All Forum Posts by: Mike Garland

My RE attorney has her RE license.  Let me ask her what she thinks.  PM me.

When you mean "small", how much money are you talking about?   Reason I ask is that a portfolio lender, such as a small community bank, typically does not want to look at loans less than $50k.  The cost to the borrower as a percentage of the loan can be high.   

Example:  $50k loan

Costs:  $450 appraisal, $500 origination fee, $350 title (this is if the seller pays for the premium), $550 attorney loan doc prep.  There could be more... but in this case we are looking at close to $2,000 in closing costs...that's 4%.   

Consider some alternative financing until you have a small portfolio of properties that are cash flowing, then go to a lender and get one loan collateralized by multiple properties.  Brings the cost as a % of the loan amount down.  I recommend making initial inroads with community banks and visit with their loan officer on options.  Good Luck!

I agree with Tim, this idea sounds like a nice hobby but as fast as the market is moving here in SA, the data will become obsolete pretty quick imo.

Ask yourself is this the best use of your time and resources?

Steve, welcome aboard!  Hope to run into at some point.

EL Smith Plumbing.  http://www.elsmith.com/

Was asking a real estate agent today if he invested in real estate.  He said he had a few condo's.  I asked him why that type of investment?  He said at this time he was not looking for cash flow, really just an asset he could pay off in 15 years and either have it for cash flow at that time or to sell.   He said he likes them because the HOAs pay for a lot of the upkeep.   I have a hard time making the numbers work on them.

Smart idea

Setting up an LLC in Texas is a bit more expensive than $50. The state charges at least $300 if I remember correctly, so you are looking at typically $400 - $1,500 depending on who you use.

Welcome aboard from one newbie to another! I am seeing the same things you are that the prices for both SFR and Multi are going up and outpacing the rents which in turn are making it tough to find a deal where the math makes sense, especially on MLS listings. Doing some marketing to mine up some off market deals seems to be the solution. My marketing has been very limited with my full time job so I have been working on making inroads with those that do the marketing and find those deals. Still working on my getting my first one.

Chad, thanks for the solid post.   I already booked marked some of the links so thanks for providing them.  Thank you for the good advice as well.