All Forum Posts by: Nate Richards

Hi Kayla, 

Im local and buying SFR at your price point and below, mostly below. the big banks will loan down to 25k with a minimum 25% down but will bump rate to make up for the small amount. I've had luck with very low closing costs ($380) via my credit union but they require 35% down, which beats $2500 any day. you shouldn't have any issues getting a loan. Try to do it in one person's name, due to Dodd Frank so you and your spouse can each pull 8-9 conventional loans. Not sure how accurate this is, but I was advised by the Wells Fargo agent that we could EACH pull 8-9 loans so if both names are on a loan we get capped early.

Welcome aboard Ed! I'm a newbie too, halfway thru my second year.  Working on 2 properties a year as buy and hold. This place is great, and there isn't a question they haven't been able to answer for me. Check out the podcasts and downloads and keep in touch.

That depends on how you structure your lease option. 

Tenants are not stupid (all the time), so they will not pay the equivalent of  a 90k home value on your $40-50k home, plus be responsible for taxes, insurance, and repairs. Looking at the time on the market for these types of agreements should be an indicator.  

Personally, I've turned my "traditional" rental in 3 weeks, while lease to own units within a block remain listed after six months. It'll depend on how your contact is laid out. 

The snow may play a minor role in finding a tenant this time of year but nothing significant. 

@Paul Winka, abandon ship, as @Kyle K. advised. If  you have to replace the header(s) with a new LVL this IS a structural change, contrary to your opening statement, "The column between the garage doors is just there for architectural flair"

You're really going to keep losing rent over a $3 battery and $1.50 electrical outlet? Section 8 determines what is tenant caused and what is not and are typically fair.
You really want your investment to burn down because a lazy tenant would  not spend a few bucks on a battery, or kept using a faulty outlet? (Outlets fail all the time. I've had them fail in my personal residence after a year,  so I know their not being abused)

The stove issue is appealable (especially with it specified in the lease), and if I recall all back rent is paid by sec 8 once the home issues are resolved. Keep her til nicer weather then evict and have her voucher pulled for late payment of utilities. 

My take is this, and I have zero yellow letter experience but 11 years industrial automation sales so it may or may not be relavent.   

You are getting tripped up because this is not just talking, it is a sales call. You are trying to influence an outcome (get an appointment to view/value the home) not just make conversation. Relax and remember that you are trying to help people, as they immediately assume you want to take advantage of them. People work with individuals they like, and they know when you're lying regardless of their situation so stay likable. 

Some good (honest) replies are all you need;

Why did you send this?  "I do mass marketing based on several criteria some recipients are selling but most are not. Are you possibly a seller?"

What's your offer/what'll u give me? (This is your opportunity to close on your next action step) "I dont know a fair offer until I see the entire property, can I set a time to view it."

What do you like about my house? "I dont have the details on your exact property at this moment. If selling is something youre interested in investigating, we can discuss details after a walk thru."

Who are you/are u a RE person? "I'm not an agent, I'm a cash buyer/wholesaler/etc looking for mutually beneficial RE transactions (I.e. quick sale/no agent commission for the seller)."

Also feel them out for their circumstances. They are interested or else they wouldn't have called. They might not be motivated enough is what you need to determine, preferably before you waste time on a visit.

Hi Dan, unfortunately I don't have any answers. I'm trying to structure a similar deal myself. I want it to be a win/win for both parties and the retiring LL owns them all free and clear. None of the high volume landlords i know have attempted a deal of this type. Please keep me posted on what you find. 

Hey Bryan! 

Welcome to BP. That's a loaded question.  It depends on what you consider "a good location", and what types of property you intend to begin investing in. Do you mean the city of Akron, or the Akron area, which I take to include anything within 20 minutes drive from the central Interchange? 

Regardless, I don't personally believe you need to relocate, nor do I know why you would, short of not appreciating all 4 seasons, or having a strange affinity for natural disasters (hurricanes, tornadoes, earthquakes, droughts) that increase your carry costs.

Narrow down your niche, and then find the market. You can find it all here (SFR, in all classes, as well as small and very large multifamily). If you do some digging, i believe Akron/Canton & Cleveland are some of the most affordable markets in the country.

On a personal level, Akron's worked well for me so far, and I have modified my plan to stay in the city of Akron, as apposed to attempting to get into less familiar markets in Canton, Cleveland, or Youngstown.

Let me know if you have any other questions!

I  currently target Ellet, Kenmore, North Hill since I'm cash challenged. Barberton,  Norton, Massillon are on my short list too explore. I'm all in @ 30-45k or less , move in ready, with rents 750-850. I'd love to land Tallmadge, Hartville/Uniontown, Cuyahoga Falls but @ 65k+ it's out of range. Not sure it cash flows much better to offset the added landlord competition.

I agree with Zach 100%. If you're from this area pick the one that you are most familiar with so you can pick out the sweet spots. There are areas of each zip code I target that I avoid since I know the areas. Don't see any difference in returns when looking at your suggested targets so I stick with my primary markets for convenience.