All Forum Posts by: Steve Mason

@Corey Dexter man, this sounds really fishy. I just did a deal w a priv lender, 3 points were rolled into the loan. I can't imagine 6 grand as a fee. I would say if you can get your money back do so and run far away. No way should Wal-Mart be involved, as well as the fee of Anywhere near that amount.

you say you cared, even tho you weren't paying the commission? I think that's a case where, you can stand on principle, (which is debatable if you're right or not) and lose the deal. I would take the deal. They do have a right to charge the seller a commission. 

I'm generally against Government mandating things like this. Auto Insurance? OK, I get that but Government meddling usually creates problems. We're better off allowing the market to work. Why does everyone have Water heaters? People love to have hot water, right? Once something like solar, heck, even windmills on your property, once they're efficient and cost effective, people will demand them. I sympathize. I used to live in The Peoples Republic of California. LOL. Best of Luck. 

When I was a Realtor, I wondered that myself. Looking back, I was so busy making a living and chasing the next lead, I really didn't take time to invest like I should have. One thing I noticed, most Realtors didn't come across many investable properties. Most clients wanted a retail price for any junky property. I think being an investor is a different skillset than a Realtor. I finally got into it, after getting out of being a Realtor. Best of luck. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $62,000
Cash invested: $6,150

3 Bed 1.5 bath, 1400 sf, needed cosmetic rehab, Appliances, flooring, paint, doors, hardware upgrade.

What made you interested in investing in this type of deal?

Met a Wholesaler, liked how she worked, and the products advertised, well below market. Will buy from her again.

How did you find this deal and how did you negotiate it?

Found it from a wholesaler. Asking price was good, considering what it needed, in a growing market that wasn't too far out of range yet.

How did you add value to the deal?

Rehabbing all cosmetics, hard money lender gave a fair deal on money.

What was the outcome?

Still in process, but should cash flow $300 month.

Lessons learned? Challenges?

Find your process. Repeat. Trust your gut (as long as numbers work)

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

I agree with Chris, sounds like they may be trying to deflect the real issue, which is they in no way want you to increase the rent. I think I would present them with a new lease, along with a 30 day notice to vacate and tell them to choose one. You can't always be so nice to some people, unfortunately. Best of luck.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $160,000
Cash invested: $3,500

I did access 41k of a LOC for the down payment of 20% down. Planning on hitting the LOC hard the first two years, pay it down (interest only charges), then access the LOC again for the next one. One year in. So far, so good.

What made you interested in investing in this type of deal?

A Realtor friend had it as a rental property. She had Section 8 tenants who tore it up and were moving out. She told me she wanted out of it and was willing to discount it a bit for the repairs. I figured out the financing, opened a line of credit, did most of the repairs myself and full of doubts, jumped in.

How did you find this deal and how did you negotiate it?

Oops, I think I just answered that.

How did you finance this deal?

A combination of a Mortgage company and a line of credit.

How did you add value to the deal?

I painted the whole house myself, changed all knobs locks, hung blinds, did everything with the exception of installing a bathroom vanity top that was cracked (How in the heck you crack a vanity top??)

What was the outcome?

I ran an ad, held an open house. After meeting a few, a really nice couple walked in. They had a small child and seemed serious about life (not party people). I offered the house to them on the spot. They took it. One year in, they're paying $1250. a month and want to sign for another year. It's going well.

Lessons learned? Challenges?

I could have gotten a better deal thru a wholesaler, but at the time, I didn't know any. I do now, and about to close my second deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

So far, no.