All Forum Posts by: Nicholas Gallinot

I live in a small town in PA and I recently came across a listing for what appeared to be a 2 unit property for $15900! The previous occupants were hoarders and the place is full of trash, but a good deal nonetheless. I got on the phone right away and found out that only 1 side of the half double is for sale, and its a foreclosure. The realtor is trying to locate the deed through the county but I'm told they are having trouble. We seemed to have located an owner name, which is the same owner of the side that is foreclosed. On the door of the side that is not for sale is a notice from the Sheriff's Office "notice of attempted services." I'm not sure, but from what I looked up it seems the house was purchased in the 60s so I'm going to say he owns it free and clear.

What I am trying to find out is how can I purchase the other side? I get there are a ton of variables, but a few things I'm unsure of in particular:

-if he hasn't paid his taxes, how could I use that to my advantage?

-If the home is in the process of being foreclosed, could I purchase it at this stage or will I have to wait until its fair game for everyone?

-Is my best option to try and locate the owner and give him an offer?

Any insight into this would be a huge help. I'm a first timer BTW, and I am partnering with another first timer. We have enough cash to purchase it outright if the other side is the same price as the first side.

I live one town over...I was looking there pretty often found some great deals but wasn’t ready to pull the trigger. Not sure how familiar you are with the area, but there is a state college right up the road (Bloomsburg University) and a very big hospital (Geisinger) that employs much of the area nearby too. There aren’t a lot of great properties available for people to live in in town, most of the gems are outside of town more in the country. 

@Adam Detig this is a good conversation that you started.  I first came across BP about a year ago after diving into a few other blogs (I really enjoyed www.affordanything.com, very down to earth and transparent in her RE ventures).  I plan to use RE just as supplemental to my income, so I am trying to get my W-2 job settled and a little less volatile.  I work as a correctional officer and my schedule along with my life in general has been crazy for the last year.  I made a commitment to take on an internship, student teaching to be specific, that will allow me to change positions within the prison while completing my graduate degree (paid for via GI Bill) that will be higher in pay and with more stable hours.  That will be completed in November.  In the meantime, I have been trying to save a what I can and see what is out there.

I have a decent idea of where I want to invest and even a few listings I've seen that would possibly work.  I am just big on not taking on a task that I wouldn't be able to devote the attention that is necessary.  In a nutshell, once I'm done with student teaching I'd like to put some offers in by the end of 2017. 

Great question!  I have been wondering how this process would work when the time comes to do so myself.  I understand the not an asset argument as well, but isn't that one of the benefits of creating wealth through real estate, being able to use the money you earn towards something you wouldn't be able to purchase without those funds?  As far as I understand, as long as you have enough cash reserves and you will still cashflow well, this would be a no brainer.  Sorry I don't have any actual information, I just am anxious to see what others say.

@Brandon Hicks Thanks for the positive input.  I feel that I've heard of quite a few people in similar situations to you that have been quite the driving force for my own goals.  Do you have a tried and true method or more of a whatever works by the situation approach to your creative financing?  

Thanks for the input.  This particular individual is a coworker of mine and I do not know the full situation as far as what type of lender he used or how exactly he went about it so you all may be correct that he is either misinformed or perhaps his terminology is leading me in the wrong direction.   @Sam LLoyd Going off what you had mentioned I was weary of seller assist from the first time I heard of it because as I am a willing participant in such a transaction, it is still difficult to fully understand the process, let alone trying to explain it to someone who is expecting a traditional sell.   And yes @Account Closed I am looking for 100% financing in one way or another being young with not too much extra cash sitting around.  Unfortunately borrowing money from my friends and family is one route I am not willing to go down, I prefer to keep business from personal life, however it is a good suggestion.  I may only be interested in a seller assist/seller financing option if it is brought up by the seller rather than trying to pitch the idea myself, at least for my first purchase. 

I've been reaching out to some friends and acquaintances recently to find out any and all advice those who invest in real estate have to give me.  I've been given a myriad of information, which is excellent, but there was one suggestion in particular that struck me as worth asking on this forum.

Basically, we were discussing the problem of lack of capital to purchase the first home in a portfolio.  His bank had suggested a strategy to him that goes (something) like this:  Property price is, say, 100k.  Bank needs 25% down.  Therefore, I offer the sellers 125k for the property, but only if the seller agrees to a 25k seller assist.  It sounds pretty simple and straightforward to me, but I just wanted to ask some experienced investors out there to see what thoughts and experiences you all have had with this type of creative financing.

I'm not too concerned honestly with the leverage aspect of things at the moment, I'm just trying to get a game plan for my first property that I plan on buying in the next few months.  I have heard of seller assist before, but not in this manner that my friend described.  Also, I feel that I should mention I do have a small amount of money saved up and that I can get my hands on if needed for minor repairs and holding costs for a limited amount of time, so I'm not going into this completely strapped, just looking at possibilities and options.  Let me know what you guys think, thanks in advance!

Thanks for all the responses everyone!  I feel pretty good after hearing that some people have had success with tenants already living in a property they purchased.  I think the nature of my area is what scared me the most...it is relatively rural and as far as I know (which I do realize as I learn more that I don't know a whole lot) it isn't the best rental market.  I know some people may wonder why the heck I'm choosing to invest in such an area, but it simply has to do with the comfort of a first purchase.  I am up for eventually expanding my reach, but I don't want to buy a property 3 hours away just because it is in a good market for my first buy and hold only to have it fall apart because I am not as familiar with the area and resources as I am around here. 

I did look into a bit further of an area from my original plan...and that is Williamsport, PA.  Anyone familiar with the area that has any input?  If I can explain a bit, I am super concerned with having a property manager, and Williamsport happens to be the closest area that has a well-marketed PM company.  So in a perfect world I would be able to find a property that has the right numbers, that is located in a town that has a PM company (like Williamsport) and is already tenant occupied.  I know there is no perfect formula but this is the path I think I am going to try and go once I have the funds.

Hi everyone!

I nervously asked a question on here a week or so ago and I got some very positive vibes from the quick answers/help I received, so here goes round 2. I am in the 'research and money saving stage' of my REI career and I feel overwhelmed at times by how many ducks I need to get in a row in order to comfortably take that first plunge when the time comes. My last question dealt with looking for a property manager and other members of my 'team' that I should have in place as I get started, and I now think I have a pretty good idea of how to go about taking care of that.

My new concern is dealing with the occupancy of the property at the time of purchase. As I had said in the past, I would like to focus on primarily buying multifamily homes (duplex or triplex) or if the situation happens to be perfect I would definitely consider a SFH. So assuming I am going to be tight on money at the time of purchase, and if I go about scrounging up enough cash to put in the necessary down payment/closing costs/any other upfront money needed, would it be beneficial to find a property that is already tenant occupied? I feel as if getting instant cash flow, even if it is just until the end of their current lease, would be very beneficial to getting my footing. Otherwise, I will have to have even more money saved up to cover the vacancy until filled, correct?

I understand there are some risks that go with having tenants already in place, such as they weren't screened by myself or my PM, they may not fully agree to the terms of my lease as opposed to the previous landlord, current rent price may not be where I want it, etc.  I'm just wondering if it is better to have these risks versus a vacancy of an undetermined amount of time that could end up costing more than I could afford and putting my out the game super early. 

I know its bit wordy for a simple question, but just trying to explain my thought process.  Thoughts? 

So after hearing some feedback, I think I am going to call around and ask some of the real estate agencies that best promote their PM services and see how I feel about what they have to say.  As much as I'd like to go pedal to the metal and find the next step and push forward towards buying a property, I'm still at the savings point right now. 

(On a side note, creative financing is very intriguing to me.  I do plan on purchasing Brandon Turner's book that has been advertised on here about no and low money down investing for some more insight.)

On the topic of team building, after I track down a PM that I am at least remotely comfortable with, what is the next suggested step?  I thought about finding a CPA who could help with my own personal finances (mainly just for taxes) that would eventually then help me keep the business side of things in line once I actually take the dive.  Are there other aspects of the 'team' that I should be looking into first, or is it all personal preference?