All Forum Posts by: Nathan Harden

Hello from the other side of the country!

Over here we are seeing minimal inventory as a whole. SF and MF. Personally, I think we are seeing quite a few MF properties hit the market in my area because Washington is becoming harder and harder to be a landlord. They are pushing rent control, some of the laws that the cities and state are pushing through are down right Anti Landlord.

This is turn is creating a lot of people that are just hungry to get in to the game, they see these properties hit the market but have no idea about the laws that they will come across. 

In terms of REOs, I can't speak from first hand experience of the 2008 disaster but I will say this from personal experience with dealing with REOs right now. Banks are listing some (not all) close to market value and not budging on price for the first 30 days. Then they lower it a little (still not enough meet on the bone for an investor) But in my opinion, I think they are trying to get home buyers to bite on the properties before they decide to sell at investor purchase prices. So they are playing it slow and in no rush to give away deals without it first sitting on the market for a SOLID few months. Lets be honest though. REOs (atleast in my area) do not hang around long enough for a smaller time investor that's using Hard Money, paying points, carrying costs, etc. to make their numbers work for them to make a solid profit. Cash is King and always will be.

What type of inspection did you do? Did you do just the generic inspection and home the inspector crawled under there? Did you get a 5 point?

Honestly, I think you don't have a case either way. It's been a year. ALOT can happen in a year and is there really anyways of proving that the foundation issues happened more than a year ago? It would be hard to make a case for that.

Wish you the best!

Welcome!

It all depends on the seller. I have done deals where the seller doesn't care about your DTI because if you default, they get the asset back along with whatever downpayment you gave them.

I've always delt with sellers that wanted everything shy of McDonalds receipts.. Lol

It's all dependent on the seller and situation. 

Yeah, open up Redfin and start scrolling. What is a "valuable" property to you? Have you talked with a lender to see what price range you will be qualified for? Speaking with a lender first so they can point you in the right direction in terms of price point will only save you time in the long run. 

No point in shopping around if you don't know what you can afford. That's just aimless window shopping.

It's tough but at the same time, this is what we signed up for as landlords. I get it. We all have a human side but at the same time, if they can't afford my terms and they have proved that they have already missed payments to other landlords, it's a super easy decision. My house is not for them. 

As hard as it can be sometimes, you must separate your emotions. This is a business at the end of the day.

I don't walk into a Lambo dealership and expect them to hear my sob story as to why I need a more expensive car over a KIA that I can afford. You as a landlord should be the same, if they have Lambo taste with a KIA budget then help point them in the right direction.

It just sounds like you're really eager to close. Don't put the cart before the Horse. Close on the property then start making arrangements for furniture. Besides, you don't want to go out and buy a bunch of furniture or take out any sort of loan before closing.

I love all of the numbers except for the DP. I never want my entry fee to exceed that of which I would get from a bank. Look up the tax bracket and help show the seller how much money they would be giving away in taxes right off the bat from that $160k (unless they are doing a 1031)

All in all. Great terms besides the DP. Every investor is different but doing a 40% DP then closing costs on top of that, I would walk. Too many other deals out there to be putting 40% down. 

Wait...Time out!! So if you're going to be living in the home, then what is the sense of urgency to even accept an offer right now? If you don't plan on moving for at least a year then I see absolutely zero point in you accepting an offer right now. If the buyer wants it bad enough, them to come back in a year when you're ready to move out.

I will say this too. The stress, time and effort that can come with selling your home on your own, isn't always worth it if you are not aware how to properly protect yourself in a transaction.

I get it. I LOVE saving money too but at the end of the day, I own properties out of state and I don't try and sell on my own. I hire an agent, let them take over because they know their market and area better than me. Besides, I have my job over here so I happily fork out the 5% in commissions so I don't have to deal with tire kicker buyers over there and save the headaches for my day job. lol

As an investor I will tell you this. The best deals are found off market. If you, as a seller really want top dollar, you need to hire an agent to assure it's listed on the MLS for the most exposure as possible to ensure that you are given the best chance for highest and best offers.

I don't see any Red Flags to this. 

If there are no contingencies, inspections, etc. That Earnest Money is pretty much yours unless something unforeseen happens. I kind of think of this specific scenario like a Short Sale. I can get a Short Sale property under contract today, but it may not close until next year. That means my EMD (Earnest Money Deposit) is tied up in that property until closing.

My only question to this would be, why are you waiting until 2025?? Are you giving this buyer the deal of the century? I'm just confused as to why the buyer is giving you an EMD now, but wanting to wait a whole year?

@Sam Yin

Hey, I love it. Different strokes for different folks. 

I would love to hear how you structured your I/O deals. How long was the I/O, did you get a better rate with I/O, did your numbers work with PITI initially or did you choose I/O to get a smaller payment upfront to get the asset up and running?