All Forum Posts by: Timothy Frazier

@Gregory Johnson

I’d say it depends on the loan. There likely will be a minimum time period like 6 months before you can refinance. But for a second property as long as the bank thinks you have the income to support another mortgage you’ll probably be ok. However they will mandate on your additional mortgage a minimum of 20% down.

@Corey Smithfield

I’d say it definitely could. I don’t do it but I know some licensees and even some brokers who have. I will say the crowd who preaches “its better to wholesale unlicensed because you’re not as regulated” is grossly mistaken. The law governs everyone. As was stated previously I think the main thing is making it clear to the owner that you are an agent and what your intentions are, and making sure the paperwork you and the owner sign clearly defines that. I also don’t agree when people record the contract as a lien against the property.

Mainly I think wholesaling is just harder to do than most make it seem. It takes a lot of volume marketing. The western PA market where I’m at isn’t exactly the San Fran of the Midwest but there’s still wholesalers putting $20k a month into marketing that are basically small companies, not just one person on the side. I would like to get into it but it’s a tough racket IMO.

Investment Info:

Single-family residence buy & hold investment in Carnegie.

Purchase price: $72,000
Cash invested: $18,000

Rental Property

How did you find this deal and how did you negotiate it?

Expired listings, called seller and negotiated on skip trace.

How did you finance this deal?

20% down, remainder on commercial loan.

What was the outcome?

Turn key investment, $900 per month

@Tim Griffiths

The brokerage gets the business regardless of who represents you it just affects who gets paid the commish. If anything they should recognize your needs themselves and assign you to someone who specializes more in investment property. Good luck.

@Erin Butler

I use white pages premium. Primarily I am cold calling expired listing sellers whose property they have already vacated in hopes of landing an off market, below market value priced rental. Because it was already on the market awhile they’ve typically already moved.

I couldn’t really give you an accurate number of correct hits I get since just because they don’t respond to calls or emails doesn’t mean the trace isn’t giving me the correct number. Sometimes it hits, sometimes no answer, sometimes the number is dead. I would say it’s pretty effective though I’m getting ready to close on my first off market turn key and that same seller may be selling me another one too that had a hit off a white pages skip.

The best feature I like about white pages is the reverse address search feature. You can get the seller name from county deed book and obviously you know the address. Like I said typically the seller has already moved but they were usually at your address for some time. Let’s say your sellers name is a common name like Curtis Williams (I just had this). Well if you search Curtis Williams even in one state you’ll get a lot of hits. But if you reverse address search your sellers address, and see that there was a Curtis Williams living there at some point, that’s probably your guy. This happened to me in PA recently, guys new address was in Chicago. Picked up on the first call (of course he didn’t want to sell). There may be other skip services that offer this same thing I don’t know.

Hope this helps and best of luck.

@Taylor Hudgins

Thanks Taylor. I have been doing something similar lately. Have a few more to check out this week. A lot I am finding are just in very bad condition and need more capital up front to fix up than what I am looking for. But good to know this is a good look for you and your team.

Looking to get into RE investment. Have a sales license and am a member of local MLS. I'm very low volume in terms of typical buy or sell clients; I work full time and just pick up friends and family when they want a sale or buy rep.

Wanting to get into the rental side of the business. Mostly buy/hold or BRRR type of properties. No desire for wholesaling or complete gut job flip and sell. Have a good network of local contractors as I flipped the house I currently live in so I am not scared of some work but don't want an entire top to bottom demo.

So I am struggling to get going and buy anything.  I'm confident in my ability to run numbers.  And my problem isn't that I am not getting any leads whatsoever.  The problem is every lead I come across is either a) very cheap but extremely run down and maybe in a not very good part of town that would be hard to market and take a large amount of capital to fix up or b) nice and has tenants already in it (turn key type which is ideal scenario) but the owner is asking way too much for it to cash flow.

I'm not frustrated to the point where I am going to stop. But I don't feel like I am going about searching the right way and don't want to keep hitting a brick wall. Mainly I've just been going after expired listings on the MLS and looking at FSBO and trying to reach out like that.

What are some ways you got ahold of your first properties?  Is it worth trying to get a list from somewhere like postcardmania?  Did you use pay per click and set up a domain?  On one hand I'm apprehensive to spend a lot on marketing but on the other I feel like I need a different approach.  I am sure this answer is different market to market, just looking to see what most people did starting out.

@Dave Lin

Thanks for the input Dave, yes it was a State Farm quote, my wife’s friend has her branch so I went through her. Sounds like it’s a pretty fair offer.

I have not even offered on the property yet just trying to get a feel for expenses.

Was trying to gather what people pay in insurance on single family rentals. I’m in western PA to give and idea of course this will vary by location.

Just got a quote for a single family I'm looking to buy, getting a commercial loan will deed it in my LLC.

Purchase price $50k.

Dwelling coverage $200k, deductible 1% 2k.

About $50 per month premium.

What kind of figures do you ask for in terms of dwelling coverage compared to purchase price? Any way you budget for your insurance before getting an official quote?

Many thanks.

Have two properties I have been trying to chase down for awhile.

One is a house that was badly damaged in a fire in 2015. Sadly the owners were older and the wife was very sick and did not make it out. Husband was not home at the time, he simply moved in with his kids and has not touched it since. As you may expect property condition has diminished significantly and several neighbors have resorted to calling the city on a regular basis to try to get it condemned. I am confident I know his new address but all skip trace apps have come up empty as far as a phone number.

Other one is a foreclosure which they have been fighting on and off since 2017. Was scheduled to go at auction in October (my county does them once a month) but got postponed to next month. I won’t go into the entire story I researched but they aren’t coming up with the money. Husband and wife are both on the deed and are both still living there with their 3 kids, property looks to be well kept. Sadly she’s in some pretty serious legal trouble with bad checks on top of some other charges she was involved with a couple years ago. Again skip trace app just can’t get me the right number.

My question was I did not want to knock on either owners door directly and confront them about a potential sale. It just is too abrupt for me. I got no problem talking with the neighbors which I have done but nobody can give me a phone number. Has anyone ever tried writing a letter and mailing it? Just a quick note explaining who I am and that I’d like to buy the property, leave contact info, etc.

Any and all input appreciated. Thanks.