All Forum Posts by: Jack Bobeck

@Brendon K.

If you can use cash, it’s always a better option, preferably your own, but to get there use OPM or bank money. Know your deal, know you’re market, know what you can do.

I use a 6 month primary resident mortgage, it’s far cheaper than hard money and it’s about the same time as a 3-4 month flip. I’m hoping I can use this program for many more years to come to grow my cash to be able to buy a home straight with cash.

@JD Martin

He’s calling for a crash due to the Fed tapering their buying of mortgages. Less liquidity will maybe lead to a crash, but who really knows….

@James Somers

If you need to ask, stay out of the thing your least experienced with……….

A good agent is like part of your investment family too. Its worth it to have access to their resources, contractors and vendors. When its just you, it can be harrowing trying to find help for projects. But your good realtor will have great resources. Well worth the 3% alone. We have not even talked about their MLS access and their bird dog solutions. Plus you may alienate realtors by being your own agent, its clickish as heck in the real estate community. So again, I would outsource it, build a champion and family member for your business.

As a humorous follow-up - I received this from my Brightway Insurance Agent, apparently he's OK with getting a 15% increase year over year...... "Thanks for sending this over. We will need a new 4pt inspection if we want to look to write this policy. I show the policy was $1,256 and it’s going up to $1,487. It’s an increase, but not terrible."

The funny thing is that I sent him a 4-point inspection LAST year, as it was done 10/26/2020. So apparently you need a 4-point inspection every year for investor insurance, which is nuts. Its a giant racket! 

Just some insight - I got my renewal from Universal Property & Casualty - I went threw Daniel Miller at Brightway Ins for him to find me a good deal since I went through this last year with companies cancelling the insurance at rental properties. So UPC was $1256 last year for my 3/1 property in Murray Hill. This year they want $1487. So I called Security First (call them don't use the estimator online) and my quote came out to $1163. I have had Security First in the past as well. Good insurance. But I do miss the days of $600 insurance for rental properties. Its crazy out there. 

My experience has been what I have seen and what I have sold so far. My house started low and we got into an immediate bidding war that pushed the sale price up 3% above what was asking. Luckily the appraised value came in at the sales price. I am beginning to see more homes hit the market and flippers are seeing that people are not buying the "lipstick on the pig" homes like they had in the past. So any flip is NOT a good deal. You have to BUY right and Location, Location, Location, the basics are coming back to roost. You can get a better price based on where you are selling. There are still some people that have over-inflated ideas of what their homes are worth, but there are only 11,000 realtors in NE Florida too, we could stand to send a few back to their former employer locations. Still a tight market, I went by a Real Estate office in Avondale, more empty windows (no listings) than I can remember. I know there are a lot more sellers using the 1% sellers to help them save their flipping profits. 

@Kenneth Heyman There are a few MFH on the MLS as they just landed this weekend. You would do well to see what you find on the MLS first.

@Ronald Allen Barney I saw in a recent news story that rents are up 15% nationwide since the start of the pandemic. WS looks at money as cheap and they can get a better return on the money than the anemic savings rate. I see a lot more people doing month to month rentals or shorter, I think you can do 7 months in Jax. Someone always has a need for a place. So its a good time to get creative. I really like the rent the room idea with a common area. Some might fear COVID, but it works for nurses and people in healthcare. 

Maybe someone on BP can write a newsletter for investors to capitalize on these daily and weekly occurrences. Would be a great service to subscribe to......just saying. 

I know of a Realtor that caters to investors who look to buy New Homes only on Jacksonville's Westside for the Buy and Hold strategy. So its no shock to read this, but it is interesting to note that Wall Street is mostly interested in newer Homes and is working deals with large builders of homes. 

A new further squeeze on homes in the local markets. If the 1st time home buyer cannot find their home to own, they might just be renting it. A new Rental society, what new jobs will come from a rental society? Property Management and associated jobs\businesses could get huge.