All Forum Posts by: Marcus Auerbach

OK Alex I think that came out the wrong way. Did you really mean to say you are only friends with someone as long as they are usefull to you and then ... what? Some of my freinds are in RE, but most are not. Actually I dont have that many really good friends, but I know they are there for me even when I have nothing to offer and that goes both ways. And some of them sometimes tell me to shut up when I won't stop talking about REI and actually remind me that there are a few other things too worth talking about.

@Quan Booker be careful:

my hair stands up when I think about partnering up with a tenant, that has bad idea written all over it. Most likely your neighbor does not have an investor mindset - he wouldn't be renting for 5 years.

The ratio of $850 rent to $160k does not seem right. For  2x850  rent the price seems very high. You can PM me the address, I can tell you what I would pay. If he puts it on the market he will pay 6% in realtor commission, that's 11k. Plus he's not going to get asking price based on 850 rent.

Your student loan should not keep you from qualifying for a personal residence. I assume there are other reasons that ad to the total picture. Your bank owes you an explanation if they turn you down. Don't forget to count both security deposits to your down your down payment.

If you want to buy it and you can confirm its a solid deal make an agreement with him and ask for some time. You could sign an option to purchase. In the meantime get your credit cleaned up and think about how you can earn some extra bucks to get the down payment saved up.

By the way, as an investor your goal is to buy below fair market value and not full retail.

Good luck.

@Account Closed congratulations, that's a tough one and requires a lot of discipline and patience. I see you are from SFO so I understand why you have to, but it would not be my first choice. If I would see any chance to invest within driving distance I would stick to that.

How much would I pay myself for travel for a showing or to meet a contractor? How much would I spend for gas and milage or airfare? How much more do I have to pay for contractors and materials (on a rehab) because I can't easily shop around.

Ok, there are many different ways to deal with this, I assume you invest in newer buildings? I am dealing with homes built in the 50s and 60s, I could never do it from afar. 

@Hank Valdez what's wrong with Vista? I just did a quick search on Zillow and found 12 properties below 200k, half of them arround 100k. I agree with @Account Closed you need to learn as much as you can and I will ad that you do that best in your backyard (or at least close by), maybe within 30 min to an hour. Tons of deals in San Jacinto and Chedral City (according to Zillow). I bought my first property in West Milwaukee which is a 30 minute drive for me, but can easily be 60 minutes during rush hour (guess when I have time to go). I got smarter and focus now on an area about 15 minutes away in any traffic, because investing close by makes your life a lot easier. In any case, I dont need a plane...  

If you go out of State, be careful who you partner with. Generally speaking MOST of the people you will attract are either newbies or people who, well, have not been so succesful in the past, probably for a reason. Most people you would want to partner with get money from their bank for 5.5% and I am sure you'd expect more in return. Please note that I said "most", because there are GREAT investors out there who rely on PM for resons beyond their control or simply prefer it.

So if you find a local deal and get it under contract you will find the the comunity here on BP is always happy to help you out with any questions or issues you run into (and you dont even have to pay anything!!). Post your numbers and people will tell you if you should sign or run. So if you go on your own be confident that you are not really alone. Good luck!

@Account Closed most of the time I find water or moisture in a basement it is caused by impropper irrigated surface water. Either from gutters or from grading thats pitched towards the house. These things can be esaily corrected, just make sure that all surface water gets directed 10ft away from the foundation.

It get's a little bit more tricky if you are dealing with a faulty drain tile system. Most foundations I have seen have a pipe system arround the foundation that collects water underneath the house. The pipes drain into your sump from where it gets pumped out.

While on surface related issues you aften see the mositure high in the wall, if its drain tile related you will see water come trough the floor and up between the wall and the floor. Drain tile issues get expensive quickly, because you have to dig them up, either inside the basement or outside the foundation. A sewer specialist will inspect the system for you for about $200 and stick a camera in the pipes (drain tile).

Drain tile can get damaged for example by roots (Willow trees are really bad and will go a loog way to reach the pipes), but sometimes its just age.

The way you deal with the issue depends much on your strategy. Many investors will choose a "good enough" solution for a flip (morally questionable) or a professional repair if its  a long term hold or a well done flip.

@Wendell De Guzman a little, the 1 million without further explaination smells a bit to everyone who makes 5k on a deal or $300 a door. However, I like it. Good luck man!

@Max T. 6k? expensive furnace that is...

Agree with Dawn as long as the foundation is in good shape and the roof has some life left. Maybe I'd be more on the lower end as it's just a single car garage and the concrete driveway looks bad. I'd expect some repairs and deferred maintenance typical for foreclosures..

Welcome Jutiki! Join the milwaukee REIA, open meeting every month and great to meet people from the comunity. You should give it some thought what's in it for the mentor....

@Valerie Harris

... no need to. focus on finding a deal first, you will see there are plenty of buyers arround, just nobody will talk to you or take you serious until you have a deal.