All Forum Posts by: Troy DeLong

@Jon Haney

From reading your contract screenshot and the reply from your agent, you (The Buyer) don't need to pay anything. The Seller paid his commission. 

If his minimum is $2,000 then he should have clarified that with you before and got it in your contract, but he didn't (From what you are sharing with me). And from his reply, "Which we never discussed, so its no big deal." says all you need to know. Shake hands and head onto the next deal. 

But definitely know what you are signing next time. Best of luck! 

@Jon Haney The 'Compensation' referred to in that screenshot you shared (Exclusive Buyer Agency agreement) is stating that your agent (Buyer's Agent) is entitled to the compensation offered by the SELLER in a property that is listed by a Listing Agent. You DO NOT pay that as a Buyer.

Now, if you purchase a property using your Buyer Agent and the Seller is NOT offering any compensation / commission, OR the compensation is under your agents minimum (2.7% or $1,000 stated in your Exclusive Agency agreement) then you are responsible, as the Buyer, to cover the difference. 

As far as your agent's comments on the $2k, he's probably just saying that you are getting a deal, I guess, or something of that nature. But you're not obligated to pay the $2,000. 

Hope this helps! 

@Ian Hutton 

What do the current leases look like? Are they year leases (if so, how much time remaining)? Are they month-to-month? 

If you need to raise the rent that much on them, then you will most likely lose all the tenants. That's not necessarily a bad thing though. If that happened, you then could bring all units up to market rent. 

What do the mechanicals and utility meters look like at the triplex? Are there separate meters for all units? Does each unit have it's own furnace/AC? This will determine if you can put the new tenants on their own utility bills. 

You might also want to look into upgrading the property with energy efficient upgrades (ie. LED lights, slow flow shower heads and faucets, added attic insulation, basement/foundation insulation, etc). 

@Lucas Rodrigues ferro  If you will be working at MSU, then Okemos, Haslett, Mason or Williamston are all fantastic areas to live and commute from. I live in Mason myself and love it here. Taxes in all areas are fairly high, with Haslett probably being the highest. 

If you are looking to invest some more in the area, then you have tons of options as far as price, location, SFR vs. MFR, tenant pool, etc.

I see you're a contractor? I work for a local builder and am also a licensed agent. Let me know when you get moved into the area. I'd love to buy you a coffee and chat. 

@Ryan McNamara 

Hey Ryan. For a NEW rental registration, it's gonna be $400. For a change of ownership of an existing rental, it's gonna be $200. Then you will have your inspection fee every three years that will vary based on the type of building and how many units. If you want to connect, I can email you the City forms. 

@Nathan K. HELOC is a great option to purchase more properties if you have enough equity to do so. I've worked with a couple out-of-state investors who have went this route and got a HELOC (on their Primary Residence). Their best success was working with their local credit unions to do so. I would start with them.

Hey Brandon, 

Liberty Title in East Lansing is very investor friendly. I would reach out to them first. (517) 977-9509. Ask for Mona (Office Manager). 

Hey Katarina, 

If you plan to house hack a multi-unit property, then I wouldn't worry too much about the monthly cashflow right of the bat. I'm not familiar with the Boston area, but I would have to guess your out-of-pocket cost every month would be way less (if not zero) house hacking than if you rented elsewhere or purchased a single family. If you "break even" while house hacking, that's great! Once you move out down the road, then you would start cashflowing. 

House hacking is probably the best way to get started in REI, and FHA (3.5% DP) makes that even better. Not impossible by any means. Best of luck!

@Gregory Schwartz I went with Monday.com software because that's what my boss decided we were going to use, lol. But he chose that one over the others because it was very user friendly (for our older managers) and it offered a 'Groups' function where we could add certain individuals to different projects. It's also nice because we can upload invoices, quotes, drawings, permits, etc all to the individual project we create. We were able to go from texting and emailing groups to one centralized platform where everything is MUCH more organized. Start dates, who's in charge of what task, price, status bars, completion dates, etc. 

@Nolan Brendese

Your best two options would be to take advantage of an FHA loan (3.5%) or a Rural Development / USDA loan (0%). Both of these would work great for a single family residence, but I'm not sure if RD will work for a multi-unit property. That's a question for your lender. Also, keep in mind that only certain areas qualify for a RD loan. I'm not sure where you are in proximity to Charlotte, but city proper does not qualify.

With the funds you are listing that you have on hand, it sounds like you could make it work if you stretch it far enough, but the smart thing to do would probably be to save up more funds throughout your lease term and purchases something down the road. I know interest rates are going up and people aren't sure if prices will follow or will come down, but you really don't want to stretch yourself too thin on your first purchase. 

Figure out your best options with a lender, start saving/planning for that option, and revisit the market once you get into the last half of your lease.