All Forum Posts by: Justin B.

I have experience buying more than 1 property at once, but not 11.  I've found that once you own properties, portfolio loans become more realistic.  But when buying, without something creative (outside of normal banks), I haven't found any banks willing to loan without it being 11 separate loans (with 11 separate closing fees, etc).

Private lending, lines of credit, etc are the options you need to look at if 11 separate loans isn't what you want.

Just based on the fact that it's priced in the median range already AND it needs major renovation (My assumption is you are talking $50k-$100k), if the seller isn't willing to come way down, it wouldn't pass my 5-minute test and I'd walk away.  I only read the first post, so unless you provided more info somewhere in the thread that drastically changes the scenario, I'd walk.

Local and Statewide banks (besides private lending of some sort) are the only real options in my opinion.  Any bigger and I doubt it.  I'm making an assumption that ~$50k is WAY below the median home value where you are.  In MS, for example, that's not too far off from the median home value in some places and you'd have no problem.  In Washinton DC, for example, it would be much tougher.  It's not impossible anywhere but the farther below the median home value you get, the tougher it will be.

That's a question that needs a LOT more info.  The things that come to mind off the top of my head besides why they are late:
-- What's the payment history like
-- Did their job status change
-- Is $500/month low-income housing in the area or more median rent?
-- How hard is it to find renters for the property?
-- Is it a good area (Kind of a follow up to question 3)?

I'm sure there are more questions that I'd have with more time to think about it before purchasing.  Going off of just what you posted, I'd say no, but before that would turn into a yes, I'd have to know why the situation is what it is first.  I'm sure there are plenty of valid scenarios where I would do it.

Someone may have mentioned this.  I didn't read all 70+ replies.  Keep in mind why we got in trouble in 2007.  I'd venture a guess that a lot (I want conjecture as to a %, but it's probably higher than we think) of those people really can't "afford" it.  It's the same with expensive cars.  Different people have different views of what they can afford.  Some people have a really nice house and/or car and spend every cent they make every month on it, foregoing any type of investing.  That means ANY negative change in their situation and it's all at risk.  It's not just the "poor" who live paycheck to paycheck.  Back in 2007, I was approved for a loan for my primary residence that was double what I actually bought.  Had I bought a house at the level I was approved, I'm not sure how I'd eat or do anything else, but yet I was approved for that amount anyway.

I look at it a different way.  Whenever I see someone with a really nice house or car, I often find myself asking "I wonder how much debt they are in and can they ever get out?"  Sure, there are plenty of people out there who have these things and it's a small % of their income because they are truly rich, but my gut tells me that's not the majority.

Well, people have covered the ways to sell already, but just to answer the basic question, it depends on the cash flow.  If your cash flow now is more than you get with new properties using the ~$300k you would get from selling, you keep it.  At least that's the way I look at it.

You can also refinance if possible and take the cash free money and purchase more property as well.   Won't get as much cash as selling it, but it's tax free until you do sell.

This thread has really gotten into 2 separate points.  The first being disagreeing with your realtor.  Often times realtors (good ones) offer up a price they know will sell and be comparable with comps.  They want to make sure that the appraisal is going to come back at a price that won't derail the deal.  The good ones know what they are doing.  However if you are WAY off, you have 2 choices.  Get another realtor or go it alone.

The other one is your realtor doing a good job.  No communication for weeks is not the mark of a good agent (usually).  Regardless of price, is they are not communicating and taking weeks to do things, I think it's time for a new agent.

I've bought a lot of deals without an agent.  Agents do come in handy sometimes, but other times aren't necessary.  It's not uncommon for sellers to want to go direct, otherwise fsbo.com wouldn't exist.  You DO however need to ensure you do everything correctly.  Use a title company, do due diligence, etc.

I don't see any reason to have 1 bank account per property (unless you're talking big properties like a commercial building or large apartment complex). That would be far too complex if you had 10 SFR's for example. You DO however have to do accounting such that you can itemize each charge/deposit and know which property everything is for. And if you use the same PM for all of them, they are most likely going to give you one big deposit with a report so you know what goes to which property.

Depends on a lot factors.  Sometimes it's spot on and other times it's way off (in both directions).  BUT, it is an ok starting point and a reference.  If you base what you're doing solely off a Zillow estimate, that's obviously a bad idea, it's just another point of reference in your research.  You'll discover pretty quickly if it's accurate or not when you find several sources for reference.