All Forum Posts by: Sierra Potts

Hello! I'm super new to this whole real estate investing thing but I'm immensely intrigued by it I know for a fact that this is my future. I take my agent exam October 6th and I'm going to use all of my profits to put towards building a rental property portfolio to reach financial freedom. I even got my boyfriend on board. He has about 4K saved up. We qualify for an FHA 3.5% down loan for a house hack. My mom said she would give us the down payment. We qualify for $200,000 max and want to find a duplex. We live near Fort Wayne, Indiana in the Midwest. Here's the issue - I look every single day twice a day and the market sucks for a buyer and even worse for an investor at the moment. There is nothing out there! What can I do? Any advice would help. Thank you.

Thank you so much for your quick response. I really appreciate it. I honestly don't know what double closing is. From my understanding of basic YouTube videos, after I found a seller and agreed to a price, I would obtain a basic purchase and sale agreement and sign the contract with an assignment clause where I sign my name "and/ or assigned" and then later sign to a potential cash buyer. As far as I know, this is the only thing I have to do legally. Then, I would use an assignment contract with me and the cash end buyer. I was also told to find an investor friendly title company to perform a title search. 

Yes I planned on doing A (seller) to B (me) and then B (me) to C (cash buyer). I definitely planned on letting the seller know that I will not be the one purchasing the property. Do you have any advice script wise on what to say to them in a way that helps them understand the process and not scare them away or think its some scam?

So, in a nutshell, the end cash buyer won't know the seller information because they wont have access to the original purchase and sale agreement, just the assignment contract between me and them, correct? Just want to make sure I am understanding this whole process. Please let me know if I am leaving anything out. 

Thanks again!

I have been wanting to get into wholesaling. After looking into it with many youtube videos, etc. I feel like I have a pretty good grasp on the process but one thing is confusing. So lets say I find a motivated seller and a cash buyer. I have the seller's home under contract and the purchase and sale agreement signed. When I present it to the cash buyer, what is stopping them from contacting the seller directly and cutting me out of the deal as the middle man?? Is there anything I can put in place to protect myself from that? Also, is it un ethical to not give the cash buyer the name of the seller or other information to prevent this from happening? 

Any responses appreciated. Have not done any deals yet but still working on the learning process and want to begin very soon. 

Thanks!

Also, I used rentometer to check how much I could charge for rent. It said $1,100 so I ran my income as $1,100 for the house hack and then a second time as $2,000 just to be conservative.

Hi Jaysen! Thank you very much for the reply. It would be a house hack with hopefully (haven't checked with banks yet) an owner occupant loan which I do believe is a 3.5% down payment. I ran the numbers as only receiving rent from one of the units because I do plan to live in the other. My analysis reflects one of the units rented. I ran it both ways. This is the info I put in. Please feel free to correct me if I am wrong. I used these #s from a Brandon Turner webinar. 3.5% down payment 30 year loan 3.6% interest rate 7% for repairs (Brandon said between 5-10% depending on newness of property) 5% vacancy 8% cap ex $65 property tax $0 electric, garbage $30 water, sewage because I googled it for this city and that's what it said. Is there a better way to find this out? 7% custom expenses $66 monthly maintenance $526 mortgage no property man. fee because I didn't plan to use one since this is my first ever deal. So as far as expenses go, you are saying combine the cap ex + custom expenses = 15 total %? Between the two, I ran the #s as 15% total when the two are added. My question is, Brandon discusses the 50% rule where you take your cash flow and cut it in half for expenses but I am confused because expenses are included In the analysis. Do I still need to take 50% after I click finish analysis and it gives me my cash flow number? My other question is - does this seem right? While living in the unit, it said $119 mo CF with an 18$ COC return. After moving out, it said $811 mo CF and 35% COC return. That just seems so high to me. Did I do something wrong? And you said calculate water and sewer for both units? Not just one? why both?

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