All Forum Posts by: Nate Gelinas

Buy with a sub2, then lease option it to a retail buyer with poor credit. You can charge slightly above market rental rates, up the selling price by ~10% for your risk, and get a ~5% option fee upfront. Thats how I would approach it at least.

Since you are in GA as well, can you expand on the disclosure requirements a bit? Are you required to disclose when you market, or simply once you begin discussions with a potential seller?

J Scott, I just read your article, great info!

Few questions on it though. Do you by any chance know which agencies will allow you to be a passive agent (ie, just have the license and pay the fees for MLS access)?

Also I know you mentioned it briefly, but do you ever have issues with sellers backing out due to you being licensed? Or is it typically more of a qualification than a deterrent?

Thanks!

Thanks for all the sound replies everyone. I am leaving to look at the property in about an hour, I will update with details afterwords.

1. Go to your states secretary of state website and look around. Most have a database of sorts that can be searched. (for reference, here is GA http://corp.sos.state.ga.us/corp/soskb/csearch.asp?dtm=585844907407407)
2. I just based mine off an area I liked.
3. It really does not matter too much. Its personal preference, but if you plan on doing big things with the company then keep it professional.
4. Preference again. I dont use commas in mine.

Ya of course, but if you are content with that kind of return, then there are alot easier ways to do so without dealing with the hassle of acquiring real estate. Someone with a bit more experience may correct me if I am wrong, but that does not seem like much of a good deal at all. Your NOI using your estimated expenses would be ~22k, leaving you at a cap rate of not even 6%.

7.8% CoC seems really low. For example one property I am looking at right now is estimated to be 15% on the extreme low end, and 33% on the higher end.

Ya thats correct Keith. And it is not really a "rule" per say, so much as a guideline. There are properties out there that meet it though ;)

Mitch Kronowit, you almost make it sound too easy! What did you do before REI if you don't mind my asking?

Jacob Whitish, my primary issue is time. Being in the army is a bit taxing on the free time. Hoping to be able to do REI full time after a few more years in the military. Btw, I used to live in WA. Bellingham is a beautiful place!

Dale: although I am by no means an expert on recent real estate law changes, I have heard the "SAFE act" tossed around alot lately and how it affects creative financing deals. As such I was hoping to get something a little more recent which takes that into account. I will give that book a go after my current read though ;)

Reason I am asking is because I have what I estimate to be a pretty good offer on a 12 unit property that the seller is willing to finance. I am just looking to get the right information on how I can structure it favorably and don't want to mess anything up.