All Forum Posts by: Tanner Marsey

If you’ve never gone through an off market deal then 100% use them. Negotiate a flat fee for their service. Be upfront and honest with them. Forge a good working relationship that will benefit both of you in the future.

I love these posts.

My favorite ones are “nobody knows when the next recession is coming.” “You can’t time the market” And the very next sentence is “we are at the top of the cycle now” stated very matter of fact...People have been saying that since 2016 and probably even before that. . If your numbers work, they work. If you’re worried... run a stress test against whatever you’re trying to buy.

@Dennis M.

@James Wise

Was wondering when someone was gonna say it....

La is tough if you don’t have the cash to tie up. The pay off can be huge though. I won’t go to into too much detail because most of it has been covered but when I was renting in Southern California (about an hour south of la) I fully expected my rent to go up a minimum $100.00 every year and was happy if the increase wasn’t more than that. Trips me out to see people on here asking if they should raise the rent 25 bucks.

Rent here is pricey and it creates a ton of life long renters because they can’t afford to save for a down payment....so there is no shortage of tenants.

If you can get in the game there is huge potential. But the tenant friendly laws and high barrier to entry is definitely something to consider.

You’re in it for the long haul. Drop that rent. Pick the best tenants you can find and let rent increases and appreciation reimburse you for the hit ya took on this thing in year one. You’re going to win in the long run with this property. Too many people losing sleep over $150.00/mo cashflow (positive or negative) around here.

If your plan allows you to borrow then look into it. My plan allows me to borrow at a certain interest rate but the interest goes back to you. So it’s not so bad.

If it doesn’t then I wouldn’t touch it. Unless this is the deal of a life time and you are 100% certain you’re going to kill it on this deal.

Diversity is key when it comes to investing.

Slightly over deliver on the property. Nicer appliances, maybe throw in an accent/shiplap Wall or some other stuff. Slightly fancier interior doors and a painted/unique front door. This stuff can all be done VERY cheap. List at market rent. This strategy seems to keep stuff rented, gives you a good pool of renters to choose from and decreases turn over to a degree, and seems to keep property in better shape because (sometimes) the renters appreciate it more. One of my main concerns at this point in time is limiting vacancy and turnover.

Also, rents will increase over time. Play the long game.

Good afternoon. Doing a little research on seller financing because I have a potential deal that fell into my lap that might be a perfect seller finance deal.

Son inherited home. I live two doors down from it. Its currently rented. He has no desire to be a landlord and wants the current tenants to purchase the property from him, however, they’ve out grown it and want to move. It Needs some rehab but mostly cosmetic and updates. It’s a 2/2 and could easily be a 3/2. As it sits it would probably list/sell for 400k or slightly higher.

I understand the general concept but want to know more about how to structure a deal if the opportunity arises.

My idea is x amount as a down, x amount per month(offer above what he gets now). That part seems fairly easy but I’ve heard about people paying above asking or above market interest rates. Wondering if this benefits the buyer in any way or is it strictly to get the property? Is a higher interest rate and lower purchase price (or vice versa) beneficial to buyer or seller? Who handles all of the logistics? Escrow company and title company in conjunction with a RE attorney?

Are there any books, articles or podcasts you could recommend in regards to this subject? Any advice or feedback? Trying to prepare ahead of time instead of scrambling.

Thanks in advance. I know that was a long winded post and I appreciate you taking the time to read it.

Not what you want to hear at the moment I am sure but.... save up some more money. Buy a nice, newer home in a solid class B neighborhood and take care of large items up front, if necessary. Have adequate reserves from day one. Find a good PM with reasonable fees and a good performance record. Communicate with them often until you’ve built some trust. Come to the realization that you will incur additional expenses using the PM. This will cut into your profit but there is no way around it. Try and make a trip out every so often. Meet up with your PM. Drive by/walk the property. Try and get a few doors either by multiple SFRs or by a multifamily property. It mitigates risk to a degree and, quite honestly, I think you’ll get better treatment from a PM with multiple properties.

Do your research and put the time in up front to avoid unnecessary heartache.

@Joe Kim

Buying, selling, owning, renting, flipping, wholesaling.... none of that makes you “elite”.

Maybe it’s coming, maybe it’s not. Thinking about it and operating in a certain manner because it might happen is a dangerous game. I’ll adjust my numbers and strategy when the market demands it.