All Forum Posts by: Michael W. D.

@Alexander Schloe

It depends on the property value and cost to remediate any issues. A lawsuit would cost money and tie up funds. If you’re just starting out, think of it as an education expense, fix the issues and move on. I would find a better and more trustworthy team in the area you are investing in. Start with the real estate agent and tap into their network.

@David Rosenhaus

You don’t necessarily need to be the “money guy”. Find a partner and bring something else to the table. Maybe you can manage contractors or do renovation work.

I think you’re starting off by saying “cannot” and “can’t” too many times. Rephrase and ask yourself how you can.

Also good to go to your local free public library and rent a couple of the classics.

NJ is a very expensive market. Find an area in NJ or look in a different state.

Good luck!

@Dilini Peiris Going through something similar right now as well. You can try a different bank. You can contest the appraisal with the current bank. You can accept the terms and move on to the next deal.

Key point is learn from it, make a decision regarding it and move forward with your goals anyway. Good luck.

@James G. It depends on the relationship you have with them, but if you are a client, they should have a fiduciary obligation to you.

@Lauren T. Congratulations Lauren! Did you buy this in an LLC, and that is the reason you went with a commercial loan from a community bank?

Hi everyone, I just came across this post and have some follow-up questions. Do these bank accounts need to be in my personal name? Do I need an LLC to open up a business account? How do you open a business account without an LLC?

Where did all of you learn how to run your business? For example, paying contractors 1099's, common tax rules, incorporation of an LLC, LLC structure with a holding company. I have a lot of questions regarding the setup and structure of a rental business and would like to learn more to have a better understand and make faster progress. Thank you in advance!

@Troy Gandee thank you for the reply Troy, I appreciate it.

Hi Everyone,

Happy 4th of July! I am making my first purchase of a 932sq. ft. SFR 2BR/2BA detached ranch style home in South Carolina.

Went through inspections and a bubble in the sewer line was found in two areas. There are a couple of other things, like a complete deck replacement (14x15, about 1-2ft off the ground, which is also something I knew about, but only thought the decking boards needed replacement) and a previously repaired settling issue that leaves a raised impression in the floor.

I think I am still getting it at a good price, but hired an appraiser to confirm (since its my first investment) and am waiting for the report.

Does anyone from the area have a point of view on whether these are large issues or small issues to worry about and a suggestion on how to proceed? I appreciate any responses and thank you in advance.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I'm a NJ RE agent in my 15th year, but new investor who is longtime on BP and suffering from analysis paralysis.  I am considering purchasing this property to get one under my belt.  Saw it and ran calculator as a cash deal although I may obtain financing for it.  If I can get it at this price, ARV may be around $140k with 10-15k in work.  Did I factor in a big enough cushion at this price?  What is the highest price I should consider for the purpose of the offer?  How do I lessen my risk when buying sight unseen?  I appreciate anyones insight and comments.  

@Da Shiek Woodard

I would suggest that you purchase a multi-family property (as your primary residence) that you would be comfortable living in for one to three years (depending on your mortgage companies rules and regulations). You can do work to it as needed during that time and in-between tenants all while you’re increasing your equity in that property. After you and your family are ready to make your move from the multi-family to your next home, you would then be in a position to purchase another property without having the necessity of a higher down payment. Doing it the opposite way, where you buy your primary residence first, can make it so your mortgage company will require a higher down payment, 20-25%, when you own one home and are buying an investment vs. another primary residence. Good luck with your move.