All Forum Posts by: Shane Stevens

My wife and I are not regular investors. We decided three years ago to sell the home we lived in for 18yrs (refinanced a couple of times so not much equity), but enough equity to purchase a condo at a good price. It was our intent to live in the condo for two years and sell at a profit, hopefully making enough to buy bigger and better the next time. Then Covid happened and two years turned into three years before we were able to put it on the market. As soon as we listed it, the condo sold for significantly more than we had anticipated. Not only that, but it sold faster than we anticipated and we suddenly had nowhere to move to. All this happened in April 2021. It is now May 17, 2021 and we are renting whatever we can find for as long as we can find. At the same time, we are looking for our next purchase....

All of that said, and now I get to my real question. I am trying to figure out how it works when you use land as leverage to purchase a house or build a house.

We are seriously considering building a home. (I know, material prices are thru the roof and lead times are long as well).
We are thinking we can pay $160K cash for the Land.
Then, use the land as collateral (Leverage) to get a loan to build the house, which is going to cost $550K to build.
a) Will I still be financing the total $550K? or b) will I be financing $ 390.00 ($550K minus $160K)?

How did this deal turn out?  Did you purchase the property?

If so, how did it turn out?

Why does it come back on the next round?  Is it because it did not actually sell the first time?

I came across Auction.com on the internet and was wondering if anyone has had any success finding profitable deals there. 

I checked out a couple of properties and was impressed to see the Title information was provided.  I wonder if the Title information is complete and accurately dependable?

Any comments will be appreciated.

I want to thank everyone for all the advice and words of encouragement. I met with the RE Agent at the property yesterday. It turns out there is currently 1 owner that owns six (6) quad units. He is selling each quad unit to whoever will buy. He has already sold two to two separate people. They are also wanting to set up an HOA. I have decided there are just twos my irons in the fire on this deal for it to be a first deal for me. So I out on this one. On to other opportunities.

The agent told me of a couple of other opportunities she knows about, two of which may be a possibility. 

Thanks again all!

I am about to meet the real estate agent and a owner of a 4 unit property for sale.
This is the first time I have ever acted on potentially purchasing a multi-family and want to ask for all the correct documents to be able to perform an accurate analysis of the financials and rental property as a whole.

What should I ask for tonight?

I am already thinking I should ask for:

1. Current Leases or 1 year rent receipts to date (to verify rent history)
2. What financial docs should I ask for?
3. Should I ask for an Estoppel certificate at this time or would that be later if I make an offer?

Thomas,

The $600 per month was from the real estate agent.  I have to admit the thought has already crossed my mind as to whether the rent could be increased.  I was actually thinking potentially $750 per month.  I am going to investigate other properties in the area and see what I find as far as what other rentals are getting per month.

I happen to know one person that has about a 1400 sf single residence and is renting it for $900 per month.  Not sure how much value there is in that comparison, but it's all i have at the moment.  Thanks for the input. 

Garrett,

So your numbers are based on 3 units per bldg......but if there are 4 units per bldg x $600/mnth, then I am at $2,400/mnth.  The 4 units is what got me excited.

Jon  Thanks for the info.  This is really helpful.  As for the HGTV and Star Wars, I agree neither is formal education, but both are great entertainment. 

MIke,

Thanks.  Great info.  The Real Estate Agent said they always stay rented, but I will ask actual vacancy rate.  Is it common practice to ask for actual rent $ amounts?  If so, would the real estate agent be prevy to that info?

Also, Is there an industry standard report or set of reports that I should ask for that would indicate vacancy rates, actual rental rates, etc?