All Forum Posts by: Tariq B.

@Paul Defngin Yeah that they are. Which was why they believed this to be a no go. There were hardly any comps. But hey it got pulled off!

@Anthony Gayden I know! Trust me, I got fed up myself quite a few times, my poor wife had to put my with my complaining. lol bless her heart. Maybe just careless I'm not sure.

Hey Fellow BP'ers,

So let me start off by saying I have a handful of deals under my belt by now but this one was by FAR the most stressful/hardest buy I have had the pleasure of doing. I won't get too much into it on here unless the readers demand it! I do plan on launching a channel on you tube. Which will be geared around being in the military and getting into real estate at the same time. There, I plan on breaking down why this deal was a pain in the but. Anyways moving on...

There was this 4-Unit, tenants already in place, no work required that has been on the market for over a year. (it's funny because I skipped over this place thinking what a trash deal at first. Only after a couple of deals fell through did it start looking more attractive).

Asking price originally was $250,000. They did a price drop to $230,000 and no one was taking the bite. So I went after it. The broker on this deal was extremely distant to say the least, I was always directed to the assistant who was handling the deal...who was "learning" how to do his job, to put it in a nice way.

Come to find out apparently they had been scaring off like 95% of the people interested because they sincerely thought it could not get traditional financing. They had it under contract once and the buyer backed out due to "complication with financing". To add to that they were certain it would not appraise as a lender had informed the broker this is a "unique property and will be very hard to appraise" (It's two separate buildings on one parcel of land). So because they had this misleading information everyone was scared to move forward until I stepped up to the plate.

I asked had the place been appraised with the previous buyer. The answer was no. So I went for it. I said let's go for it and see what happens. At this time it was all hearsay that it wouldn't appraise. I got on the phone with my lender who went to his underwriter and they got on the phone with Fannie Mae and confirmed that this place could indeed be financed given it's current situation. So we pushed forward. There were hundreds of hiccups along the way. Most of them due to the appraisal and the broker not wanting to put forward any effort as he was certain this would not get cleared and was wasting his time (I saw it with my own eyes in an email, to the lender from the broker "I fully expect this not to work out")

Needless to say closing is set for next Wednesday and assuming survey gets done we should be good to go!

Sometimes people like to think they know what they are talking about when they have really no idea. Unless it has been tried then is it really impossible?

*This is also a success story because with this purchase I am now over the 1 Million dollar threshold in RE holdings! My goal was to do that by 30 but I accomplished it by 26*

The Numbers:

Purchased for $219,000 W/ 2% closing help

Mortgage: $1247 PITI

Down payment: 25% of purchase price (sorry I don't have a fancy get this place no money down! This was the aftermath of saving other rental income and my military income).

Total rents: 2250 (I plan to change out tenants one unit at a time and there is the potential to add bedrooms. Eventually raising rents to around $2600 conservatively)

Tenants Pay all utilities

Plus vacancy/capex/repairs and what not (just didn't feel like doing the math right now)

It's not a home run as far as ROI but this is in an up and coming area and I fully expect this to appreciate rather well in the future. Lot's of job growth and expansion.

Thanks for reading,

Tariq

Hey All,

I had an appraisal done on a 4 unit that was split into two separate buildings. The appraisal was done two weeks ago and twice the appraiser has asked for an extension. We are now a couple days out from closing and still no appraisal. He keeps pushing it off. "Oh I'll have it done today if not tonight then in your email box early tomorrow morning." It's now the afternoon and low and behold no appraisal. His excuses is this is a tough property I'm still trying to find data to represent value. 

I'm pulling my hair out with this guy, we are now 90% sure we are not going to make closing on time, if at all at this point. I have no paid yet. Any of you guys been in this position if so how did it turn out? Did you pay full price? Not at all if the deal goes south? 

Just curious, thanks! 

Hey All,

Hope your Thanksgiving found you well!

Question for the masses.

Why is private money, from friends and family what I hear is "the way to do it" such a good thing, when I am seeing private money mortgage brokers offer 6-7% loans 30 year fixed? The reason I ask is if you are to borrow from family and friends I thought the norm is about 8-10% in interest but if I can get a loan from a primate money broker for 6-7% with no limits on loans, why should I strive to get money from friends and family and potential have more people to answer to?

Just curious as I have started to make a name for myself on my inner circle and are now starting to get people coming to me who are willing to put up their money with me as they see I am doing fairly well.

Thanks!

Tariq

@Dan Krupa I am asking in your area, does or does it not require experience that you have to prove to get your GC certification?

@Dan Krupa Right that is understood. I guess my question was. Did you not have to prove experience for your particular area to get your license? You only had to pass the test?

@Dan Krupa Hey quick question. How did you go about getting licensed as a general contractor? I have wanted to go that route but the lack in "working for a company".. aka proof of experience hinders me as I see that is a requirement. I know how to do everything and have no doubt I would ace the exam. But I fail to meet that requirement. How did you do it?

Hey everyone,

So I woke up to an irritating text from the sellers broker. As I let them know I would have to walk from the deal if I can't get the insurance down. He said "There is no 4-unit in america that will be insured for less than 3K." I couldn't help ask myself....how many 4-units have you tried to insure in your life?

Needless to say I was determined, so I called around, ended the business day pretty beat up, call after call. But it was not for nothing! Thankfully I found a broker who appears to be very good and we worked on the policy trying to find ways to bring it down. Long story short, should the 4-point inspection check out and the wind mitigation inspection check out the policy will be down to $700 a building, which was under budget! Thanks everyone for the positive vibes. 

@Jim S. unfortunately the local brokers are the only people I have tried, I stopped going to the "big guys" long ago but i appreciate the idea. I'll just keep trying more local brokers. 

@Matthew Paul  how's the weather out there, I don't miss the weather there but I sure do miss the RE market! How would  your idea work in this situation? I would love more details.