All Forum Posts by: Terry Hoefer

Jennifer-thanks. That gives me more to think about, I like your approach. We have a lot of equity in our own home. Cash from the rental would build, while we wait out the two years for my husband's easy access to banks will be easier. I hate to pay interest if I don't have to. Our own home is a 30 yr fixed at 3%, we've been here for 14 yrs. That's a long time for me, but my husband is fond of our house.

Barbara-kids are ok-just not a big family of kids, more wear and tear. For a rental, less rehab is my preference. I love to rehab, but then I would rather sell.

I guess my favorite thing is rehabbing, I've been doing it mentally since I was a kid. I've done it on my own properties, family members', and keep looking around to do more. I finally have some capital to flip without moving all the time (my poor husband). The deals are scarce right now to make the numbers work for a flip, being outbid on three properties so far, I just won't pay more than makes sense, just because I like to rehab. One small rental property shouldn't be a problem to manage, and it's close to where we live. I don't like the idea of having my money tied up in this one property in spite of the minimal expense, but good cash flow.

My husband has been self employed for over twenty years. He does well, but because his senior partner just retired and the business was transferred to my husband's name only, the banks want two years to go by to qualify for financing. Our credit score is excellent, and we have cash, but without the benefit of financing, our options are so limited for the time being. But the idea of our money not earning anything while we wait, makes me think to collect rent would be doing at least something. Another $1200/mo. while we wait sounds like a good idea. I guess I'm really just afraid, if I go ahead, some awesome flip opportunity will come up and I'll have to watch it go by.

With the current market, tight margins and competition, I'm thinking about a modest move-in ready SFH in a good neighborhood. We'd have to put no money into rehab, could pay cash, and any possible vacant stretches would then be just taxes and utilities. I really didn't want to be a landlord, but a 2 bedroom would at least not attract large families/kids. Any thoughts on this, BP folks?

I like @Ryan Harthan's suggestions, accurate description, while avoiding any misconception of the term "wholesaler". I think wholesaler works when talking with others in the business, yet not so sure about the general public.

On a flip, I'd go with the easiest way to take advantage of existing plumbing, depending on the price point your are in. Clean and new, in a sensible layout is impressive enough, I'm not sure if the ROI merits plumbing to an island, or moving a window. I start out with ideas that I would like for myself, then edit, reminding myself this is for (my) profit.

Mark, I know the feeling. Our first offer on a property was full price all/cash. Same pins and needles. Took a week to find out someone bid higher. We were disappointed, but kept looking. Next came a short sale, owner accepted the offer my husband put in. I was uneasy because there have been 2 proposed routes for a bypass planned for decades. It took digging, but I found the route decided upon Jan/15. It will  merge "our" highway before the property. Guaranteed 4 lane expansion for frontage to start by 2016. Back off! Due diligence BEFORE the offer-lesson learned at the last minute. Waiting to hear back about our latest offer on another property-sure to have multiples. This time-no needles, just pins.

Jenkins Ramon-not in Milwaukee, Waukesha County. There's not much available here anymore. There was an article in the paper today about the diminished supply. Seems we got started a couple years too late for our area. We have to dig deeper, as several Bigger Pockets Investors suggested.

Our agent suggested  the escalation clause, we hadn't heard of it before. We know there will be multiple offers, and we were worried about how much over asking price would be necessary without going too far. This seems like a safe solution. We're in Wisconsin, and  my guess is that you can write anything you want in an offer, but the question could be whether or not the seller's agent advises their client to go along with it. Just guessing. I'll post how it goes.

We put in our offer with a "acceleration clause", saying we'll pay a certain amount over the highest bid not to exceed $--------. 

Chris & Christopher, your comments add to my confidence in our offer, so now we wait...