All Forum Posts by: Steve TeRonde

Jeffrey, 

I'm leaning more towards multi-family at this point but I'm always open to a great deal.      

Run far, far away.      I take it you've never done a flip before?

 I List my rentals on Zillow and they propagate for free to Redfin, hotpads, apartments.com, etc.     Plus, Zillow creates a link for Craigslist.      Why would I give a single thin dime to a broker...?

I've been watching a higher crime area near me.    The listing prices of the properties are very low based on the rental rates for the area.      Have any of you bought in high crime areas?     How did it work out for you in the end?

Thanks for the experienced feedback, Brent.   It definitely seemed hinky to me.    I'll check out some other lenders.    I've got some extra cash but I don't want to be cash poor with a new property with possible unforeseen issues.   

Wow, what a timely thread.     I was just down at my credit union today looking to pull my money out of my last deal.     I got suckered in by a phone call when I was told that my property would be seasoned tomorrow (6 months).      When I got there, I was quickly shifted over to the commercial loan officer.     I explained what I wanted.   He asked how much I had in the deal.       He was only willing to loan up to 80% of what I had in the deal out of pocket.    

(Bought distressed house for $30k. Into it for about $55k. Property worth about $75k (ARV). 80% is only $44,000. I thought I could get 80% of the appraisal.

$40k isn't enough for me to buy the property I've got my eyes on.     I need $60k.     He switches the process over to a 30 year commercial mortgage (5 year ballon).

Looks like I need to save up for a few months and then just do the 80% commercial line of credit at 5.25%.      

My thoughts are that a rising tide lifts all boats.     Your tenants will have access to the restaurants and retail.     You don't need to have equivalent units to make a good profit.      

Why do you want "comparable units"?

Nobody watches your money better than you.     I've never had a good experience with a PM or a broker.     

My local credit union requires 6 months seasoning before I can pull cash out.     Your lender can answer this question for you.

 I have had ZERO luck with listing agents on distressed properties.      I agree with you.    It makes ALL the sense in the world for the agent to "double dip" the commission on a low priced property.     I literally can't get any listing agent to call me back.      My last deal, I had to do some super sleuthing since two weeks of emailing and calling the listing agent and the principal broker netted nada.    I cold called a bunch of phone numbers off a Google search.     The actual owner called me back and asked why I was calling him directly.    After a brief phone call, I had an agent from the listing brokerage calling me within minutes.    

I closed the cash deal a few weeks later.     

My new strategy is to always have a buyers agent as most real estate agents are lazy as hell.    The barriers to entry are near zero and it shows.    At least with a buyers agent, I can get an offer presented.     Since the commission on a $30k deal is peanuts, I get the new girl/guy but I don't care.      I've already run my numbers.