All Forum Posts by: Mike Sattem

Hello,

I know in some states you have to disclose that type of incident if a tenant inquires (not in Oregon where I live) but I have run into very few people who have ever asked, so I assume you won't have an issue with it. People's memories are short, and very few, if any will have ever known the address of the incident anyway.

Hey @Mark Stone,

One more quick thought, as BRRR is my bread and butter. @Brendan R. is right that you are looking at a House Hack rather than a BRRR. Typically, BRRR is more easily done on a vacant property, as you can get it and get it rehabbed more expeditiously; and it also lends itself more to properties purchased in foreclosure than traditional sales.

I think your numbers are fine for a first deal (I lose $40 a month on my first deal, and after 7 years I still refuse to sell it because I'm just that stubborn). Kick out the crap tenants, fix the unit, and re-fi owner occupied. Then you can start looking for new opportunities. You are on the right track.

@Jay Hinrichs,

Only place with a 4 year college, 3 lumber mills, and a walmart for 200 miles!

@Brandon Turner, that's Real Rural, not just down the road from Seattle Rural.

Hey @Jay Hinrichs,

PREACH IT BROTHER!!

@Cam Jimmy,

In Oregon we have brokers (called agents in some states), which is the initial level of licensing. You will need a head Principal Broker (just called a broker in states which use the term agents) to assign your license to. I got into investing, and almost immediately thereafter got my brokers license, and then after 3 years my principal brokers license so I could open my own brokerage if I wanted. My original Principle Broker knew that I was an investor and worked out a friendly commission split for me, even allowing me to purchase one property per year and have no split whatsoever so that I would apply this commission towards the purchase. 

I buy about half of my deals through the MLS, but they are almost exclusively done the day the deal comes available, because the initial listing price of the home was below market for different reasons. Once a home sits on the MLS the possibility of getting a great deal diminishes pretty quickly. I am a much bigger fan of direct mailings that have by far netted me better deals, because I can work directly with the seller on establishing value, instead of letting the market decide.

Check out Extreme Ownership by Jocko Willink.

It's a real butt kicker for the "everyone else's fault" mentaility

https://www.amazon.com/Extreme-Ownership-U-S-Navy-SEALs/dp/1250067057/ref=sr_1_1?s=books&ie=UTF8&qid=1468007266&sr=1-1&keywords=complete+ownership

@Cam Jimmy,

I agree with @Account Closed. Remember that agents only get paid when they actually sell something. As a Principal Broker I have people call me every day to look at cheap properties which they never write an offer on, or write a ridiculously low offer on that I know will not get accepted. How do I know they won't get accepted? Easy. Because the bank that has the foreclosure listing has the home on a price drop schedule, meaning that every so often, the price of the home will automatically drop until an offer comes in at the new acceptable price. This is the banks way of not having to negotiate on hundreds if not thousands of offers that come in daily. Either it meets, or is very close to the listed price, or they wait until they get one that is.

Also remember that if it is listed on the MLS, even if it is distressed you won't be buying it for 80% of value. You will be buying it at value, because the current market said the home should sell for what you bought it for, aka, value. On occasion you can get a great deal through the MLS, but that will typically be with a home that is listed at below current market rates, and will be bought immediately.

The most important thing to remember is that banks don't think emotionally. They have systematized the foreclosure selling process due to the large inventory they have to manage. Either your offer meets their acceptable criteria, or it does not, and your local Realtor will know what banks in the area will and won't accept. They are professionals in their field; don't get me wrong, I work with a lot of dummies, but if they won't an offer, that means they know they won't get paid, which should be a good sign to you that your offer will most likely not get accepted.

Get your license so you can represent yourself and also collect a chunk of the commission when you buy.

@John Y.,

@Kerry Baird is on point with her comments. All of your young new enlisted guys (aka bad tenants) will most likely be on base, but your mid level NCO's and Officers with families will probably be looking at off-base housing. It can be a lucrative market, however I would definitely make contact with the on-post Housing Authority, as they will be able to tell you what type of units are in the highest demand.

HI @Nick L.,

I put dishwashers in all my units to make them stand out against the competition, however I do not do garbage disposals. They have shorter life spans, a higher probability of a tenant electrocuting themselves when screwing around under the sink, and can create quite a liability in a house with kids.

@Jason L.,

I completely agree with @Mike D'Arrigo. Bail on this terrible lender and find someone else. In my experience any SFR refi should be 45 days or less total turn time.