All Forum Posts by: Account Closed

Hi everyone,
I have a chunk of money I am wanting to put into real estate. I am wanting to get some advice on what to do. I do not currently own any investment real estate.

My question is, with the cash that I have what would be the best route to go? Duplex, triplex, or even quadplex?
*how much is the costs to build each of these?
- ideally I would like to do two bed two bath or maybe even one. not opposed to 3 bed two bath.
I would like to build new.
-I have good connections with a local contractor that could do it. Mind you on these I would use mini splits.

secondly, would you recommend a barndomenium style, brick with vinyl siding, or all vinyl?
Im not scared to leverage but on my first investment I would like to do half down to limit risk and build more knowledge before I started leveraging more.

any tips or ideas are most certainly welcome. Thank you so much guys. Best, Jake

@Jacob Hancock: Listen bub, if you can accumulate $500,000 cash by the time you're 25, you don't need us. We'll just slow you down. Just keep doing what you've been doing and you'll be fine.

6 Votes

Quote from @Chris Seveney:

@Mike Hern

Ok so they are unlicensed / uninsured escrow agents. I could not figure out what the heck they were or why they were needed. Now it makes sense.

I think they will also fill out the purchase and sale agrements and track the progress of the transaction. Sort of a blend between real estate agent and escrow officer. In that capacity, I believe they give advice (legal?) to get the deal to close and to handle the seller's questions. That's what I pick up.

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(I do that without hard costs or a real estate license)

From Pace's Transaction Coordinator Molly Tennant

https://go.toptiertc.com/join-today-a

It's quite a cottage industry. ;-) You can do this from your basement bedroom in your underwear someone said.

0 Votes

Quote from @Chris Seveney:

Quote from @Heather Kiddoo:

Quote from @Timothy Michael Mick:

Are there non-disclosure laws that prevent transaction coordinators from sharing information with other people?

HI Timothy! I"m a Top Tier Certified TC in the creative space. I'm just curious if you have had a TC share information about you with other clients. I hope not but just curious as to what prompted this question.

can someone explain to me what a transaction coordinator is?

It's a term made up by Pace Morby to do escrows/act as a real estate agent and to circumvent any existing escrow agent fiduciary and legal requirements in closing Subject To Transactions.

Pace Morby or his representative "certifies" the “Transaction Coordinator”. They take No responsibility for their work after they record the deed according to one “Transaction Coordinator” who was active on Bigger Pockets Soliciting business.

0 Votes

Quote from @Richard Chae:

So as far as informing them, would I put this in the contract informing them and having them initial and sign stating I informed them and provided the necessary items to prevent such an incident? Or would that not matter?

Floor mats for sure. Putting an agreement like that into a contract probably won't help from a liability stand point but it does alert them to the problem, which is good. Get unmrella insurance. You can make a "landing zone in the entrance that is wood or carpet or cork with a transition to the tile if it is that much of a concern.

2 Votes

Houston, Texas

Quote from @Kerline Jean- Baptiste:

Hello, my name is Kerline, and I'm a registered nurse who is new to the BiggerPockets forum. I have a strong interest in becoming a real estate investor. Despite listening to numerous podcasts about real estate investing, I'm struggling to take the first step. I've reached out to several real estate investors on Facebook for guidance, but unfortunately, I haven't received much assistance. Currently residing in Orlando, Florida, but I'm considering relocating to Kansas City, Missouri. While I do have some cash reserves, I'm uncertain about the best approach to take. I am eager to connect with a mentor who can provide guidance and support as I embark on this journey. I am fully committed to putting in the necessary work and dedication to succeed in real estate investing.

SN: Just to put it out there, I'm incredibly shy, and writing this post is definitely stepping out of my comfort zone. But that's just how much I'm determined to kickstart my journey as a real estate investor.

@Kerline Jean- Baptiste: I certainly understand. I'm currently helping a couple of nurses get started. There is a difference in some people's minds between a "mentor" and a "coach". A mentor generally doesn't cost you anything and you find them as you build relationships. You do that by attending REIA meetings, meetups and starting conversations with like minded people. You spend a lot of time reading material and doing research, hopefully in a year or two you buy a property.

Coaches fall into two groups, both of which have entry fees. One type of coach is a "group" or "community" where active investors are meeting and occasionally you find people who can answer your questions. The “coach” rarely gets involved in the process of teaching you personally. It’s usually a friendly place with a lot of elbowing for attention.

The other type of coach provides "one on one" coaching that takes you through the process, by the hand, and helps you actually buy properties, like the way we coach. One can be as shy as they care to be and still buy properties.

So, it's a personal decision on which is best for you. I have links to resources for each type if you choose to connect - just click on someone's name and click "connect" There are a lot of helpful people on Bigger Pockets to ask your questions to.

0 Votes

Orlando, Florida

Quote from @Peyton LaBarbera:

I was wondering what is a better style of creative financing... the two options I am interested in using for my real estate investing business are either a lease-purchase agreement or a lease option.

Which would benefit the seller more and which would benefit the buyer more?

Thank you,

Peyton LaBarbera

Normally a "lease-purchase agreement" means that the buyer is obligated to purchase by some set date. It's a lease agreement until the requirement is fulfilled. I believe it benefits the seller more because they have a "guaranteed" sale. Even if something is discovered in the inspection phase etc, there still is an obligation to purchase. Even if interest rates become outlandish, if the buyer uses lending to buy, he has a much higher payment, which he may not even be able to afford. There is a penalty if they don't fulfill the contract. This one isn't used nearly as much as

A lease option - which gives the buyer the right to cancel the agreement at anytime, for any reason up until the option date expires. This benefits the buyer more, since depending on how it is written, it can lock in a future price and if the buyer would benefit from exercising the option he may, if the numbers run against him he can back out. The buyer can walk away with simply losing his option fee or he can choose to exercise the option.

Options are like Ice Cream, there are at least 37 variations. Whatever you want to put into an option can become part of the deal.

1 Vote

Quote from @Diana Rosett:

I need a RE lawyer to help with my sticky situation with a property in Newton, MA. I JV'd on a property and am about to lose everything. The new buyer wants our LLC, so that he doesn't have to go through the waiting periods to tear down. I want to see if it's possible to put a new lien on this property so that he can't get a construction loan without paying me back. OR I would consider JVing with the new buyer to get my principle and small interest on the back end of the project. Can anyone help? Old lender wants to sell on Tuesday, but we are not conceding to relinquishing the LLC for his benefit. We have waited a year and half, but now we're out of money.

It's a little cryptic but how could there be a new buyer without paying you off? Is this a Subject To gone bad?

0 Votes

Quote from @Bradley Babineaux:

I am currently working on trying to wholesale my first deal. I am shoppping the property to potential buyers. If this falls through, I am thinking of just taking over the mortgage myself in a subto deal. The issue is the property needs a good bit of work and I dont have the capital to do the repairs, like a roof replacement. Would it be smart to take over the property,do all the minor repairs myself to make it liveable for a tenant and get the ball rolling on rent and save up capex to do bigger repairs later?

Thanks in advance!

Can you afford the payment? Can you fix the place and still service the debt? What if the Due on Sale is called, can you pay off the loan?

1 Vote

That's a loaded question. It depends on whether you are using current investing methods that include a bank or if you are using creative financing.
Here is the difference. So, if you are fairly well funded ($50,000 cash) you can buy 3 times as many properties and get much more equity and cash flow using creative finance.

New Bank Loan	Traditional	Subject To	Take Over Existing Loan - has
			already been paid down some

Purchase Price	$400,000	$332,196	(Take over existing loan)
Down 20%	$80,000	$10,000	To Seller
Loan Amt	$320,000	$332,196	(Take over loan)
New Loan Payment Rate 7.75%	$2,293	$1,465	Take Over Payment Rate 3%
Difference		$828	Your Savings per month
Other	$0	$0	other
Loan Origination Fees 2%	$6,400	$6,400	Your Savings On Loan Fees
Closing Costs	$3,500	$3,500	Closing Costs

Cost for length of Loan	$825,307	$490,512	Your Cost for length of Loan
		$334,795	Your Savings over
			Life of the Loan

Using Bank Cost to acquire	$89,900	$13,500	Using Us Cost to acquire

		$76,400	Your Savings Just By
			Buying Using Subject To

Total Savings		$411,195	Your Savings Total
			w/Subject To

0 Votes

Quote from @Maxine Taylor:

Hi All,

Brief history: Bought my first (and only) property 2022, currently living in it. Want to purchase my next preperty (SFH, Multifamily) with creative financing, due to lack of down payment funds required (and the market now is tough).

I've read 'Wealth without Cash' and follow Pace Morby, but I would love to connect with some people IN SEATTLE (or the surrounding areas) who have done and are currently making deals this way. There's a lot for me to learn, and any recommended next steps would be helpful.

I am actively saving for the next place, and would like to avoid the traditional agents, bank fees, etc, and work directly with the seller off market on my next deal.

*Anyone know of a Seattle meet up that is planned? Or a group that already hosts these kind of events?*

Thanks all, Newbie here trying to step it up. Any feedback is helpful on these topics, and appreciate your time!!

I'm from Seattle and made my first million doing Subject To there. But that time has passed. In my opinion, it isn't a safe environment to do Subject To in and it is better to choose places like Nevada, Arizona, Texas, and the midwest.

2 Votes

Seattle, Washington

All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4070 times.

Post: 25 Year Old with 500K in liquid Cash. Wanting to build duplex - all the way to quad

Post: Transaction Coordinator Law

(I do that without hard costs or a real estate license)

Post: Transaction Coordinator Law

Post: New house has tile throughout

Post: new New to this forum and eager to find a mentor

Post: What type of creative financing option is better?

Post: Time Sensitive! Need Immediate Legal Help in MA.

Post: seeking advice for possible subto deal

Post: Advice - First Time Investor

Post: Creative Financing–Subject to–Seller Financing––BEGINNER