All Forum Posts by: Shannan Bowen

Hello All!

Let's talk about IT!

A few years ago, investors were sticking to a purchase range of about $50K-$70K. I'd even say up to $85K but most times, staying graciously under $100K per property. Today, I'm seeing a range of $150K-$200K. Obviously, this change is due to the current COVID pandemic. To be clear, this didn't just come from distant observation but from investors that I previously and currently work with.

Although, as a Realtor, I prefer to stay on the investment side of things, I do take on an occasional residential buyer. Unfortunately, for my clients with less purchasing power the current climate is making it extremely difficult for them to purchase a home that they can afford and at best, "like."

I currently have a client with a $170K FHA pre-approval. With the exception of two or three options, every single one of those sellers were not interested in making any repairs or updates that even makes their asking price reasonable.

What are your thoughts? Any strategies you can offer?

@Russell Brazil lol the disaster wasn't really the $600 for me. The disaster for me was not being able to my clients reimbursed and losing my cash clients because of it! My commission off of each property was a few $k each. So in the long run, yea... it was a disaster to my business and as a newer agent at the time.

@Wayne Brooks LOL I will refrain from adding additional "compliments" as to my investors (Wink). The title company did a search but never have they mentioned a "city title lien" search and theur suggestion was to have my investors go after the pervious owners.

The hidden fees were VACANCY fees. It differs from township to township here in New Jersey.

Thank you for that information. I'll be sure to store that in my bank!

Hey BP Family!

This is for all my fellow RE Investor Specialists & RE Investors...

I was working with a faithful and very diligent property investor here in South Jersey. They did thorough research on the property interests, including contacting the township to inquire about any vacancy fees, unpaid water bills and such. I, followed up and contacted the townships as well to confirm that there were no unpaid fees owed by the current owners. We were told NO on every single occasion. The sellers even denied owing any unpaid fees and balances. Long story short, we closed two properties 15 days apart in the same town, on the same street a few houses apart. After we made settlement on the second property, within 30 days my investors received a balance due notice from the township for a total of $1200!!! $600 was due on each property. As you can imagine, my investors are livid at this point. Let me go back a second, there was a $50 unpaid water bill that my investors were unwilling to pay so in order to save my deal, I reimbursed them myself. Fast forward, had they known about this $1200 debt they probably would've walked away.

Now, I did my due diligence. I met with my broker, the title company and even called the REC. The only response and resolve I received was this; those debts should have been forwarded to the sellers and your buyers will have to pursue them for reimbursement! What a crock! Is that legal for a township to "hide" debts they are certain the sellers won't pay and then bill the new owners?

My question is, has anyone ever had this problem? If so, how did you get it resolved?

What other issues have you run into as an agent for an investor or as an investor?

Oh... and I lost those investors! Although they acknowledged that the fault wasn't mine, I was charged with being guilty by association!

@Brian Ellwood First, thank you for your willingness to share your overall personal experience with investing. This industry is very "competitional"  and cut throat. As an R.E Agent I experienced that first hand, unfortunately. Secondly, this is great foundational knowledge for "newbies". Something that seems so complex has been given simplicity! Strategy is key and although failures are inevitable, I would much rather fail forward than backward. 

As I prepare to move forward in the investment world, I am reluctant to open my networking circle. However, I believe that you would be a great attribution to my successes and I am hopeful that I could be the same for you. I'd love to connect & conquer!

Thank you again!

@Tyrone V McCloud this is a great read and much, if not all, can be applied in our foundational growth.

@Bob Green thank you for sharing. And yes I'm big on using referrals.

@Marvin McTaw, I am aware that, ideally this would be the picture perfect scenario but let's just say I don't have that option. However, everything you've said makes sense and if I could this would have been my first choice. I'm new to real estate investing but I have other businesses and have explored those options before.

@Odie Ayaga Thank you. I'm going to look them up.

@David Weintraub I'm actually an agent @Berkshire Hathaway in Turnersville. I plan on starting out in Gloucester & Camden County and then at some point integrating the PA market. 

@Marvin McTaw,

if it's one thing I learned, it's never to mix family, friends & finances.

Hi All!

I'm looking for recommendations for hard money lenders, gap funders and other sources of funding that are "newbie" friendly. I have gathered some information but would like to do a bit more searching before I make any solid moves.

I'm looking to begin my investing journey in New Jersey and will work my way into the PA market.

Also, If anyone can provide some do's & don'ts of first time investing, would be greatly appreciated.