All Forum Posts by: Anna M.

Wow, great advice on using my LLC, @ Jay Hinrichs, didn't even think of that!Definitely going to implement that just to try to get a fair chance at viewing properties in this already competitive market.Thank you Jay :).As for making an offer, the comment from seller only to some extent precluded me from making an offer. The only way he finally agreed to show the property is my buyer's agent indication that while I was female, I did serve in the United States Army and perhaps that softened him up abit, but sadly by then the damage had been caused and it left me wondering just how many more hoops I would have to jump through with this guy, but I decided to still push forward.I did drive by the property, great home with a few exceptions.I live barely 10 minutes from the property so had seen this property from a distance and thought it was a fairly decent property and in my opinion actually in a great location, security was the least of my concerns.Upon looking closer at the property, we did discover that one thing that a structural engineer would have a problem with is the foundation.There was clear evidence of some issues with that, so the listing price definitely does not support what is being offered and that is not based on any gender perspective.My buyer's agent is an investor himself and has done numerous flips personally and written books on this and he showed immediate concern for the visible huge gaps in foundation, that could cause an issue with inspection.We also looked at the numbers and it just did not seem to add up, leading us to conclude that the property seems way overpriced for the condition it is in.The concern was tactfully brought up, with the intent of still moving forward but to see if he would take a lower offer to help account for the extra cost that would need to be put into making the property safely habitable. I am no stranger to hard work and have actually done quite a few DIY projects on existing investment property and to be honest do not mind properties that require just a little more love to get them up and running again. As far as us presenting out thoughts on the fair offer we were thinking of making, which was very reasonable and based solely on actual MLE cost, he was less than amicable and flat out declined to comment further after stating that the property cashflows and that's that.To each his own, I figured it best to move on.The property has been on the market for close to 3 months now with recent $20K price reduction and to his defense, it might be that he is frustrated at this point that no one is buying and hates the idea of having to go lower.As some say, he may also have been trying to look out for me, just sad that it needed to come out the way it did.He probably is very aware of the structural issues and perhaps thinks that a male buyer would be more inclined to buy and flip the property, I don't know? It has not deterred me from my search.Actually found another property that I really liked yesterday (10/29/17) and put in an offer, waiting to hear back.So when the going gets tough, the tough get going, was just a shocker is all.

“A good hockey player plays where the puck is…a great hockey player plays where the puck is going to be.” Wayne Gretzky....The same is true in real estate investing. If you want to be a great investor, spend not where the population growth is, but where it’s going to be.

great take-away from the article by Ken McElory, "Follow the Facts: How Population Changes Affect the Real Estate Market." @Erik Harrison, once you figure out where that growth is going to be and if it is a place you are comfortable "getting started", therein lies your answer, just my two cents, but am certainly no expert.  All be best and please let us know how that goes.

Short and sweet as @Steve Rozenberg suggested and no need to explain why as @Nathan G. explained.I too have never had someone come back to ask why and that is because like @ John Thedford, I do a supplemental application package that details the qualification criteria (being very careful not to show anything that could be misconstrued as discrimination) upfront.That makes my life so much easier should one come back and want to know why.I work to keep it even across the board and if one does not meet the criteria they just do not meet the criteria.Application fee is also non-refundable, as it covers the screening costs and they are made aware of that in the add and supplemental package. I tend to like @Jim S.’s short and brief reason for denial should you ever be required to go to court, “they lied on the application.End of story.”!

Great points @Nathan Gesner  And I actually was not sure if the article to answer his sole question of whether or not he could rent to an illegal immigrant was accurate or not.  I did a search just for that, but thus advising him to check with an attorney.  I like the additional points you bring up, which are oh, so very important.  I like to know that my tenants will stay and not be yanked off property by some legal mandate, so absolutely agree with you on being cautious renting to illegal immigrants from that perspective.  I too do what you suggested, which is request for pay in advance for those that may pose a flight risk, at least a slightly higher deposit, first and last month's rent and this is not illegal immigrants but people that have poor credit/items of concern on their credit. I really like Bigger Pockets because one really gets to learn so much and I find that people are so willing to share their knowledge which is just awesome!  :)

You are so right, it is hard to do it remotely.  I like your fire though, so keep that burning and once you get back, let nothing stop you men, the sky is the limit.  Thank you for your service :)!

LOL, @Account Closed

“1. Should I Just continue learning, networking, latching on to an investor/ mentor and continue to just build my capital up and wait for the market to correct itself or 2 start out with either a FHA or VA loan and find a Small multifamily to get myself in the game."

@Dantuna Pernell, am no expert but a great mentor who also happens to be my buyer's agent once told me, "why wait!".I get the same from watching real estate podcasts and learning all I can about real estate (check out BP Podcasts and others such as Grant Cardone).Sometimes the best way to learn is just getting in there.Seems to me that you are in a great position with your eligibility for VA loans, I regret missing out on that opportunity (my service time fell short slightly so I could not do a VA loan).At 70K saved up, VA Loan, I don't see why you would even consider waiting. What are you waiting for?Best way to learn is to jump in and get started NOW!Sorry not screaming at you, rather just encouraging you to get moving.What if the market takes 2 or 3 years to correct itself?No one really knows when that is going to happen.While you wait, the rest of us motivated buyers are buying up properties that you would have been in the lead position for.If you are in a position to buy, though I see that you are still overseas for another 7-8 months so not sure how that works, but if you are looking to get into the market and can do so remotely, then why not?If your lack of experience is the only thing that stands in the way, I see get out there and go for it and then keep up with BP forums, while also learning from doing and those that have succeeded at doing.Sometimes the best mentors are on the BP forums and you find them for free! Just my two cents, all the best.

Are these your only two options or can you simply get on with your search and not be limited to these 2 options? That being said, I believe what you meant on #2, is current landlords states has "PAID" on time?  What is their debt to income ratio like?  Would the $25K/year be sufficient to cover rent alongside other expenses.  I think you would need to know that and/or provide that information for better input.  If rent is the only expense, then it seems to me that while the $25K is not at X3 the monthly rent which is what many like to see (I personally am okay with X2, but again depends on current debt to income ratio), you might be OK.  I would not however wait, because vacancies are costly.  Perhaps do a holding deposit if they are really serious about renting from you.  That holding deposit becomes part of their refundable deposit or is forfeited if they do decide not to move in after agreed upon time.  In the end, unfortunately you cannot be in the business of holding out and hoping they take you on your offer.  You are the one with the property, they are the ones needing to rent.  You have to meet halfway, or else keep looking.  #1 on the other hand is too flaky for my liking, too many red flags there.  I would pass on #1.  #2, I would get more info, just my two cents.  All the best.

@ Ben Naughton, a quick search on the topic revealed: the information shown below.  Please check with an attorney to confirm this as needed and all the best.  Would be interested in knowing what you find and if the information presented below is legally correct.  Cheers! :)

WHERE TO FIND: 

http://www.equalhousing.org/wp-content/uploads/2014/09/2012-Immigration-Status-FAQ.pdf

"Does immigration status affect whether a person is covered by the Fair Housing Act?

No. Every person in the United States is protected by the Fair Housing Act. A person’s immigration status does not affect his or her federal fair housing rights or responsibilities. The Act prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status, and disability. Such discrimination is illegal regardless of the victim’s immigration status.

Examples:

- If a landlord refuses to rent to someone because of a person’s religion, that is illegal discrimination regardless of immigration status.

- If a landlord charges a different price or asks for additional identification documents because of a person’s national origin, that is illegal discrimination regardless of immigration status.

- If a lender offers different terms on a mortgage to a prospective homebuyer because of the homebuyer’s race, that is illegal discrimination regardless of immigration status. "

I agree with Embert Madison Jr and that is what I do.I don’t do a pet deposit, instead I wrap it all together in one clean bow, pet fee of $45/month.After my last tenant that had a cat that marked all areas of the carpet in my basement rental unit, I know better than to do a refundable pet deposit.

On a separate note, I am glad to learn that you are thinking of renewing your tenant’s lease.I would do more frequent inspections than 5 to 6 years out.There are certain things if left unaddressed will be very costly 5 years down the line.It is a business and frankly I run it as such.I am out to protect my investment and in all honesty if tenants are clean and care for the place then they have nothing to worry about with at the very least, annual inspections.It shows that you as the owner also do care about your property.

Thomas S.I like your advice on charging market rents.I too have fallen victim of thinking I need to charge just below market value for my rents, and just yesterday an appraiser (am refinancing my property out of FHA to conventional), advised that my property is so well maintained and upgraded that I should be charging market rents.I will take your advice. :)