All Forum Posts by: Tim McGarvey

In terms of risk management on guaranteeing payments, if the buyer misses one payment is that enough to being the foreclosure process? A general question, let's say the buyer pays on time for 8 years and has 40% equity in the home. Something happens and they begin missing payments. How does the foreclosure process work with equity? Would the home owner get the entire home back? Wouldn't the home owner then be considered "lucky" if the borrower defaults?

Hello all,

Question about owner/seller financing, here the situation:

My grandparents who live in California (about age 75-80) are trying to sell my great-grandmother's house in rural Pennsylvania (about 100 miles east of Pittsburgh). After about 6 months on the market, they finally received their first offer, though it came with the caveat that the buyer requested seller financing. I'm aware of some of the benefits of seller financing, such as a higher overall return and steady income stream but I'm wondering what type of drawbacks there could be to them in this situation (specifically an older couple living across country from the property). I suppose its ultimately up to them to decide, but could going this route be more trouble for them than it's worth? Rather than just receiving a lump sum and forgetting about it. 

Knowing that I am trying to get started in real estate investing, they also asked me what I thought about renting out the property. My initial reaction was that it would be difficult to find rented in the area (county population of 81k, city population of around 1,000). I'm not too familar with details about the property, but I would imagine it would need at less a few thousand in repairs and that the finishes in the house are not currently "renter-proof". I also see difficulty in finding trustworthy contractors and a property manager from a town that small so far away from them. Has anyone come across a situation like this where they would a way/process to make renting work? 

Lots of questions here, just wondering general thoughts or ideas that I may not be thinking of. Thanks!

Hello BP,

My name is Tim McGarvey, a new investor from California. I've been catching up on the podcasts over the last weeks and months (I'm up to show #46 right now) but I'm brand new to the forums. It seems like a great place to ask questions, share experience, network with other investors. I'm sure getting involved in these discussion will help expedite my leaning and growth as in investor exponentially. I also grabbed copies of @Brandon Turner's "The Book On..." that I'm digging into as well. I look forward to conversing with you all!

A little about myself, I graduated in 2014 from a small school on the central coast called Cal Poly with a degree in City and Regional Planning and a minor in Property Development. I spent most of my free time with the Construction Management department however and was hired as a Project Engineer for a large general contractor in San Francisco. I've been working in construction management for the last 3 years (mostly large commercial project upwards of $100 million) doing everything from estimating to change orders to managing subcontractors in the field. I've heard a few interviewees on the podcasts mention leveraging "unfair advantages" and I guess right off the bat mine would be that I have experience working for/with contractors and have made a number of great connection along the way. From my time in school, I'm also familiar working with local municipalities, zoning codes, etc.

I'm interested in gaining passive income owning rental properties. I work long hours to I would like to set up specific processes in system to help my side business run itself. The goal is eventually to make enough that I can comfortably travel and explore the world at will (just got back from a 4 week trip to Eastern Europe), without having to worry about what to do for work.

In terms of disadvantages, it's easy to feel intimidated as a beginning investor who owns no property in one of the hottest and expensive real estate markets in the world and has very little savings. While I make a great salary for someone my age, it's difficult to save with the costs of living and sky high rents in these parts so I'm constantly strategist to save pennies here and there to add to my savings for a down payment. I'm sure there is some way(s) for me to "get in the game" here so I will be asking tons of questions in the forums about investing in California, house hacking, and specific tactics for gaining funding to get started. I have a couple ideas/plans right now that I will bounce around in the forums.

I appreciate your guys help in advance and hope to be in contact in the future!

Tim