All Forum Posts by: Paul Haviland

The best aspect of being a residential realtor for buying MFs is the relative flexibility. I was working in healthcare IT previously and traveling 3-4 weeks per month. Now, I'm able to be local and act quickly if/when necessary. I generally think being a realtor of any kind part time is challenging. I also believe that I still (at 30) am barreling some ageism in the business. I think it could be worse in the commercial space. Of course in either, the key is to prove to your perspective client that you have value to add to their search/situation. Ultimately, residential real estate sales is not easy work, the rewards can be amazing, but you have to be willing to work hard and often. I would rather recommend that you follow a true passion and continue to allow RE to be the asset you allocate your savings to grow long term wealth.

I think that is great advise, the PM side of the business is one of the most important to long term success. If you are in a college town, there is likely a large amount of seasonal turnover. PM companies will often augment their staff with extra leasing agents. What better way is there to learn what tenants are looking for in a rental in your area?

Agreed. In an ideal world, you have the property you are exchanging into already under contract when you sell. It's amazing how many people miss the 45 day deadline.

I apologize for the length of the post, I often don't post because the details matter and I don't have time to provide my full thoughts. Hopefully this is helpful...

First, congratulations on accessing Seller as an equity source. It is highly underutilized source of funding. Also, I'm impressed with your intent to realize that every change to a deal is an opportunity to negotiate.

I have quite a few notes that were held back by sellers, but haven't yet tried to access the equity I've realized via appreciation or "purchased equity", so judge my advice knowing I've never done this.

From my experience, information is power. I wouldn't share that you intend to refinance until absolutely necessary. I would start the conversation with both parties by asking if they need/want any or all of their capital back in the near future. That would allow you to identify their motivation if any. Assuming they don't have any motivation for a payoff, I would then (a different call/meeting) let them know that you are likely going to refinance, and ask what their intentions are with the money after you return it to them (at this point, you know they don't want their money back, and as other have said are probably pleased with how it is performing - 4.625%) I would possibly renegotiate the rate, and even possibly go up in rate if I could move one of the loans (or a partial loan) into secondary position on the other property. Depending on the relationship, you may be able to get a greater LTV on the single property than your bank/portfolio lender would let you go. This would allow you to ultimately yield greater cash-out than your initial plan, and likely better loan terms.

Another thing that would help the above scenario is if you were able to do partial payoffs (with discounts). If neither of them want you to pay them off fully, you could possibly pay them for example $20,000, but obtain a reduction in principal balance greater than that, say $22,000.

Ultimately, understand the goal (I think it is to access additional capital – approximately $56,000 if your portfolio lender will take you to 75%LTV), but don't get attached to the method. I also loved the idea to keep these people for future deals/funding. That is priceless.

Cheers,

Paul

Hey there Glenn - Good to see you here, and to learn of your accomplishments outside of Investing. Every time we have met, the conversation has been geared almost solely towards real estate. Excited to have your season opinion here as well. Cheers, Paul

Welcome and good luck. There are many great folks and information on this site. Also, you will find the numbers tough but people nice in the Madison investing scene. Cheers, Paul

Welcome and good luck! The first property is the hardest. Overcome that hurdle, and then continue to grow the "snowball". Cheers!

I would be open to another good beer with good people.

Someone with MLS access should be able to compile the selling agent (buyer side) for any given property. You could have someone run a search specifically on this persons listings and see how often he has the buyer. Alternatively, just use the properties you are aware of. The other important and potentially telling thing would be to see how high the ultimate selling price was vs. your offer. Of course, even if he does have the buyer on most or all, that is still just correlation and doesn't prove anything. To the question of is it ethical for him to disclose the price of your offer so his buyer can offer just a little more, it is not ethical. In most state license law prohibits disclosing any (some small exceptions) information about another offer until it closes and then some items are made public. Good luck.

Congratulation on your success.