All Forum Posts by: Nick Maugeri

@Wendy Patton yes, that helps a ton! Thank you so much. I'm going to be getting after it 👍

@Tracey Leung I found that doing a ton of research on realtors resulted in getting no where. I was basically looking for the best realtor in the area and bringing little baby commission their way, that's not appealing to them. I started hitting the 'contact realtor' button on realtor.com for the worst properties I could find. Then, the process of vetting by fire, as I call it, started because I knew those realtors were about making things happen any way they could - even on the worst homes out there. Eventually, I found a rockstar.

@Stephanie Gledhill you're absolutely right! Most of them operated in that fashion, as a result - I went through a ton of folks. So, when i found my current realtor and explained what i was looking for, she analyzed and personally viewed five properties I sent before reaching back out to me. If a realtor sends me a deal outside of what I have described more than once, I move on to the next realtor - they are just looking for a sale and not a partner.

@Daren Jones thank you for the insight

@Wendy Patton great to know. I thought they would have to wait until the option was exercised! If this is an option, I will be using it. I was thinking of a property acquisition bonus, but this sounds much better and easier. Thank you!

@Andrew Baker I chose the market because there are existing renovations happening already, this way I didn't start it as the fixing and flipping and investing has already been happening.

For this first one, I just wanted to buy something that was going to be low maintenance, with a purchase price below market value based on comparables. Having a tenant already was a bonus.

Now I have been purchasing and offering on sfh that need very few repairs done, and homes those same homes I am buying below market value. I've just closed on a house at 65K that should have sold for 80k - 84k. It needs about $400 to get it rent ready.

Not sure if that answers your question or not, but that's what I am looking at.

@Ryan Proffit I know every state has different landlord tenant laws and there are some ways to get around things. This lease had a clause that allowed me to give notice to cancel lease and raise rents after change of ownership, I chose not to do so.

@Kris Mead I called around a bunch of local lenders and settled with one that can do 85% LTV, 30 year fixed varying from 4.7% - 5.37%.

I agree with all of this and love this concept. I have acquired three in the last month of there and I am realizing that the cash flow is going to be forced up one way or the other. It seems likely I made a questionable decision in honoring the existing lease; however, I wanted to enter the market on good terms. I am trying to acquire more units, I have quite a bit more success than expected with creative finance options - but, it sucks not being able to get my realtor her commission! That is the largest problem that I am having right now, along with liquid capital. 

 Yes, sir. I cheated a little and already set aside a lump sum for repairs and maintenance that are expected. Many of the large cap ex has been taken care of within the last two years - and with a home warranty on the property; the deductible will be sufficient for some of the larger repairs. Anyway, the monthly all in is $699, the existing market rent is $1200. So, after some years, I should be able to meet that cashflow potential.