All Forum Posts by: Troy Owen

@Ben I. When I write offers for myself or clients, I select that Sellers 'may not' be allowed to make repairs.  It's easier to change it later if you decide to let the seller make repairs.  It can be difficult to make that change in reverse.  If you were going to walk away after the inspection your agent should have sent the Cancellation and Mutual Release along with the Notice of Defects.  Hopefully they did that for you.  Also, just because an attorney calls you and tries to scare they cannot force you to do anything; especially if they haven't filed suit.  If you didn't do anything wrong, tell the attorney to pound sand!  If they actually file suit, then you will need to contact a real estate attorney.

-Troy

@Scott Rogers In my experience, I don't think renting out units below market is a "thing." When I see cheap rent it is generally not someone who does real estate investing full time and they trade low rent for less vacancy, less turnover.  Additionally they may not be paying close attention to the current rental market and are asking rents that are similar to what they've charged in the past.  If it's not that scenario, there's a good chance the price reflects the condition of the property. Said differently, its probably a dump!

-Troy

Hey Spencer do you have time to talk today?

-Troy

Hey Stephanie it depends on what type of property you are looking to purchase. For instance, if you are buying a 1-4 unit building and you want to get a 30-year fixed rate it will most likely have to be held using your personal names. If it's larger than 4-units you won't be eligible for a 30-year fixed rate and the bank will not have any issues with you titling the property in an LLC. If you can put it in an LLC, great. If not, there are ways to deal with the liability when titling properties in your name.

-Troy Owen

Whoever is on the lease needs to meet those requirements.  If they are not married and one of them can qualify on their own that is fine.  If neither can meet the income requirements on their own, they both need to be on the lease (assuming they qualify with both incomes).  Whether or not they are married, they are both still responsible for the payment of rent.  That holds true if one of them moves out.  If they are both on the lease they are responsible for 100% of the rent.  The percentage of the rent each person pays is irrelevant.  All that matters is the rent is paid in full for the duration of the lease.  At the end of the day you can have problems whether they are married or dating.

-Troy 

Mike have you applied for financing at the sellers bank?  If you get a loan from the same bank there is a much better chance of them waiving the penalty.  There is a good chance he is using Waterstone Bank and they love them some pre-payment penalties!  The easiest solution would be to ask the bank to waive the pre-payment penalty.  If he only has one property with them it may not happen but if he has multiple properties there is at least a small chance they will drop the pre-payment penalty.  If you are getting a good price on the property it may make sense for you to pay his pre-payment penalty. A 2% penalty on a $200,000 loan is only $4,000.  If you pay an extra $4,000 or meet him somewhere in the middle, is it still a good deal?

-Troy

Attorney's always make changes.  It's just what they do!  You could show that contract to 5 different attorney's and every one of them will suggest changes.  I don't like to over-complicate transactions but if you aren't experienced in this area, I would consult your own attorney.

-Troy

William, there are pros and cons to every market.  Some areas make it easier to succeed than others but I don't believe there is a perfect place to invest.  There are drawbacks to every geographic area, investment strategy, etc.  I like the idea of getting started locally when possible.  Looking at your pros and cons: there are plenty of deals that cashflow in Milwaukee.  Houses are older the closer you are to the City and they get newer the further removed from downtown you are.  I don't believe finding a PM, team, etc. in Milwaukee is any more difficult than any other city.  If you need help or contacts; I'm happy to help where I can.

You also said in a later post that you are looking to stay in Milwaukee long term because you don't have the career options for your line of work in KC.  IF you invest in Milwaukee and are concerned about the crime you need to look into that further.  Just because the crime statistics are awful in Milwaukee, that doesn't mean every neighborhood or suburb is a high crime area. I believe there are some crime maps online which can help you decide which neighborhoods work for you.

-Troy

@David Miller I purchased 2 buildings near 107th and Good Hope in the past year.  Message me if you need info/insight on that area.

-Troy

@Steven Story  Know your numbers and make sure you can absorb some additional expenses for unforeseen problems.  If you handle this financially, great.  If this project is too big for your first investment, just remember there will be more deals.  It's unlikely this is a once in a lifetime deal.  Any of us can give you advice on this deal but at the end of the day none of us know your personal financial situation.  If you need any help (i.e. determining if your income and expenses are realistic) feel free to message me.

-Troy