All Forum Posts by: Greg B.

Hi guys. I have been at this landlording thing for a year now. I began with 3 SFH already rented. Then I bought a vacant SFH and rehabbed it. Had it leased before I finished the cleanup. In Sept I bought an apartment house that has 4 units. This week we finished the rehab on the 2 lower units and they are now leased out. I intend to have the upper units finished and leased around the end on Jan. 2008. I am getting calls now from potential renters wanting to move into my units because mine are "the cleanest we have seen". That quote has come from several callers just this week. I like having people wanting to rent from me even though I have no vacancies.

My question is, what indicators do I use to gage if I am over rehabbing the units?

My intention is to have them clean and fresh. We normally clean, repair, and paint the walls off white. We repair any flooring problems and usually put down vinyl tile. We address any plumbing and electrical problems. We make sure the heaters and the A/C works. We don't put in any frilly items. We just want them clean and secure. Does this sound like I'm doing too much?

Greg

I agree with John. Also, in the interest of time, I want to uncover any negative info about a prospective property as early as possible. I would really not like chasing a specific deal for 4 months and then get a major surprise at the closing table.

Greg

Thanks for the welcome guys. Great to be here.

I bought my first property Sept. 2006. It has 3 separate houses on one lot. They are 3/1, 2/1, and a 1/1. Cost was 147K and I out 15% down. My local bank holds the note in a portfolio loan. This property cash flows about $135/mo. An OK first deal but they have to get better.

2nd property bought April 2007. SFH, 3/1/1, cost 49K and I put 5% down. Went through a mortgage broker and the note has since been bought out by Wells Fargo :crying:. I had people wanting to rent it as soon as I bought it. It flows $200/ mo. Not bad but I still wanted a better deal.

3rd deal is an REO. You can read about it in the REO success stories post. I would post a link but I'm not allowed to yet.

My first intention when I got into this REI was to buy and hold for cash flow. However, the more I learn, the more I see other opportunities. My goal is to get out of the rat race and occasionally turn a deal when I want to. I began with a time horizon of 7 years. That also has been changing with more knowledge.

Working on my latest REO acquisition. I still may flip it but right now I am progressing with renovation plans to get it rented out. Then I will either cash out of it with a refi or I will sell it. Then I hope to move on to a small to medium apartment complex.

Good luck to you all.

Greg

Thanks for the comments guys. FloridaREOagent, thanks for not taking offense. You REO agents are probably a great bunch of guys, just not the type of agent I expected.

REOs are a great way to make money and a great way to lose money. You, the investor, need to be able to do as much leg work as you can. Ask a lot of questions of everyone. Try to uncover any unknown information.

Example, I have had to go to the county clerk's office to look at a deed on a REO so I could find out about the hidden 2nd lien. I would have spent countless hours chasing that turkey if I would not have checked that deed.

Not all REO's are a good deal but someone still buys them. I have my criteria, that I learned from experience, and I hold fast to it no matter how good the deal looks on the surface.

Don't expect a lot of hand holding or anyone to stroke your ego. It's truly all on your shoulders.

Greg

I just closed on a REO last month. Details:

Older 2 story frame home
Divided into 3 rental units
Located in city just south of Ft. Worth
Quiet, older neighborhood with lots of rentals
Asking price $48K, was marketed as a triplex
I offered $30K cash
DOM 7
They countered $40K cash and a short closing date(10 days)
I was able to do my own inspections
Discovered 4 kitchens and 4 bathrooms.
Needs trees trimmed, roof, minor interior repairs and cleanup.
Should be worth $80K-$100K when finished
I uncovered a city lien against property for grass cutting(they had to pay for)
During title work a federal lien was uncovered(they had to pay for)
We closed on the last possible day at 4:00pm

Observations:
I used a buyers agent to represent myself. I have done 2 other deals with her and I know she works hard.
Listing agent was very little help. She would not return phone calls nor provide pertinent information to my agent. We could not find out the name or address of the title company to provide a deposit check to. She would not provide my agent with the lock box code so we could enter the property to inspect it.

We were supposed to close on Sept7 at 11:00am and I took off work to close. Their title company agreed to allow me to sign the papers at my title company. We were not provided with the HUD1. We waited by the phone until 10:30 to find out how much the final cashiers check should be made out for. We still received no communication from the sellers end at all. The closing time passed, still no response. We did not receive any comment from them at all until the following Monday. We finally got it closed at the last moment.

I have bid on many REO's and been successful only with this one. The listing agents I have dealt with are not the same personalities you deal with when they are trying to promote a property. These agents were very much "take or leave it but don't waste my time" type of people. Once I figured that out I know what to expect going in.

Good luck to all.
Greg

Hey all. I'm a REI that has just completed my first year of actual experience. I currently own 3 residential investment properties with a total capacity of 8 rental units. I am looking forward to learning from your past posts and exchanging ideas/ experiences with you.

Greg :groovy: