Providence, RI · Member since 2018 · 29 posts · 409 votes
7y
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.
Amherst, OH · Member since 2017 · 43 posts · 9 votes
7y
I’ll ask this question here since my post earlier gathered no response.
I made an offer of 90k on a house with an ARV of 160k.
The offer was countered at 115k
When I originally found this property my realtor told me the ARV would be mid 200k
Prior to making the offer he told me the ARV would be 170-180k (which was more believable for me)
I made the offer of 90k based on the 170k-180k ARV.
Finally after making the offer and receiving the counter my agent told me he "spoke with another realtor in the office and the ARV would be 145k-155k."
I was baffled as I made the initial offer based on an ARV 30k higher than what he just told me.
Question of my plan of action below -
The listing realtor is the Executrix of the property, should I contact her and make an offer with her directly so she gets my commission if accepted?
I believe that would give me an advantage while still getting the property for a potentially lower price.
Rental Property Investor · Davison, MI · Member since 2019 · 76 posts · 24 votes
7y
@Frank Patalano Right now I’m getting my finances in order. Aside from my mortgage, I’m almost debt free at this point. I have been doing a lot of reading and research to educate myself about RE investing. We are still looking at markets in Michigan that we want to invest in. My last hurdle before truly taking the plunge is getting my wife 100% on board.
While I would have no problems being creative for startup capital, she would prefer to save up for a year or two and use our own cash (after building our emergency fund). We could accomplish this by the end of 2021 having about 30k for a down payment.
All that being said, my goal is to purchase a 3BR SFR in Michigan to buy and hold by the end of 2020 that will cashflow at least $100 after accounting for PITI,other expenses, and management fees.
Rental Property Investor · Davison, MI · Member since 2019 · 76 posts · 24 votes
7y
@Vinay H. We must have the same friends!!! I get the same thing when I talk to people about RE investing! They also said I was crazy when I read The Total Money Makeover. I’ve now paid off nearly 50k in debt over the last year on a combine salary of about 110k/yr. Look out real estate......here we come!!!!
@Frank Patalano I am just learning about this investment opportunity for the first time in my life at 33. I'm currently just trying to learn as much as I can. My wife is eager to jump in head first but I feel we could get burned easily.
Real Estate Investor · New York, NY · Member since 2013 · 24 posts · 1 vote
7y
@Frank Patalano
I recently passed my exam and searching for the right broker!! I don’t know why finding the right broker is something out of the ordinary, when finding the right brokerage to allow you to utilize all your skills and allow your full potential is what i want and what everyone should want! I had one broker tell me i was competition, now please tell me how this isn’t relevant? If you go on my discussions you will see case and point you do not want to position yourself in a office that will not allow you to grow! Thank you
Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
7y
Biggest issue at the moment is finding funding for the majority of my buy and hold projects. I am currently reviewing my processes on how to effectively use hard money and refinance out of it. If any one has an success stories they would like to share with me I am willing to learn and be a part. Thanks
Homeowner · Altamonte Springs, FL · Member since 2018 · 29 posts · 14 votes
7y
Sounds like you're realtor is just throwing numbers at you. That's about a 100k difference from mid 200s to mid 100s. He's not doing his due diligence. Ask around for a different realtor that other people have used and recommend. Do the due diligence yourself, which will take some research and practice to be competent at. I don't know the details on the property but it sounds like 115k is too high, did you use the calculator tools here on BP? if 90k was where the numbers worked for you, then it's that simple. Don't get emotionally involved, there are plenty of other houses in the market. It's just a numbers game.
I’ll ask this question here since my post earlier gathered no response.
I made an offer of 90k on a house with an ARV of 160k.
The offer was countered at 115k
When I originally found this property my realtor told me the ARV would be mid 200k
Prior to making the offer he told me the ARV would be 170-180k (which was more believable for me)
I made the offer of 90k based on the 170k-180k ARV.
Finally after making the offer and receiving the counter my agent told me he "spoke with another realtor in the office and the ARV would be 145k-155k."
I was baffled as I made the initial offer based on an ARV 30k higher than what he just told me.
Question of my plan of action below -
The listing realtor is the Executrix of the property, should I contact her and make an offer with her directly so she gets my commission if accepted?
I believe that would give me an advantage while still getting the property for a potentially lower price.
Rental Property Investor · Savannah, GA · Member since 2018 · 174 posts · 129 votes
7y
@Frank Patalano
Closing on my first home as a house hack to then turn into a rental when I move in a year. But have basically maxed out my Debt/income. Not sure how to go about gaining another property unless I can find something with owner financing. Any ideas of how to expand faster?
Rental Property Investor · Whittier, CA · Member since 2018 · 68 posts · 18 votes
7y
@Frank Patalano time is holding me back i work crazy hours cant continue buying more properties.... soooo i decided to burn the boats and quitting my job already gave them notice waiting on that in mean time reading up again books as reminder and opening up credit cards to use in the business. My DTI is extremly low so i feel good and not overwhelmed yet lol
Rental Property Investor · Timmins, Ontario · Member since 2019 · 14 posts · 4 votes
7y
@Frank Patalano
For me, it’s about informing myself and understanding how private lender/seller financing and other ways to get started with low capital. Some of us don’t have the time or patience to save thousands for capital to get started.
Also, learning how to analyze properties. Learning what is and isn’t a good deal or opportunity.
One other thing, is convincing those in my immediate circle that this will work. Fighting traditional thinking and knowing that building a portfolio is doable. Ignoring these people are not as hard if they are your main support system.
I’ll ask this question here since my post earlier gathered no response.
I made an offer of 90k on a house with an ARV of 160k.
The offer was countered at 115k
When I originally found this property my realtor told me the ARV would be mid 200k
Prior to making the offer he told me the ARV would be 170-180k (which was more believable for me)
I made the offer of 90k based on the 170k-180k ARV.
Finally after making the offer and receiving the counter my agent told me he "spoke with another realtor in the office and the ARV would be 145k-155k."
I was baffled as I made the initial offer based on an ARV 30k higher than what he just told me.
Question of my plan of action below -
The listing realtor is the Executrix of the property, should I contact her and make an offer with her directly so she gets my commission if accepted?
I believe that would give me an advantage while still getting the property for a potentially lower price.
Hoping to get some input here, thank you!
Jaron
I'm a little pissed at your agent but if you buy this property he will still expect to be compensated and could probably legally fight for one.
Figure out what the property is worth. Do you have a friend that knows alot about real estate? Get an independent opinion.
There is a massive problem that you have ARVs all over the map.
There is nothing wrong with walking. Think about it they didn't accept your offer at 90 when you thought it was worth 170. It sure as hell isnt worth 115 if you think that the arv is 150.
@Frank Patalano Right now I’m getting my finances in order. Aside from my mortgage, I’m almost debt free at this point. I have been doing a lot of reading and research to educate myself about RE investing. We are still looking at markets in Michigan that we want to invest in. My last hurdle before truly taking the plunge is getting my wife 100% on board.
While I would have no problems being creative for startup capital, she would prefer to save up for a year or two and use our own cash (after building our emergency fund). We could accomplish this by the end of 2021 having about 30k for a down payment.
All that being said, my goal is to purchase a 3BR SFR in Michigan to buy and hold by the end of 2020 that will cashflow at least $100 after accounting for PITI,other expenses, and management fees.
If you can get your wife on board it would be awesome. Sounds like you are a Dave Ramsey follower. She is still ok with you borrowing money?
If it were me I would set a deadline of say 1 year from now to start looking at properties with the intention of investing $30K. That is compromising between you and her. Then you still have a chance of meeting your goal and she still gets closer to her goal.
@Frank Patalano I am just learning about this investment opportunity for the first time in my life at 33. I'm currently just trying to learn as much as I can. My wife is eager to jump in head first but I feel we could get burned easily.
You can get burned/educated.
I lost money on my first deal. It's a good thing that I didn't give up.
I recently passed my exam and searching for the right broker!! I don’t know why finding the right broker is something out of the ordinary, when finding the right brokerage to allow you to utilize all your skills and allow your full potential is what i want and what everyone should want! I had one broker tell me i was competition, now please tell me how this isn’t relevant? If you go on my discussions you will see case and point you do not want to position yourself in a office that will not allow you to grow! Thank you
I understand now. I did not know that you were an agent. You could have been an investor looking for the right broker to work with. Or you could have been referring to a mortgage broker or insurance broker.
Finding a good real estate broker is important. That competition comment is just crazy dog eat dog BS. At the same time don't wait for the perfect fit. If I waited for the perfect real estate deal, I would still be waiting. Get out there and find a good broker with the possibility of growth. You can always move on if you find a better fit later. Many of my friends have done something similar.
Biggest issue at the moment is finding funding for the majority of my buy and hold projects. I am currently reviewing my processes on how to effectively use hard money and refinance out of it. If any one has an success stories they would like to share with me I am willing to learn and be a part. Thanks
Most of my earlier deals involved me buying with hard money and then refinancing out of it within a year.
If you have too much deal flow find a partner or wholesale a few.
Sounds like you're realtor is just throwing numbers at you. That's about a 100k difference from mid 200s to mid 100s. He's not doing his due diligence. Ask around for a different realtor that other people have used and recommend. Do the due diligence yourself, which will take some research and practice to be competent at. I don't know the details on the property but it sounds like 115k is too high, did you use the calculator tools here on BP? if 90k was where the numbers worked for you, then it's that simple. Don't get emotionally involved, there are plenty of other houses in the market. It's just a numbers game.
I’ll ask this question here since my post earlier gathered no response.
I made an offer of 90k on a house with an ARV of 160k.
The offer was countered at 115k
When I originally found this property my realtor told me the ARV would be mid 200k
Prior to making the offer he told me the ARV would be 170-180k (which was more believable for me)
I made the offer of 90k based on the 170k-180k ARV.
Finally after making the offer and receiving the counter my agent told me he "spoke with another realtor in the office and the ARV would be 145k-155k."
I was baffled as I made the initial offer based on an ARV 30k higher than what he just told me.
Question of my plan of action below -
The listing realtor is the Executrix of the property, should I contact her and make an offer with her directly so she gets my commission if accepted?
I believe that would give me an advantage while still getting the property for a potentially lower price.
Closing on my first home as a house hack to then turn into a rental when I move in a year. But have basically maxed out my Debt/income. Not sure how to go about gaining another property unless I can find something with owner financing. Any ideas of how to expand faster?
Partner with someone that has money but no time. You are an experienced (slightly) investor now. They will look up to you.
@Frank Patalano time is holding me back i work crazy hours cant continue buying more properties.... soooo i decided to burn the boats and quitting my job already gave them notice waiting on that in mean time reading up again books as reminder and opening up credit cards to use in the business. My DTI is extremly low so i feel good and not overwhelmed yet lol
I did something similar but it took me a while to get there.
Perhaps you can become a rich man by building smaller multifamilies.
There is nothing wrong with setting your sights on buying a bigger multi. In the United States we can pool resources with a number of investor and buy it together. You would have the control but they would be owners. We call it syndications. It is like setting up a company where you are running it.
How expensive is a single family in your area? What is the monthly rent that you can charge for it?
Around the area where I live, single family houses are usually 200k+ euros. Weirdest thing around here is that people don't usually rent single family. Those that are rented are asked for around 1500 euros/month.
I guess it's because of the old "dream" that everyone want's to own their single family house.
Around here people tend to invest in apartments, but I don't like the idea that other apartment owners or their tenants can lower the buildings value, due to poor maintenance or bad decisions. Here every apartment building has their own administration that is supposed to make decisions regarding to building and its maintenance. And the administration must be formed from people living in that building.
We have had quite a few news articles about that apartment buildings are in bad shape because especially elder people do not want to make these rehabs (piping, windows, etc.). And these administrations are full of elders since younger people are too lazy or afraid of responsibility.
Wow. That is different. Do they own the units individually? If so we call that a condominium development.
If you are the owner, you make the decisions. Such as we own a 9 unit building. We own the building, charge rent, and perform maintenance. The tenants pay their own heat and electric.
For me, it’s about informing myself and understanding how private lender/seller financing and other ways to get started with low capital. Some of us don’t have the time or patience to save thousands for capital to get started.
Also, learning how to analyze properties. Learning what is and isn’t a good deal or opportunity.
One other thing, is convincing those in my immediate circle that this will work. Fighting traditional thinking and knowing that building a portfolio is doable. Ignoring these people are not as hard if they are your main support system.
I'm going to start with not having the time or patience comment. You need some patience but you don't need time to get started.
If you have one of the following strengths then you can be successful at real estate.
Knowledge/Experience
Time
Money
If you are strong in one, partner with people who have the other things covered.
If you are strong at none, figure out which one that you want to work on and get started.