All Forum Posts by: Dave Passey

The only way around the 1 year occupy rule is if there is an extenuating circumstance that is causing you to have you move out early. There are legitimate reasons that this would happen like if you had to move for work. Some people will create "extenuating circumstances" that would make them have to move out early so that it can become a rental. It's shady. 

That's what is sounds like from a quick glance. I obviously don't know all of the details though.

Hey @Maya Smith-Gilbert

So let me see if I got this correct. You have a property that has a $440k ARV that can be purchased for $100k and only needs $30k in repairs?

I will literally send earnest money to you right now. I will buy this deal from you right now and close on it immediately. 

Seriously.

An FHA loan can be used for a 1-4 unit place. They are still considered to be Single Family Residences. It seems like the people in your situation probably were not totally honest with their lenders, which people do at times. I would recommend avoiding doing that.

@Jeremiah Purdum You are the third person that I have heard mention Stockman Bank as a good lender. I have heard that they can be relatively investor friendly. Maybe this will be the kick that I need to finally go and talk to them.

I guess the first, and honestly, most important thing, would be to shave that mustache. Second, are you going to be able to take over the mortgage of the home? Are they going to continue living in the home? You could probably do a Quit Claim deed to then own the property and you might be able to assume the mortgage. I am not entirely sure of all of the rules about that, but a mortgage broker in your area should know if it is allowed for your area, or you, or your parent's mortgage type. Then you may be able to access the equity with a Home Equity Line Of Credit (HELOC).

Good luck with it all! I hope this is able to launch your career into the real estate investing arena and that you are able to get rid of the mustache.

Honestly, it depends on the area. In nicer areas we are willing to put in more of those sort of things, but people that live in the nicer areas usually don't need as much of those things. 

But really, as little as possible that will still give me the highest rents.

Hey @Phil Schaff.

Welcome to the wonderful world of real estate investing! Always glad to have a more investors in these neck of the woods. It's really tough to be able to just give you broad advice without knowing what areas of investing you are looking to venture into. What interests you?

@Ryan Frey puts on an investor meet up regularly and we get together and chat about ideas.

As far as buyers first, I would say yes and no. When we are wholesaling, I don't typically try to cater to a certain buyer. I look for a good deal. If a deal is in fact a good deal, you will be able to sell it. Be accurate on your numbers and don't embellish them. Wholesalers are notorious for raising the numbers to make it look like a deal when it isn't. There is always room for interpretation of the information, but just make sure you can back your numbers up. 

A couple books that I think are fantastic are Crucial Conversations and Never Split the Difference. CC tells you how to approach a situation with understanding and what to say and NStD tells you how to do it while coming out of the negotiation with the your important aspects of it won for you. 

I am also an introvert and definitely get drained by continually talking to people, but that doesn't mean that we can't be exceptional at talking to people when we do talk to them!

Most people also calculate in saving 10% for CapEx, 10% for property management (if you are doing your own then people still calculate it incase they want to have someone else do it later), 7% for vacancies, and usually have the repairs at 10% instead of 5%.

I would say that you are missing calculating in some typical expenses. It's not a slam dunk deal, but I have certainly seen people take worse deals.