All Forum Posts by: Steve Christensen

What is the ONE thing I HAVE to do or place to eat at while in _____.
Pretty much the same as yours (#3), but feel the wording gets the mind working a little more.
Or, "I have one day / night in ______, what do I absolutely have to do / what can I absolutely not miss?"

That is insane @Lane Forhetz! I am so glad you were able to get this resolved.

@Jordon Nichols thank you for your service! I am not a lender, but my girlfriend served and was looking to purchase. It would be great if some of the lenders can correct this if wrong @Chris Mason and @Zack Karp...she was looking at multi herself, and was told that unless she had 2 years real estate/property management experience (which she does), she could not purchase a multi to rent to others.

Also keep in mind as one mentioned, you have to live in the property you purchase with your VA loan. If you want to put money down, ask your lender what other programs they have. Lately a 5% conventional, no PMI loan has been very popular.

Here was my idea for her, and again, I am not a lender, so it may not work - purchase first multi with the conventional 5%, after a year or so, purchase your next multi FHA. You will have to live in this one for a year. Then, purchase the SFR home you want to live in with your VA loan. You just built up 2 multi unit properties without having to put 20-25% as an investor would! Or, after that period of time, if what she was told was true, you can make your 3rd purchase a multi as well with your VA loan.

@Bosko Mijatovic it's all a matter of how an agent individually chooses how to prospect, and sometimes, a brokerage and / or team may have certain tasks you must do. 

@Account Closed said it best - the majority of agents are either part time or do not make great money. The rock starts do any of the following by time blocking with dedicated time to any or all of the following:
- door knocking
- cold calling
- open houses
- following up

^ That is a very basic, broad view, as you can narrow the above down tremendously. Some agents work strictly with investors. Some with land. Some only go after listings. Some only work as buyer's agents. There is no right or wrong answer. Just a matter of what you resonate and see results with.

Some brokerages might mandate office / farm hours, where you have to sit and answer general phone calls.

And then there are paid ways to prospect. Some call this "buying the business." Examples
- paying for zillow leads
- facebook advertising
- list sources / mailers

Just a few. To give you an idea of the polar opposites of 2 agents - 1 may love cold calling 300 people every day on a triple dialer, while the other would rather spend 2k a month for Zillow leads. Both could result in the same net commissions, but are totally different routes.

And then you could also start out on a team, where you are only dedicated to specific tasks, such as working as a buyer's agent and showing houses.

While I am not trying to be a negative Nancy, I highly suggest looking at youtube videos on what it really takes to be a successful real estate agent. Why? Because every broker you sit down with will tell you and show you how you are going to make 100k your first year. Unfortunately, just like getting your license, they don't tell you or show what it takes to sell to get there. And I think for many people, looking back, or if you asked them, would pass on what it really takes to be a successful agent.

@Carrie Nevins there has been some slight misinformation on here, in that there is no risk of a lien. In Missouri, at least in St. Louis, sewer is not a utility bill that "shuts off." In St. Louis, MSD would put a lien on the property at a certain point. 

When I managed over 144 properties throughout the area, the biggest thorn was the sewer bill. Mainly because tenants really did have major issues with actually receiving the bill. I'm not sure if I understood your post correctly, if she moved in last October, or recently, but it was not uncommon for there to be a hiccup in getting the sewer bill in the tenant's name in the first 1-3 months. Once they did, it was not an issue.

This is so bothersome, that I know many landlords that simply keep sewer in their name. It's typically a very low monthly bill. Going forward, you may want to do so, and just absorb it into what you market for rent when you have your next vacancy.

In the meantime, no one can really answer exactly, as @John Spurlock pointed out exactly - we do not know what is in your lease. We always had it in ours that tenants had to keep utilities on. Why? Health, safety, and for the home. Heats not on, pipes freeze. Heats not on, tenants turn on all 4 burners on the stove top and the stove. Ask me how I know :/

I'd highly recommend reaching out to the tenant and having a conversation. 

If you cannot get answers about utilities from the providers, schedule a walk-through, with property notice and per your lease, to confirm what is on or not.

Beyond that, check your lease, and either speak with your attorney, or seek counsel. You may be able to pay the utility, and charge the tenant. Then, due to non-payment, evict. If that is the route you choose.

@Ryan Carr glad to hear the passion has been renewed!

Self-management vs hiring out - either one is fine, depending on your circumstances. However, the most unfortunate thing I see in this business all the time is when someone turns over their investment to a company that simply does not do enough when it comes to managing.

To keep this post succinct, I highly recommend calling multiple companies and asking the questions from this great BP post: https://www.biggerpockets.com/renewsblog/2015/01/1...

I have managed a scattered site portfolio consisting of 144 single family homes and multi 2-4 throughout St. Louis, and then 1,000+ homes with a team between St. Louis and Kansas City.

It seems you are set with your agent, but if the agent does not specialize in investment properties, I would be more than happy to help.

I appreciate both of your feedback. Don't kill the messenger here! 

My friend is incredibly smart. Due to some changes in his life, he met with a Financial Adviser. The FA did not necessarily say "put your properties in LLC's", but asked how they were titled, and he said he was considering transferring them, IF he even can.

I read a few blog posts on this subject, and I feel it is biased to house hackers. What I mean is this - if you are obtaining a property with an FHA mortgage, no way around it, you are buying in your name. And that's what he and his wife did, at the time. But they've since moved on from those 2 duplexes.

In my humble opinion and research, I don't trust an umbrella policy. I've heard of legitimate suits from accidents on properties that far exceeded 1 million (I know you can get more). But, the policy does not prevent the suit to go outside of that. So again, in my understanding of research, couldn't they then go after personal possessions? I understand if you are living in your first duplex, renting out the other side, there's not much to go after. But at his point in life, there is.

So, if the property is in an LLC, they can only pursue the LLC.

I was also told that most mortgages have in their writing that it is 100% ok to transfer to a trust. I know this is wikipedia, but per the Garn-St. Germain act: An important consumer change was to allow anyone to place real estate in their own trust without triggering the due-on-sale clause that allows lenders to foreclose on a current loan upon transfer to another. This greatly facilitates the use of trusts to pass property to heirs and minors. It may also protect the property of wealthy or risky owners against the possibility of future lawsuits or creditors, because the trust owns the property, not the individuals at risk. The bill states "... a lender may not exercise its option pursuant to a due-on-sale clause upon ... a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property[.]" (The Garn St. Germain Depository Institutions Act of 1982

Now, if you assign the beneficiary rights, I believe this can trigger it. So then, I have to ask, if you simply transfer your property from your individual name to a trust, and keep your umbrella policy, would this be the best of both worlds? I am not very familiar with trusts.

@Joshua Harger and others on this post, just food for thought from someone who worked for a company averaging 100 purchases a year in the St. Louis area...

A few mentioned being on lists, which is a good idea to do, to see what is out there. However, anything that hits a list probably is not a deal me, you, or anyone else who commented on here would want. Why? Couple of reasons, that have already been mentioned. But I think the biggest driving factor right now, is the market. If you can get a property under contract at 70%, close and take title, and then list in the MLS or blast to your list, due to the low inventory, it will sell. Worst case scenario, the company that bought at 70% (or whatever percentage purchase price made sense), can back it into a rental.

So, if you don't want to acquire yourself directly from the seller, which is going to be one of the best ways to get deals, you are going to have to find and become the good wholesalers best friend. Just to give you an idea, the guys that run the companies buying 100+ homes a year, they are calling wholesalers every week, asking them what they have. They want to get ahead of the email blast. They want to offer on every thing they are working on or have under contract. And if they are lower than asking, a good wholesaler can go back and negotiate. I'm not a fan of it, and have never done it, but sometimes it is the case. Some might be saying, why as a wholesaler go back and negotiate? Well, the bigger companies have proven that they really are buyers. 

Many say they want the real deals from the wholesalers, but how many of them have actually bought homes or multi? How many have bought multiple homes / multi's a month? You start to really see who is for real and who is pretending. 

Which is why a lot of deals are never seen in email blasts, because they are going to the real buyers. My old boss had it a part of his weekly agenda to take out 2 wholesalers every week. And he did it. Out of 100 homes, do you know how many came from other wholesalers? Somewhere between 60-70%. The remaining was direct mail, SEO, yellow pages, and miscellaneous referrals. 

Outside of that, my only other two cents...I'm baffled if you want north county / rentals, north city, etc, you don't need wholesalers. There are plenty of deals on the MLS. I laugh when someone puts out a north city "deal." I have a buyer who consistently buys in 63115. I am getting to know it pretty well. We've averaged buying property at 8-15k a door. And "wholesalers" put out these deals higher or same price as what is on the MLS! You can throw a rock and find deals in north city. Not most people's cup of tea, just as an example.

Now, if you want a rehab in retail markets, you will not find that on the MLS. Foreclosures are going to owner occupants before it's open to investors, or they get bid up.

No matter what route you go, you've got to creative, and the tried and true old school methods still work.

@Ray C. I have interest, did this get started?

I have a friend with a few properties who bought in his name with an umbrella policy. Now wants to transfer to an LLC. Mortgages are with Chase and US Bank, and they are giving him the run around. Is there a way to do this without initiating the Due On Sale clause?