All Forum Posts by: David P.

Heather, you do need to have the accounts linked to your personal accounts.  They are a little behind the time with their technology - I totally agree but they have always done right by me and I have several loans through them for properties out of state (AZ).  Hope this helps :-)

I am looking for referral for a great property management company in Green Bay, WI apartment building.  

Any help would be greatly appreciated!  Please PM me with anyone you would recommend staying away from.

Thank you in advance

I believe they are already doing this by zip code. However I don't think they would ask you to reduce your rent if you are already renting to the current tenant; but maybe with a change in tenants, but this is then your opportunity to stop doing Section 8.

See: http://www.huduser.org/portal/datasets/fmr/fmrs/do...

I currently have 2 section 8 tenants and I am limited to this by our county, however that is my situation, it may be different to where you live.

Hi Brie, congratulations on making your goal!  I have often considered the area North of Chicago but find it doesn't meet my profit criteria - and often the 1% guideline (not rule). 

Currently your gross rental rate is almost $600 per door, but what is your net per door? Can you break this down by state or even city?  Many people boast about the gross rents but it doesn't mean they are make a profit, and I wanted to understand from your perspective how much your net really comes out to be and if it is profitable to be in the upper Midwest?

I was looking at a foreclosure auction - where the HOA is foreclosing on a property due to non-payment for association fees (approx $10K). It appears that the Bank (1st) has not started the foreclosure process yet, and wanted to know if I win the bid what right does this give me as I would own the 2nd? Apparently, the owner is no longer in the property - the property is empty. Can I rent the property out until foreclosure happens? How do I go about getting my initial investment back?

Thank you in advance!

@Frankie Lowe when you make offers - you should be embarrassed - and if you are not then you are not making a low enough offer.  I am not saying steal the property from them, but you need to make it a win - win - win for everyone.  I would highly suggest listening some of @Michael Quarles podcast both here on BP and on his site.  

Yes you want good RE Agents on your team; but their incentive is to make a commission from your deal, so depending on your strategy when purchasing the property is when and where you may use them.  The agent/broker only makes money when they list and sell the house - and if you are wholesaling it is difficult for both you and them to make a commission.  

Having multiple strategies and working them to your advantage will then allow for an agent to make a commission (on a flip) but when wholesaling you are cutting out the "middleman" so agents often have no incentive to do anything for you. By offering to list properties with them (if you fix and flip) they will do CMA's for you.

I would suggest your local REIA group - here you will probably meet some agents that are more investor friendly and will work with you on deals. In this business you have to network with like minded individuals! Take a few out to lunch or coffee and discuss strategies - this will go a long ways in getting help.

@Frankie Lowe can't close the deal because you don't have access to MLS or no comps? Wow, seems like a poor excuse! Sorry to be honest here but you don't need to offer an agent anything to do this for you. You should have an agent on your team that wants to work with you and earn a commission when you sell the property, however you don't have to have an agent to run you comps.

There are sites available to run your comps - it's not very hard.  You can use sites like Zillow, but DO NOT the zestimate!  Look for like kind properties within 1 mile of the subject property that have sold with in the last 3-6 months.  Filters are available on Zillow to only show you these properties.  What I usually do is take the most recent 3-5 properties and do an average price per square foot and then your subject property multiply the square footage by your average price per square foot - this should get you close to a comp price.  

Remember this is ARV (After Repair Value/Market) and what people will pay if sold with an agent - 6-7% commission is already inclusive to the price. When you wholesale the property you need to make it appealing for an investor to purchase the property. ARV - 30% - Repairs - Assignment Fee = Offer. The 30% is dependent upon the area and type of the property; and repairs are subjective, but be honest with the owner and yourself on these costs. Hope this helps, and a deal is only a deal if it make money otherwise you need to walk away!

The old saying goes - "teach a man how to fish and he will eat for life! "

@Joshua Swanger there have been a lot of newbies looking for mentors but the key is what can you do for the?  Being a mentor takes valuable time - what is your focus in being a Real Estate Investor?  It sounds like you want to buy properties but are you sure?  Why are you sending out yellow letters - to buy properties yourself or to wholesale?  Have you built up your buyers list?  Do you have contracts in place ready to fill-in the blanks?  Financing - are you prepared?

So enough of the questions, but more for guidance;  search BP for mentors - read what others have posted when looking for a mentor.  You will see the biggest part is knowing your direction and knowing the terms.  If you are handing out business cards and sending out yellow letters are you prepared for the questions?  Finding a local mentor is critical to your success as they will know the local laws and the ins and outs.  Utilizing more than one person is also a choice - have multiple tools in your portfolio to use!  

Good luck and I wish you success!

Andrew, yes bring the insurance into prior to doing anything - except turning off the water at the source!

The insurance company will assess the situation and either recommend/hire companies to take care of the situation.  He may even be compensated for lost rent (which will probably cover his deductible).  

Additionally, he should make sure to take photos and video of all damage as proof of damage before the insurance company gets there.  This does happen, but anything he does maybe misconstrued by the insurance company.  Play it safe and let them decide what is best!  

I have a friend who works with such companies that do this type of work and often times they can mitigate mold prior to it actually happening.  He says most people don't know how to properly handle water damage and the property can develop issues in the future. 

Either way it is best to involve the insurance company to ensure it gets done right!

@Ben Leybovich at the beginning of the week, I was talking with a lender and they too indicated that a micro bubble burst will probably happen sometime this year.  The rates look attractive for the 5 year, but going out to 10 is my preference to bridge the gap of downturns.  Over the last few months I have seen larger portfolio's coming on the market - properties that were purchased in 2012.  No these are not hedge funds liquidating - even though I have seen some of them too... these are personal portfolios worth millions.   

@Kathryn Marchetti  history does repeat itself and I have seen our market do it three times now and each with different severity.   I think this time it will be different as the Fed has printed so much money that something bigger is on the brink of happening; the housing market maybe the first domino to fall.   

If the dollar resets - my guess that the next recovery will go deeper and take much longer to recover.  No the "Sky is not falling!"  I am suggesting to stay financially fit and don't be tempted to over leverage!