All Forum Posts by: Stephen E.

@Brandon Metzler My properties are in Jackson and Yazoo.

You'll probably make significantly more with AirBnB, and sometimes you'll have the whole place to yourself. I prefer it, personally, but it's really up to you. Definitely install a good lock on your closet/bedroom door.

I'm considering starting an S-Corp so I can pay myself a salary and generate W-2 income so it's cleaner when I go to refinance property. Does anybody have any experience with this? I'd love to know your thoughts.

@Jerel Ehlert Great post!

Hi @William White.

One thing that people are leaving out is that TK properties can be a lot like BRRR properties. You can take loans against them. I'm not sure that you can do that with other investments. I bought three turn key properties in Mississippi that I wouldn't have been able to get a loan to purchase because they cost less than $50,000. The properties rent for great returns, 2% monthly of the purchase price.

Now I'm taking out a profile loan against all 3 properties for about my money back. I'm getting a 20 year amortization starting at 4.3%. I'll take that and get 3 more properties in Mississippi. So that's one way to do it.

I also live in New Orleans if you'd like to get a coffee sometime and talk real estate sometime.

stephen

@Martha Daisley it's great that you don't have an agent actually. Agents often take the profit out of a deal. If the seller is just asking for something pretty unofficial it sounds like you're OK. As @Israel Garavito pointed out, the bank isn't going to actually approve the loan until you are further along. You can tell them a price that is subject to the information checking out and the loan being approved. The loan won't be approved unless the appraisal checks out, which is good for you.

At best at this stage all a lender is going to give you is a pre-approval. You won't be actually approved until you've had appraisal, later in the process. I've bought property multiple times without bothering to get a pre-approval letter. It doesn't actually mean anything. On my second property, actually, I got a pre-approval letter, and then was turned down for the loan, and just went to someone else and got the loan.

Hi Martha, you wouldn't make an offer, I don't think, without knowing the asking price. I'm presuming you know that price and you're considering how close to get to it?

I'm not an expert but I own some properties. A big thing is, don't be desperate. If there are other interested parties it might not be the best deal. 

Of course I don't know much about your situation but it doesn't sound like too much of a big deal. If you've asked for information and they haven't supplied it that's an obvious red flag. I wouldn't be worried about not having seen the leases but I would want to know the exact rent every tenant is paying. It's very easy to get out of an offer once you've made it. If you make the offer and they don't give you the documents you want then you can cancel the offer. Or if the documents say something  other than what you were led to believe. Etc.

An offer is just the beginning of the process. But again, I don't know your situation so it's hard to offer specific advice. Are you working with a realtor? If so, the contract you would sign for an offer will come with many outs, including not being approved for a loan.

Hi @Demi Diaz. Congratulations on starting out! Sounds like you're doing everything right. I don't know about first time homebuyer grants, but getting a multi-unit is the way to go. Especially in New Orleans. Hard to go wrong on a property you intend to live in.

@Lianna Mae Smith You couldn't have applied for the permit prior to closing on the home, so that wouldn't have been an option anyway. I don't know what they're doing for Covid but you used to be able to get your permit same day if you went to City Hall. Just need to have the Homestead Exemption already in place. I've always recommended people not try to get their STR permits online in New Orleans, just go to City Hall. Not sure if that's currently the option though.

Thanks @Susan Maneck! I actually bank with Wells Fargo and never even thought about doing that. I'll check them out and see about that. That could be great.