All Forum Posts by: Patrick Hermans

Does anyone in the MA area know of a non-conforming loan option for owner occupant 2-families, that could be used as an alternative to going FHA?

In the past, I've gone through a local credit union to buy an owner occupant 2-family at 5% down. It worked out to be a great way to avoid getting crushed by the monthly PMI. I'm not sure if others out there have found similar programs, but any recommendations would be greatly appreciated!

@Brock Mogensen If the agent you sign with is dynamite than its a good thing, but if you sign an exclusive contract with an agent who isn't great with investment properties, you're kinda stuck. Or you at least have to have a very awkward conversation in order to get out of it. 

@Chris Jensen If a seller goes FSBO, they are essentially saving money by putting in the work to sell on their own. If you have the time, energy and you understand the process, you can definitely go FSBO. Just be very careful not to overlook any of the legal points and be quick to hire professionals who can make your property more desirable. The Market is hot, so if you price it accurately you might be able to sell quickly, but if it sits too long buyers will start to think something is wrong with it.

@Account Closed If they own it free and clear you can try to work out a seller financing deal

@Cameron Wright Unless he has an unlimited supply of money or you know for a fact that you wont have any free time to take on a project of your own, I would never sign a non-compete. 

@Shane Boyd Probably for the same reason you didn't flip during your first 14 years as a home inspector lol! I also find that a large majority of realtors don't like working with investment properties (there are many reason why that is), so they don't necessarily have the skills to pull off a successful flip.  Another reason may be that a lot of realtors are busy faking it until they make it and putting their own cash down on a flip to try to fake it, isn't something most people are willing to do. 

1031 exchanges are a way to differ the taxes on your capital gains, so theoretically you can do a 1031 as soon as you have gained any equity in the  property. However, you'll only be pushing off the taxes on the appreciation, so even if you were actually saving the money, it would take a long time and a large amount of appreciation to outweigh the costs associated with selling and buying. 

I've been working with a lot of investors who were buying multifamilies for cashflow around the country. Memphis, Houston, Chattanooga, Tampa, Jacksonville, and Indianapolis have all been targeted, but the agents in Dallas seem to be the only ones who can find quality cash flowing properties. Is this because I just happen to know good agents in Dallas or is the market there just that much better than other cities? 

@Eric James you're absolutely right. The problem is, owners want to make as much off of the sale of a property as possible. This makes it hard to find a very good deal. Think of finding a good deal as priority number one and then you use all the other strategies to make the good deal even better

@Ethan Aycock I couldn't agree with @Kevin Brown more. If you go with an all commission job, you'll have to wait at least two years before you can get financing for any deal.