All Forum Posts by: Ruth Lyons

@James Gibbons While it is still officially still a sellers market, I do see the tide turning.The best deals still go to cash buyers And it’s still difficult to find deals, but I do expect an uptick in foreclosures starting in the Fall which will increase the inventory and force prices to drop. Unless you know what you’re doing, flipping is a lot more risky than buy and hold. It’s a lot easier to lose money than to make money in Flipping. Nobody can predict what the market will do, but it makes sense that after the mortgage forbearance is lifted, foreclosures will flood the market. It probably makes the most sense to be patient and wait for deals. I just finished my second flip this year, both properties were acquired through wholesalers, but even the price of wholesale deals has gone up so you need to do your due diligence and negotiate to get good deals.

@Daniel Alfandre I had a tenant with a BHRP voucher a few years ago. The rent was always paid on time by the County, and I was able to charge a little higher than market value for the rent. The tenant, on the other hand, was a nightmare. She sublet to two men who smoked pot, irritated the building residents, put major stains in the carpet and broke the sink faucet. She denied all of this, of course. I am not generalizing, by any means, about the tenants in the program. I’m just saying that you have to do your tenant screening carefully, of all tenants. Do not assume that the voucher programs does any sort of screening for you.

I'm a Md-licensed agent and sell my own flips. 

I don't take a commission on my own deals and create that taxable event, but I do pay my broker his share of what the commission would have been, which is 20%. For example, I'm selling one now for $285,000. The listing commission would be at least 2.5% ($7,215) total to my brokerage and my personal commission would be 80% ($5,700) of that total. On the closing documents, my brokerage will get paid 20% of $7,215 which is $1,425. All real estate deals belong to the broker. While I'm both the agent and seller of my own deals, I can't use my license individually, per MD law. 

@Samy Nabhani Perhaps suggest such an arrangement to your broker on your next deal. 

@Account Closed Hi Stephen. It's not at all offensive. I always offer it as a courtesy. And sometimes it's a great solution. In fact, I have one tenant now who is saving to purchase the townhouse where she lives in and I'm putting part of her monthly rent aside so that she will have $5000 in downpayment in 30 months. 

However the majority of the time, the tenant won't qualify for a mortgage so the right of first refusal is moot. I don't think we need more regulation. Jeez, we already have to jump through so many hoops of government interference with good business practices. The answer to most issues is NOT more government and laws, based on my experience. When government gets involved, things slow down and cost more. 

@Joe Norman Correct. This is a Baltimore city law and I believe it also applies in Montgomery County Maryland.

You should check with a title attorney to be sure as laws are always subject to change, however, I believe this first right of refusal only applies to Baltimore City, not the County: Under Code §6-1, before title to any single-family residential rental property is voluntarily transferred, the tenant of that property shall have the opportunity to purchase the property on terms considered reasonable in the residential real estate market.

I would advise him to give the tenants notice, move them out, take care of deferred maintenance, paint/carpet and sell the properties vacant. I work with a lot of investors and it's my experience that most investors do not want to inherit tenants when they purchase a property in Baltimore county. The property doesn't show well with tenants and it's way more risky to buy with tenants in place (A LOT can go wrong before, during and after the process). I worked with one investor trying to sell 2 properties tenanted a few years ago. Both tenants were unhappy about the potential sale and sabotaged every showing. 

LOL. Too funny!

Stephen Kehoe is a local property manager and BP member. He's based out of Columbia, MD

Agree with the comments on this post. I'm an agent licensed in Maryland where you must work under a broker who ultimately has responsibility for the actions of licensees and you must belong to a local association and pay dues to have MLS access. While I choose to attend sales meetings and often seek advice from my broker who has been in the business for 30 years, there are a few other agents who do their own thing and it's ok with my broker.

I, too, congratulate you on your ambition and the savings you've accumulated! It's certainly easier to qualify for a loan with a w-2 job but not impossible. The big banks won't even consider it. I recommend you call David Bond or anyone at Trius Lending Partners. They are a local and reputable private lender who understands real estate investors. You can google the phone number.