All Forum Posts by: Rob Soete

There is a steep learning curve that comes with investing in St. Louis City. I've seen more than a handful of investors who have lost their shirts because they took what a wholesaler told them at face value. Property values vary greatly across neighborhoods, and if you don't understand the push/pull factors for specific neighborhoods/municipalities,  you will get burned by either overpaying for something, or by over/under improving a property.  Just remember the house you buy, is the house you have to sell. 

 I understand the mechanics of what you're saying, and have used the escalation clause a lot myself on the buy side with less experienced listing agents. That being said, the escalation is only triggered if the contract is accepted by the seller. If the seller counter offers at the ceiling of the escalator instead of accepting, 9 /10 times the buyer isn't going to walk and ended up paying every dime that the escalation clause was trying to protect. Just my thoughts. It works, but not on the more experienced sellers/listing agents. Helpful tip for those unaware of it though. 

A smart listing agent just counter offers at the escalated priced. Just because a buyer's agent submits a rider/addendum on a contract doesn't mean the seller has to accept it. I've had a number of listings in the past with multiple offers and all had escalation clauses, and both buyers and their agents seem to have an impression that by saying they're willing to pay more for a house without actually offering more for the house that their offer justifies acceptance from a seller. 

It's also important to make sure you use your agent's board approved forms and not just print this one off of bigger pockets. If your board doesn't have a board approved escalation clause rider, then just write it in the special agreements section of the contract.

Working with a seller of a multi unit building, and it just came out that he signed an option contract on the subject property a few years ago, and the optionee, has never exercised his right to purchase. It is a very poorly written contract with a 1 month continuous term so long as the optionee pays on time which he hasn't. Nothing was ever recorded within the county, and title insurance will not cover something that isn't public record. My question for everyone who sees this, is what should my next step be? The seller has sent certified mail to the optionee notifying him that he is terminating the option contract. 

What are some of the documents needed to organize a syndicated real estate deal? I've got a list of investors that have asked me to spearhead their investments in my area, and I'd like some advice on where to start. Thanks ! 

This may come across as a dumb question, but does a mortgage transfer with the house if it is transferred into a living trust? Given the owner is willing to move, and owner occupy every year, If the property was financed through FHA, and was transferred into the trust would they be eligible for another FHA mortgage?

Just a thought, and possible strategy if dropping 10% on a down payment is difficult for someone.

This is my first post as a homeowner/investor. I recently closed on my first house and investment property, a triplex that I am owner occupying. What are some recommended ways to finance a second property? Does anyone on here have experience refinancing out of FHA ?

I'm a 22 year old, and am looking to scale my investments as rapidly possible.

My home appraised for about 16k more than I purchased, and the neighborhood I am in is expected to see a 5% rise in value this year. Would anyone cash out after the loan has seasoned?

Any advice would be very much appreciated.

Rob