All Forum Posts by: Ed L.

I'm perplexed by the concept of wholesaling.

If you don't have ernest money or pre-approval, but you do have buyers I would highly recommend getting your real estate license and just start representing buyers.

Every foreclosure I've purchased required proof of funds and ernest money prior to submitting the offer.

I have been approached on 3 different occasions to assign the contract after we beat out other bidders in multiple offer situations.

I would start visiting new spec house "Open Houses"... You will quickly notice recurring themes that work.

Most builders know what works, so just follow a successful lead. I'm a big fan of neutral colors Light tan walls/ Creme Trim. Oil Rub bronze goes really well with that color scheme.

If it's a smaller cottage type home, I like to throw in some color to brighten up the small spaces.

$7,000 to hook-up to city water?? That is absolutely insane unless they have to run it for a mile to get to your property.

If it were a flip I would rework the well no question.... For rental property I would try to negotiate with the city ... Over the long run a well is just another high cost maintenance item.

DO NOT PAY PAINTERS, ELECTRICIANS, PLUMBERS, OR ANYONE ELSE UNTIL WORK IS DONE AND YOU HAVE VERIFIED/ SATISFIED WITH THE FINISHED PROJECT....

The second trade workers get ahead on payment your project looses all priority. I'm going into week 3 with a A/C guy who was *Supposed to finish this evening*

It is a easy rule to remember, but much harder to practice.

If a seller is supposed to perform work after closing make sure there are funds held in Escrow until the work is finished.....

IF you are buying foreclosures that are not in a platted development, be sure to get a survey. Do not depend on the court house mapping department. Just recently found out 1/2 the neighbors house was on the property we purchased..... Luckily it wasn't the other way around.

Don't forget about Uncle Sam... A very big portion of those big juicy checks belongs to our benevolent social planners in D.C.

As bad as taxes are they are a necessary evil... Bankers want to see them now more than ever.... You don't report good income= You don't get loan for project.

As a Realtor I don't mind someone shopping around..... As long as they are realistic, capable, and pleasant to work with.

Try to pre screen the properties with google maps & street view... I have saved alot of gas thanks to street view!

Don't worry about the deals that you miss out on.... There is always something better coming down the pipeline these days.

Have any of you had luck with lowering property taxes on SFR Rental Property?

If you succeeded please share your experience. I hate taxes in general....

If you assign the contract you are no longer part of the transaction. The buyer needs to work out closing details with the seller or sellers agent directly.

Andy,
I highly doubt you will farm your way out of 5K per acre land, but you could probably lease out the land to help cover the carrying cost on the property.

The first thing I would do is verify with a local Realtor what the smaller parcels would sell for in that market today... Try to find recent comps (6Months)....

If you can split the land into 6 parcels of roughly the same size (About 50-60 Acres) Find comps for those parcels... Land is all about price points..... Make sure you compare Apples to Apples.... A 10 Acre parcel will demand a higher pricer per acre than a 60.

Once you have indeed established that the property is a bonafide good deal I would try to get a contract signed on the property with a 30 day Due Diligence period to secure financing. Probably do a 60 Day closing period.

I'm sure the seller will want you to put up ernest money (Probably 20-50K on a deal this size)... Just make sure you have the contingency for financing built into the contract.

I would then try to obtain financing from a local bank that specializes in land loans. Landbank, farm credit, etc...

They will probably require 20-30% down payment.

If you can't obtain financing on your own, try to find someone to partner with or to flip the property to.

Land investing can be very rewarding if you do the research and find the right deal..

Hi Everyone,

I'm a 24 yr old investor/ real estate agent.

I currently own a real estate brokerage and have done quiet well considering the state of things. (I have averaged from 30-200K annually since I was 18)....

I absolutely love doing what I do. My parents were investors who always focused on short term flips.. (Mainly land, with several homes thrown into the mix)

They taught me how to make money, but throughout my childhood there was always stress and uncertainty.... We always lived very well, but it was constantly a rags to riches type of situation.

My wife and I are considering having kids in the coming years, and I don't want my kids to worry like I did growing up...... I also watched the effects it had on my parents marriage and it wasn't pretty at all......(They somehow worked through it, but success came at a price)

Here's what I currently have going.

I bought a office building (purchased last August) to house my real estate brokerage...I only use 1 of the 9 suites. The rest are all occupied by tenants.

It is currently cash flowing approximately $45,000 Annually. I owe $350,000 on the property and intend to eliminate that debt ASAP. Once the debt is knocked out it will be brining in a additional $30,000 per year. Total Net Income will be +/-$75,000.

To help pay down the office building I intend to sell a parcel of land I acquired during a business transaction that is worth approximately 130K. The land is paid for, and although I enjoy having it I just can't justify keeping it considering the lack of return.

I also have a rental house that nets about 6K annually that I would like to use to pay down the office building.

My goal is to have the office building paid off or wayyyy down in the next 5yrs. Primarily because I have a 5yr note with a 20yr amm... If I make minimum payments for 5yrs and the interest rates are 15% when I refinance things will be looking much less promising.

Another opportunity I see are single family residential rental properties. I live in a mid size city that has a huge rental demand due to a large University and military base..

I can buy nice solid homes, for about $30,000. My closing cost are somewhat negated by my real estate commission. The average house I would be considering would need another 5K restore it to A+ rental condition. It's a highly competitive segment and the deals are scarce but I come across them.

These homes easily rent out for 650-800 per month.. Tenants pay all utilities, and lawn maintenance.

Taxes cost about $1,100 Annual

Insurance runs about $350 Annual (70K Coverage w/10K deductible)

I would put aside $100 per month on maintenance.

I would probably set the houses up on a fixed 15Yr note... 15-20% down.....Hopefully have the interest around 5%.

Due to the demand I can afford to be very selective with my tenants.

I already have 1 of these properties in my portfolio but I paid cash for it. (Not the best Idea looking back- Should have leveraged)

I feel that I'm pretty well suited for the rental business. I already have tenants so I am accustomed to the annoyances of being a landlord. I have under utilized office personnel at my brokerage to handle rent collection, and scheduling repairs. Lastly I have a good relationships with local workers and handymen to maintain it all for for relatively cheap.

My question IS...

Would it be wise to invest in a few more of these properties while the interest rates and prices are down or would I be better off just throwing the money towards the office building...????

The reason I ask is because I have a closing coming up Friday on a house I flipped.. I will net approximately 40K from the closing and already have a very nice rental candidate in my crosshairs.

Then the question is whether I should hold onto the properties or just flip them for short term money.... (The problem I have with this is that the good deals become very scarce when the economy picks up.... The income can disappear; or worse people will buy not so good deals because there is nothing else available.....Witnessed this first hand)

Thanks to all for any suggestions or for just taking time to read my overly long first post.