) I do not have the hard numbers on the property to give them. 2) the property and area fit my criteria but it isn't the only place in the country I am looking in my search. I will reach out to the person I have been speaking to and get a feel for where he falls into this, seller, agent, broker etc. Thanks for the info! Any more tips or tricks are helpful.

Hello, So I found a small multi family property I would be interested in pursuing more. Numbers I have been able to gather from public data sources make the property seem like a very good investment, almost too good so that is a red flag for me. The property on the surface has everything I am looking for and fix comfortably into my risk tolerance and budget. The two downsides is it isn't local and it seems to good to be true. I would like to dig in more into the deal but I am assuming I would need to be pre-approved commercial loan, contingency offer, get with a local agent etc etc. Or is this not the case? I guess my question is since I have identified a property I like, and run the preliminary numbers, what is the next step? What do I have to do to not look like a tire kicker and someone who is truly interested in moving forward? Thanks

Probably a hard money lender. But information on either of those options would be something I would like to learn more about. I assume hard money has to have some sort of accreditation and private money is more "friend to friend".

So we all know what a hard money lender is. But the question I have is how do you become one? Does it require any sort of state or federal accreditation? Do you need to have a certain amount of start up working capital? I find it hard to believe it is as easy as siting in the back of a REIA with a trench coat offering stacks of 100 dollar bills to everyone passing and breaking knee caps when they do not pay up. If anyone has the short answers that would be good. But if anyone can point to a book, that would be amazing. Thanks

For all you new landlords that might run Into this. If a renter brings this up. Do not ask for anything and tell them you will check with your lawyer. Spend the $250 to talk with a disability lawyer, or if you cannot find one a real estate lawyer. Laws are different in each state, and sometimes cities. CYA and do not ask for any documentation from the renter because I know for a fact that asking for paper work might be a violation in and of itself in certain parts of the country.

Hello! I guess the question would be is 40k really enough to be a hard money lender. And do you have the experience or money to be educated in the hard money field to collect if defaulted and all the legal details that go into even an easy successful deal. I would be interested in what your thought process is because I was going to put 40k down on my first rental property here shortly. I never considered hard money lending because I would assume someone would want in the hundreds of thousands from one lender to do a total project.

I would like to know how they are doing also. Plus are you local up in ND or an out of area investor?

I was told if you go FHA without 20% down upfront you have to carry PMI over the life of the loan also. And like @Sean Lauber said you would have to refinance to get rid of it :/

I have very limited experience in real estate investing and none in private lending. So take what I say with a grain of salt. But from an in-educated stand point it sounds like a scam. Very least fishy. But good news! Some African Prince died and I can have his money since I am a long lost family member. I just have to pay the taxes up front, not at the end of the year like normal.