All Forum Posts by: Noah McPherson

Hmmm. I like the strategy of not increasing the rent of someone you like. I feel like they'll appreciate that a lot and treat you well. 10% would be pushing it. The super small increase strat seems great though. Should keep the tenant happy, and it's not too aggressive. Thanks guys!

Can you guys enlighten me with a breakdown of holding costs? What do you pay? The price of the loan, utilities, insurance, and maybe half a year of property taxes or so. What else is there?

How much do you guys raise your rents annually? I have the opportunity to write a percentage increase into my lease. What's fair?

@Andy Sabisch @John Woodrich It would not be fun for the owner to get their property back in the redemption period. Looks like an opportunity though. Also, I've heard about banks and auction websites winning the bids too.

@Kevin Jennings My duplex was at just under 1%. It still cash flows about $330 dollars, but I save $200 of that per month for capex and maintenance. Keep in mind, on market deals under 1% are okay sometimes. Sometimes the last landlord didn't raise the rent or they left you an opportunity to update the property. In either case, you can raise the rents.

Thanks for the feedback guys. Basically what I gather from your responses is to be respectful to your agents time, which is understandable. A lot of people in real estate are sensitive to wasted time. I will make sure I review sales contracts independently, look at properties independently, and know get an understanding of the numbers on the deal independently.  

Hello BP,

I'm currently preparing for my first BRRRR deal in the Duluth, MN area, and I'm curious about a couple things. Forgive my naivety, as I'm just a beginner.

Anyways, I am considering pursuing a foreclosure (possibly auctioned). I read on my county website there is typically a contingency period on foreclosures, at least when using a regular bank. First, Is it typical to get a contingency with hard money? Second, Is it typical to get contingencies on auctioned properties?

Thanks guys

@Nick C. Thanks for the feedback. There's a reason I didn't do that first. It's because asking them to find a way to assist them is more work than you finding the way you can assist them and asking if you can do it for them. At least that's what I've heard successful people say.

Hey agents,

Let's say I want to build a relationship with my real estate agent who I'd like to learn from because they are more advanced in real estate than me. What do you guys do that you don't like to do? How could I provide them value and reduce their work load a bit? Thanks!

I appreciate the advice! I'll try expanding my area a little more.