All Forum Posts by: Tommesa Mobley

Quote from @Caroline Gerardo:

To get conventional financing with 3.5% low down payment the HOA has to be 51% owners, have enough cash reserves for repairs, master insurance that rebuilds and be cooperative.

In addition to the HOA monthly fee you will need HO6 insurance so add that into the numbers.

@Bob Willis has a good suggestion ask the owner to carry a 30 year loan at 6% due in five years with your offer.

 Hi Caroline, I was just replying to Bob's comment saying that when I wrote the post I had initially thought of possibly asking for owner financing or a lease option. But then, I wasn't quite sure if I'd done the analysis right or how to actually move forward. As I was saying to Bob, I may re-do the analysis if I still feel like the deal is good for me, after taking into account the advice I've gotten, I may still try it.

I mean the worse that can happen is I get turned down... even then, I'll learn something. At some point, I'm going to have to step out of the books and videos and try something for myself. I'm actually more afraid of never getting started than failing. "If I fail I can learn from it and try again, If I never start I'll never win.-"

Tommesa M. 

Quote from @Bob Willis:

Is the owner open to owner-financing? You say he owns it free and clear, and it is a FSBO.

 Hello Bob, I haven't reached out to him yet. I think I need to go back and re-do my calculations before I reach out to the seller/owner. To tell the truth, it was the first strategy I thought of using... and then I also thought that a lease-option arrangement might also work. 

The thing is, it's easy to read books and watch videos to have the knowledge in your head. If you heard me talk about REI, you'd think I'd been doing it for years. But, I've never actually done anything other than "reading and watching."

I'm thinking that after I do a more accurate analysis if I feel like it's still a good deal, I may just try it (an owner-financing deal). The way I see it, even if it doesn't work, the experience has to teach me something. And if I learn something I can use later, I haven't really lost. 

Thanks again, Bob for taking the time. 

Quote from @Scott Mac:

Hi Tommesa,

It takes money to make money.

Focus number one should be write down exactly what a lender wants a borrower to be for a deal like this...then become that person.

Credit score, length of employment, minimum income, down payment cash ect. 

While you are doing this, work a 2nd job or a temp job and save all of that money in an FDIC savings account.

After a while of this you should be financable, and  have a down payment.

Good Luck

Hi Scott, Thank you for your feedback. And I agree. After I got the initial comments on my post this morning, I started to realize something very important, at least to me. I started thinking that many of us are introduced to REI when we learn from some guru that it can be done "with no money out of pocket." And I suspect a lot of people quit when they learn it's "easier said than done," in reality.

While I believe, creative financing strategies are great "tools" for me to learn and use when I can. As someone, who inspires to be a serious investor. I think the best and easiest path to success is properly positioning myself so that I am able to qualify for financing AND able to put money down. 

I will be taking your advice. In the meantime, I will continue to educate myself and practice recognizing great deals. Thanks for taking the time to share your insights with me.

_Tommesa M.

Quote from @Nathan A.:

@Tommesa Mobley good for you for practicing analyzing deals. If this one is a condo, it's certain to have HOA fees that you will need to add in. And you know your area and I don't, but $1400 a month for rent expectations seems high according to a quick check of rentometer.com.

Good luck!

Yes, Nathan, You're right before the pandemic $1400 was definitely unheard of. Now a renter would be fortunate to find a good for less than $1100. I was going by what I know rent for a similar unit to be in the area. Thanks for bringing the HOA fees to my attention. I didn't even consider that in my practice. I think the best thing about the whole thing was actually posting my thoughts on it and getting all the feedback. It's a great feeling to know I am not alone in trying to figure all of this out. 

Quote from @Steve Milford:

@Tommesa Mobley

Every property is perfect if we only had the money for it. My 2 cents, find the money first, then shop.

Hi Steve, You know, I think you're absolutely right. At least that was the conclusion I came to this morning. Reading your message just now, along with all the other insights, I've gotten on this post is confirmation of that. "Find the money first, then shop," I think I'm going to write that down and keep it with me to remind myself to not put the cart in front of the horse. I believe if I stay the course, take the time to learn, improve my savings and credit, and create a solid plan for my REI business, I'll be as successful as I choose to be. No need to rush. Thanks so much for your feedback.

-Tommesa M

Quote from @Nathan Gesner:

Quote from @Tommesa Mobley:

You can only get that low down-payment if you occupy it as the Owner. Renting out the entire property isn't possible.

If the entire unit rents for $1,400 a month, how are you going to rent single bedrooms for $700? 

You put 5% for vacancy rate, maintenance, and capex, which is half of what you will typically pay. I don't see anything for HOA fees. I just saw a similar unit for $85,000 and the HOA fees are $195 a month.

Be honest with the expenses and double-check your rent rates for an individual room. Don't expect to get any special concessions just because your daughter lives on the same street.

Thanks Nathan, 

The $700 per room actually came from the fact that I've been in the area all my life and know that most people rent rooms in their homes for around $200 per week. But then I'm just learning and was doing the calculations for practice. 

I appreciate you taking the time to reply. It helps me see what I don't know and where I need to focus on improving. Thanks for your insight. 

For now, I plan to re-do my calculations with the suggestions you and other members have given me. And focus on getting good at doing accurate analysis. I still have a goal of acquiring my first property by the end of March. 

In meantime, I'll continue to learn, work on my credit, save for my down payment and practice finding and analyzing deal. Any advice, insights, and suggestion from more established investors are welcome and appreciated.

Thanks again
-Tommesa M.

Quote from @Jon Puente:

Hey Tommesa, 

A great rule of thumb in this market is to find ways to NOT do the deal. Because housing is higher priced and rates have risen, your underwriting should be more conservative.  

1) Use 10% Cap Ex, 10% Vacancy, 10% Management and see if it still cashflows. 

2) Check HOA's fees and dues, as well as HOA regulation.  You might be surprised how expensive it is.

3) Go on the lower end of monthly rents in your area, not the median or upper. 

I think you will find its not as great of deal as you thought OR will force you to negotiate better to get the deal you need.  Right now is not a time to buy rentals with loose calculations.

Hope this helps!! 

 Hi Jon, 

Yes this absolutely helps. I'm honestly, just learning all of this and don't yet know it "like the back of my hand." 

As I pointed out, I stumbled upon the property while practicing. I'm not at all surprised that my numbers need adjusting.

It also helps me to know what I don't know. The clearer I become about what I don't know, the better questions I can ask and the more I'll learn. 

Right now, I'm more interested in learning the fundamentals of finding great deals. What makes a great deal? And why? How to do accurate analysis? etc.

I appreciate you pointing me in the right direction and will go back and redo the calculations with the numbers you've suggested. As well as taking into consideration the HOA.

You've also help me see a few other things I need to brush up on. I thank you for that. I don't mind taking more time to learn. I believe I'm still on track to acquire my first property by the End of March. And when I'm ready, a great deal with be available for me. I'm in no rush.

Peace, Power, & Prosperity

-Tommesa M.

Hello BP Family,

I hope everyone's new year is off to an awesome start. There's something I'd like some guidance on. Any feedback will be appreciated. 

I'm just starting out and have been using my time to really educate myself. of course, I've been reading books, watching videos, and have taken up permanent residence here on BP.  I've also been finding properties and then using the BP calculators to analyze deals. 

A few days ago, while practicing, I stumbled upon a property that I'm really interested in. It's a 3BR 1.5 BA Condo that's FSBO. The asking price is $77,500. It's in great condition and ready to move in. During my analysis with the rental property tool, I assumed a $3,875 Down Payment and 1,200 closing cost. For the loan, I used 30 years @ 10%. And a monthly income based on rents in the area for similar units of 1400. This gave me a positive monthly cash flow of $418.89

Check Out the Rental Property Analysis Here

I'd like to pursue the property but am not quite sure how to move from the self-education phase to the taking-action phase. I also don't actually have the down payment and I won't qualify for a traditional loan. I still feel like this is the perfect first property for me, if only I could choose the right creative strategy to make it happen.

It just so happens that in addition to looking at investment properties, I'm also in need of a new home. I was thinking that if I acquired this particular property, I could live there and "house hack" the other two rooms for $700 each. This would give me $1400 in rent- the same amount I would ask for from a tenant renting the whole place. 

I know of several potential tenants and don't think getting the rooms rented for $700/mos. will be a problem. 

Oh yes. I've already looked up the owner's information and he lives on the same street as my daughter, with whom I'm currently living. Yes. I could literally walk to his house from here. Interestingly his B-day is in a few days, just a day after my son's. I know he owns the condo free and clear. I haven't spoken to him yet, so I'm not sure why he's selling the condo. But, I do feel confident that I can build a rapport with him. 

My question is "What then?" How can I present him with an offer with terms so sweet he can't refuse, but at the same time use as little of my own money as possible? I have some ideas based on what I've learned so far but some direct guidance from those of you who've actually done what I want to do would be super helpful.

Peace, Power, and Prosperity

-Tommesa. 

Hi Kevuan, I'm always happy to discuss any aspect of REI especially creative financing strategies. Feel free to DM me anytime.

Hello Everyone, 

My name is Tommesa Mobley. I've been interested in real estate investing for as long as I can remember, but always thought (or rather I was always told) it was something only "people with money" could get into. I guess, you all can probably imagine how excited I was to learn about Creative REI strategies. I swear, I've finally found my calling. Not just because REI is a great way to generate cash flow and build generational wealth; more important, to me, is the fact that I've finally discovered a way to use my natural creativity and problem solving skills in a way that makes me excited. 

Although, I've yet to do my first deal, I've finally found something I'm excited to get up and get into everyday. I love learning new strategies to add to my tool box. Right now, I'm practicing analyzing deals. I practice using different creative financing tools to structure practice deals. I've set a goal to acquire my first property by the end of March 2023. 

1. 🌎 I currently live in Augusta, GA and that's where I'm looking at properties. I feel like it's always best to start in your own backyard. After all I know the area and people here better than anywhere else. 

2. 💫 I'm a huge advocate of self-education ( I'm an autodidact polymath) and had been looking for content that would allow me to learn how to be the best Real Estate Investor I could be. The problem I kept running into was that most of the "educational" content I found was nothing more that a dressed-up advert for a SUPER expensive course or something. Not that I have a problem with paying for the right education. My thinking was more along the lines of if I have THOUSANDS of dollars to pay to LEARN how to use creative financing... I could use it to PAY for a deal... Thankfully BP showed up with not only a ton of free education, but also a community of people I could network with... YES as soon as I'm able I will be investing in PRO upgrade. In the meantime, I'll be using my free account to learn, connect and grow my new REI business.

3. 🤪 A fun fact about me?? Wow, I'm such a silly and fun-loving person, it's hard to choose one. I suppose the best thing people should know about me is that while I'm ambitious and serious about business. I'm no stuffed-shirt, stick-in-the-much. I love to laugh, joke, and play. My favorite color is purple. I love animals and nature. Oreo has been my favorite cookie since birth. I play the harmonica and crochet. And life isn't worth living if you can't go fishing.  There's more but you'll have to get to know me to find it out.

I'm happy to be on BP and am looking forward to some great connections and possible life-long friendships. HAPPY INVESTING EVERYONE