Having just recently bought my first property, I know for myself what was holding me back was the fear that I would overpay, especially in this type of a market. I would get analysis paralysis and basically talk myself out of every property I looked at.
@Frank Patalano I’m glad you asked! We are trying to figure out what transactions are legal to do in Alaska. We wanted to do a straight Option Deal, find a cash buyer and close on the home having the seller deed directly to our new buyer. However, we are being told that is “procuring a buyer for a 3rd party without a Realtor License” and that it’s “illegal.” Actually, we have been told that we cannot market/sell a house until our name is on the deed. Furthermore, we are told that we cannot get on the deed unless it’s free and clear without the bank calling the loan due.
On the other hand, we are being told by someone else that we are a “Principal” in the transaction and to proceed with marketing the house if we get it on contract.
Would you happen to have any insight on this issue? If we had a signed contract, would that make us a “principal” in the transaction and therefore legally able to market the home for sale even before we close on it? Also, do you happen to know of any Real Estate Investors in Alaska that we can connect with?
@Frank Patalano I’m glad you asked! We are trying to figure out what transactions are legal to do in Alaska. We wanted to do a straight Option Deal, find a cash buyer and close on the home having the seller deed directly to our new buyer. However, we are being told that is “procuring a buyer for a 3rd party without a Realtor License” and that it’s “illegal.” Actually, we have been told that we cannot market/sell a house until our name is on the deed. Furthermore, we are told that we cannot get on the deed unless it’s free and clear without the bank calling the loan due.
On the other hand, we are being told by someone else that we are a “Principal” in the transaction and to proceed with marketing the house if we get it on contract.
Would you happen to have any insight on this issue? If we had a signed contract, would that make us a “principal” in the transaction and therefore legally able to market the home for sale even before we close on it? Also, do you happen to know of any Real Estate Investors in Alaska that we can connect with?
I don't know Alaskan laws.I do have an investor that I know that lives in Alaska but I don't think that she does any wholesaling.
I would do 2 things. #1. Go to your local real estate meeting. Find a couple wholesalers and ask a couple questions.
#2 Then I would find an investor friendly attorney. They will probably give you a free consultation.
There are many agents whom are anti-wholesaler.
You probably can't sell a house but you might be able to sell a contract in which the buyer is supposed to buy a house.
Thank you so much for your guidance. I'd love to get connected with the investor you know that lives in Alaska. We actually would like to work mostly with terms (ie; Lease Options, Seller Financing). Regardless of what that Investor is doing, I'm sure I could pick up a few tips here and there anyway, so that would be great! As for finding an "investor-friendly attorney"...how exactly can I determine if they are investor-friendly? I did have one free consult already and one paid consultation. I don't think we have many to choose from here in Juneau and am wanting to meet with at least one more attorney. I have a strange feeling that we did not land in the lap of an investor-friendly attorney. It's been sort of discouraging. When you say there are many "agents whom are anti-wholesaler"...are you speaking of Real Estate Agents or are you still talking about the Attorneys?
Thank you so much for your guidance. I'd love to get connected with the investor you know that lives in Alaska. We actually would like to work mostly with terms (ie; Lease Options, Seller Financing). Regardless of what that Investor is doing, I'm sure I could pick up a few tips here and there anyway, so that would be great! As for finding an "investor-friendly attorney"...how exactly can I determine if they are investor-friendly? I did have one free consult already and one paid consultation. I don't think we have many to choose from here in Juneau and am wanting to meet with at least one more attorney. I have a strange feeling that we did not land in the lap of an investor-friendly attorney. It's been sort of discouraging. When you say there are many "agents whom are anti-wholesaler"...are you speaking of Real Estate Agents or are you still talking about the Attorneys?
I have decided to buy my 1st property within 6 month
I need help with the formulation to see if the property cash flow.
Wich elements do I have to be looking at?
The first thing that you need to do is set goals on education and networking. Read some many minutes a day, listen to so many minutes of podcast everyday. Try to get to one meet up every week. There has got to be reia meetings going on in West Palm Beach. Are you going to be investing locally, or farther out such as Orlando, Miami. Also work on making or getting a good calculator. Try the BiggerPockets one. Over time you may find one do you like better. If you are buying a multifamily some agents will have income and expense numbers already. Those numbers will not be 100% accurate but it will be a start.
@Frank Patalano I am starting to get discouraged because I am losing out to cash buyers in the C neighborhoods I’m shopping in. Cash flow looks good on paper in this particular zip code and I think everyone knows it. Houses that are good deals last about 48hrs. I literally can’t even get the paperwork together fast enough. It’s tough because I don’t feel capitalized enough to get a seat at the table. I’m not giving up though.
@Jacob Gelinas This describes me almost exactly right now. How did you overcome this? Did you manage your expectations so that you realized what a fair offer price might really be?
@Frank Patalano I am starting to get discouraged because I am losing out to cash buyers in the C neighborhoods I’m shopping in. Cash flow looks good on paper in this particular zip code and I think everyone knows it. Houses that are good deals last about 48hrs. I literally can’t even get the paperwork together fast enough. It’s tough because I don’t feel capitalized enough to get a seat at the table. I’m not giving up though.
What's holding me back isn't the knowledge as I think I have a pretty good understanding of the basics.
I am unsure of my job in the next 2 years and of what to do with my only property.
I made another post about it in the forums earlier today.
Cash out and take the 55k minus all the selling fees or rent out for 1500-1575 per month with 250 per month cash flow.
What would you do with a $50,000?
I would put the money down on another house and there would be enough left to put into repairs so I can build equity in over time.
Part of me just wants to start fresh. The house I am in now has potential, but I don't have the funds nor the time to make that happen right now. The realtor I had that came out pointed out the potential this property has to really maximize my profit. Finishing the basement with another bathroom and bedroom as well as redoing the kitchen, and bathroom would very modestly add another 35-50k to the sales price.
I feel a little bit burned out based on all the things I have had to fix already. I think I am in over my head without some guidance or money to do all these repairs.
What's holding me back isn't the knowledge as I think I have a pretty good understanding of the basics.
I am unsure of my job in the next 2 years and of what to do with my only property.
I made another post about it in the forums earlier today.
Cash out and take the 55k minus all the selling fees or rent out for 1500-1575 per month with 250 per month cash flow.
What would you do with a $50,000?
I would put the money down on another house and there would be enough left to put into repairs so I can build equity in over time.
Part of me just wants to start fresh. The house I am in now has potential, but I don't have the funds nor the time to make that happen right now. The realtor I had that came out pointed out the potential this property has to really maximize my profit. Finishing the basement with another bathroom and bedroom as well as redoing the kitchen, and bathroom would very modestly add another 35-50k to the sales price.
I feel a little bit burned out based on all the things I have had to fix already. I think I am in over my head without some guidance or money to do all these repairs.
Sell it! Basically you are getting more than 10 years of rental profit in less than three months. Grow that portfolio.
You will get better at understanding numbers by practicing. Look at properties and estimate income and expense numbers. Once you have one looks like you can make money on it then you should have other people look at it.
I haven't purchased my first property yet. I want to purchase a full duplex. I keep going back and fourth on doing a BRRR or just buying a full duplex that's move in ready. I know that a BRRR property would make more money and probably more business since but it seems like more risk and more cash is needed up front.
crap credit from a divorce, but my score is up from a 492 last year to 683. Debt free and currently saving a down payment. I should be over 700 and have enough of a down payment for a duplex or triplex house hack by next year