All Forum Posts by: Steve Theobald

I am trying to find off-market small, medium, or large apartment complexes in Salt Lake City.

@Aaron Klein   No one has asked me this great question before!  I know lots of hard money lenders, but this one is tricky.  No one wants to be in second position in the lien queue, so it may be hard to find a willing party.  I would post your question in several places on BP and see what emerges.  In the mean time, I will ask around.

@Aaron Klein,  @Tim G. The fix & flip market is tight, but the deals are still out there. Lots of people I know are having success with mailers and "driving for dollars." The MLS is dead for flips, but that may come back in a few months. I am currently helping my clients find Buy & Hold deals now, both single family and multi-family. I am finding 8%+ cap rates and 10% to 15% cash on cash ROI on a regular basis with all costs factored in. I am finding the best rental deals in Weber and Tooele counties right now.

The market in Utah is nuts right now, but there are still a few needles in the haystack, both Flips and Buy & Hold deals.  I have many satisfied buyers, many of whom are themselves Realtors who do lots of rehabs.  I work equally well with new and seasoned investors, and love to share what I have learned in 30 flips and 85+ deals.  I have negotiated short sales, found Super Rentals, been successful at auctions, and on top of all this, I am a really nice guy who loves to find great deals and pass them on to you.   Please take a moment and fill out my short questionnaire and I will see what I can do to help you succeed in real estate in Utah.   http://tinyurl.com/SUPERSteveHomes

My daily "SUPER RENTALS" system works great.  

Please sign up below to get on my Buy & Hold investor list for SFR's and Multi's with 12%+ Cash on Cash Return and 7%+ Cap rate. (I find great Flips too, but they are scarce at the moment.)

http://tinyurl.com/SUPERSteveHomes

I work mainly with investors.  I have done 30 of my own rehabs and sold over 85 homes as an agent.

Let me see what I can find for you.

Steve

@Tim Spjut, I think your first investment as an owner occupied multi-family dwelling is pure genius! Besides having your monthly loan potentially fully paid by other people, with a 3% down payment FHA loan, your cash on cash return nears parabolic status.

While there is currently a TON of competition, because you would only be putting down a small amount, you should be able to carefully outbid all the other investors and still have a great deal.

When?  While the rates will probably stay low for some time, we don't really know what they will be in December.  Consider the profit ($$$) from three units of a 4 plex and how that might offset any penalties should you move early and sublet or even break your lease.  Just sayin'!

Where?  There are lots of deals all over the place, but because the long-term plan is to hold this, you want vacancy rates to be as low as possible.  Obviously there is a balance between purchase price and rents.  The nicer the property, the higher the rents, but the more the buyer will pay.  You must find the sweet spot that works for you as the owner.  Some owners are fine with lower return for a nicer place, while others are all about the biggest possible return.  It's up to you - your preferences and your calculator.

How to find an agent?  I have been specifically searching for the best 2 to 4 unit buildings in Salt Lake and Davis counties for quite some time and feel confident I can find something great for you - whenever you decide to make the move.  So maybe this part is done;  I'd love to help you.

@Josiah Halverson, I think it really is "black and white" a lot more than people want it to be! I realize there is lots of gray, but gray really should be the exception and not the rule.

I had a client who stunned me. Two months after he bought a home with an FHA loan I found out he wasn't living in it, and that he had never lived in it. I said "what about the owner occupancy requirement?" He said, "I intended to live in it, but I changed my mind. That rule is all about intentions, so I am fine." I was pretty dumbfounded, and haven't called him since. As an agent, I have no desire to sell him another house. The fact that this was a professedly religious person twisted my brain in knots even further. All hail King Justification! I will even go so far as to bring up the word "evil."

I have gone to lots of REIA meetings in 10 years of being in real estate and in many I learn some new "workaround." And in a vicious cycle, this simply impels the lawmakers to create a new batch of rules!

While I am not perfect, I really try to do the right thing by people and by the law.  I challenge ALL BP members to regularly ask the question,"So what if I do 20% fewer deals because I refuse to exploit all the loopholes I know about????" 

And then we need to say to ourselves, "I will be a person of integrity and do my best to treat people the way I want to be treated."

In "People of the Lie," the famous psychiatrist M. Scott Peck suggests that "Evil can be defined as a specific form of mental illness and should be subject to investigation like other major psychiatric disease."  Wow!  "Evil" as a legitimate psychiatric diagnostic category?  Fascinating!

If people stopped trying to game the system, then the lawmakers wouldn't have to keep making it harder for us investors to make a buck.  Don't you think it's about time to let those lawmakers go home and play with their kids?

It definitely seems that a potential $10k fine for blatant owner-occupant deception seems not to be a deterrent for some.  I think this is clearly a sign of poorly developed risk-control brain centers.  But I think we need to go far beyond mere "compliance out of fear."  Let's all take it up a few more notches-- Take the high road.  Do the right thing.

Thanks @Sean Tagge.  You are kind.  Is this what I get for talking you out of a deal on Monday?  LOL.  @Jesse Casillas I'd be happy to help.  Message me privately.

Ooops, SLREIA stands for "Salt Lake Real Estate Investors Association."

The Salt Lake Real Estate Investment Association (SLREIA) has regular meetings in Davis county.  I am a member, and I strongly recommend you rub shoulders with some great people who have been doing this for awhile.   Every market is different, and the info in the books will probably get you 75% of the way to your goal (if you apply it!).  The locals will take you the other 25%.  Check out  http://slreia.com/