All Forum Posts by: Shmuel Harris

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Nick Ladesic Interesting question. I've been toying around with a few options similar to this. If I understand your question correctly, the first thing to determine is does he want to function as a bank or as some form of equity partner? If he wants to be a bank, ask him how much interest he wants. If he wants to be an equity partner, you have to ask yourself if what he asking for from the profits is worthwhile or if you should just work with a hard money lender. Sam H.

Komlan K. Find out what the ARV of the property is. Find out the amount of work the property needs. Find out how much $ it will take to get tenants evicted. Decide how much you want to make on the property. Subtract it all and make an offer. Sam H.

Chris Farrugia Thank you so much for the response. I am going to take a look at his channel. Anything specific in his methods that makes you say that? I want to know what to keep an eye out for. Sam H.

Christy Holt As a realtor/investor, I wouldnt advise you to make that step right away. If you are asking for feedback on an offer, your realtor should try to get you that information so you can be a more informed buyer. That being said, I have been outbid many, many times on offers with my buyers. It's the name of the game. One of the things I keep reminding myself to do is submit all offers with a offer acknowledgment and acceptance form. With my MLS, this Guarantees the buyer that their offer was submitted to the seller himself and not just to the sellers agent. Other than that, the only thing I know is that if you are submitting an offer through a buyers agent, and your offer is going up against a similar offer directly through the listing agent, you will most likely not be the accepted offer. It's simple math that the listing agent will do everything that he/she can to get the seller to accept their offer. More commission going directly to them. At the end of the day though, if you are feeling like you aren't being represented appropriately by your realtor, and you don't feel like you can work it out, then maybe it's time to move on. Hope you figure it out with a positive ending to your story. Sam H

Hello, BP. It's been a while since I've last posted anything. Partly due to the large amount of time I have been putting into my work in the RE field. I started working as a RE agent about a year and a half ago and have had success, Thank GD. I have been approached by Zillow, my main lead generator, about signing up for coaching with Tom Ferry. I would really like some helpful feedback from the BP community, who I have come to trust. Has anyone had any experience with the Tom Ferry company? Have you felt like you wasted your money on them or did you see an exponential return? What did you like and dislike about their system? What advice would you give someone who is considering signing up for an expensive coaching program? Any and all feedback would be appreciated. Just please keep it honest. Thanks, Sam H.

@Kristopher S.

This happens a lot here in Brooklyn, especially Brownsville. I would be representing offers on 4 families for regular end-users and at a certain point I knew the seller or sellers agent would tell me that they have multiple cash offers and if my buyer wasn't cash to not waste my time.

I would go with what others on the board have suggested and get in touch with a few different HM lenders to see what they can offer you. Was this an investment or an end-use purchase?

Either way, if there is value in the property, and the numbers make sense, you should be able to secure a HM loan to the property with 20% to 30% (I don't actually know the usual amount, but I know a few HM lenders for you to call if you are interested) of your own money in the deal. Then refi after 3 months. 

Bit of a tricky question.

I think the most important question is what are you interested in doing?

Has the hassle of keeping the property become too much for you?

Is it too difficult for you to manage it from the West Coast?

If you are cash-flowing negative though, then you should really ask yourself how you are benefitting by keeping the property. You would be better off with the money sitting in a bank account than paying to keep the property.

In terms of the market, now is definitely a very strong sellers market. You will be able to command a higher price now with more offers and options than in the past. That doesn't mean that you will not be in a similar position in the future.

Now, this is what I consider the tricky part, considering the fact that you are in a sellers market now means that if you are looking to put that money into another property, you will be paying more than if you waited for a buyers market to come around. The option of selling now and waiting to buy might be a solid option except you will not be able to do a 1031 exchange, which may not be a problem since you have lived in the property for 2 years. Depending on where you live though, you very well may be able to find a property that will be cash flowing positive for you, which should be one of your goals.

Also, have you been looking in your local market at what your options are there? 

It is always a good idea to make sure that you have options before proceeding with a plan to sell.

That being said, without any more information, it definitely sounds like a good option would be to sell and figure out where you will be putting the money.

Either way, you are definitely doing the right thing by asking the BP community for feedback. Some of the best real estate minds are here, and they are willing to help.

Also, because BP is also about networking, I don't deal with listings in Manhattan, but I do know a very well qualified Broker that I could refer you to if you are interested in getting an Estimate.

Sam.

Just some advice. I have been working with a client that pulled out close to $1 million of equity from an 8 family he owns. Long story short, a year later, the guy still had not purchased another property and was paying interest without any valid reason for it. Speak with your banker/broker about the possibility of starting the process without pulling out the cash until you locate the property you are going to purchase. It may complicate the situation, but at the very least, identify where you will be putting the money and have a very good idea of when you will need it. Maybe you can avoid this other guys mistake.

Sam.

@Winterfield Jajoute

Hello,

I work in Brooklyn and know of some people that have done condo conversions. They may be willing to work with you. I think the bigger concern is the fact that your apartments are rent stabilized. It is close to impossible to get your apartments vacant if the rent these people are paying are low enough.

Feel free to reach out to me.

Sam.