All Forum Posts by: Alex Deacon

@Reginald Lawal I buy 4-5 homes a month and I use probably 20 different hard money lenders. They can vary from 10% with zero points and a hand shake up to 15% with 5 points and they want your blood type and your first born. So my answer is there is no answer. Start working your network and get as many hard money lenders interested in you as possible. Shop around etc...  You wont have much leverage until you have a track record then the money will find you eventually with little effort from your end.

Good Luck

@Aaron Phillips  If you have never met him then I would ask to have a call with the gentleman. Once you get him on the phone you will know right away whats up. Ask him some specific questions about the property and location etc.. You will catch him in an easy lie. If you feel he is legit then find a reputable closing attorney who will hold the money in escrow. Therefore your money will be held by a third party.

@Aaron Phillipsundefined

@Tarsha Adeyemi Thats completely insane. If you havent signed a buyer agency agreement then you owe the agent nothing.  Typically the seller pays the commission and a bank that would have to approve the short sale would allow as much as 6% total. I would let the agent know that you are very displeased and are considering going to the agents Broker. If you get no satisfaction there then the local association of realtors or the state association. If you have already signed a buyer agency agreement and the fee has been disclosed then you are kind of in a sticky situation.

@Jared Viernes for you to learn the difference for your particular area I would start a list A ,B C and D areas. Write down all neighborhoods and classify them in these four groups.

A. High income levels low crime great school district and convienent location

B. Good schools medium to high income low crime

C. Below average schools average crime rate

D. Low income levels, bad schools and high crime.

@Roy Jeong Sounds like you are very new given your question and age. Take it slow. Get to know your market and others in your market like investors, agents, property managers etc... Before you can make any decisions you are in the educate yourself stage not the act stage. I would take at least a year and start there. One way to limit risk would be to buy a duplex, live in half and rent the other side as your first purchase. Here in Pittsburgh you can buy real estate reasonably priced or at least for now. prices are starting to go up. I help a lot of out of state and out of country investors buy here in Pittsburgh because the entry point in other areas of the country is so high that they dont have the resources to buy there or grow a significant portfolio.

Best of Luck to you

@Bodie Coates I love your general thinking and that you are willing to sacrifice. Thats the true heart of someone that has the "want to succeed at all costs".

Most people would never think of selling their home and to live in their In- Laws basement. This society today is I want it now and I dont want to sacrifice or pay for it. 

Now with that being said if anyone in this forum can predict the next recession and how it will affect each and every area across the nation than I am all ears. There are so many other options. 1. Pay off this house as fast as you can. Wait for the recession and then buy another one and rent this out? 2. While you have equity in the house get a LOC at a very low interest rate now while the appraised value is there so if a good deal comes along you will have the funds to act. Having a LOC available doesnt really cost you anything. 3. Sell now and then buy a fixer upper that you can gain instant equity in and then move into that one. You will pay no capital gains on your current sale and then if you decide to sell your new home in the future you will pay no capital gains tax on that one as long as you have lived there 2 years or more. 4. Buy duplex and live in one side and rent out the other after selling your current home. 5. There are so many other options>>>

I just want to get your brain thinking about all the things real estate can provide one of which is an endless amount of options and creativity that can make you $$$.

@Jared Viernes Your ability to evaluate an A,B,C and D area  will only come with time and experience in that particular market. I have been in Pittsburgh doing this for 25 years and I still dont know all the little neighborhoods well enough that I can make a quick decision about the area. Start looking heavily in the areas you want to invest, talk with other investors that are successful and experienced, talk with other agents, do some research on school districts etc...

I wish there was a clear cut easy answer but there isnt. I buy a lot of C and D areas but I like to buy in the better part of those areas. I call them C or D plus areas.

@Ben C. I think cash is going to give you a little bit more leverage and an advantage especially when you are going head to head with other offers. Your hard money lender should provide you with professional looking approval letter verses just one line stating "yes I have approved Ben for a loan"

Also in your offers if you are very confident in your abilities and the deal when you structure your offer you can Waive the financing contingency. That can put your hand money at risk but again if the deal is good and you are experienced and feel confident in the deal that type of structure is as good as cash to a seller.

@Kyle Wenger  I would hire a good agent to walk you through this first deal. One that is investor friendly and knows that side of real estate. All agents don't have the investor mindset. Or find another investor who has done this at a successful level to lend you a hand. 

It's not quite fair to enter an agreement if you are not 100% sure you have the funds lined up. You don't want to start in this business building a bad reputation. Make sure financing is secured. Seek the advice of a local agent to help you with the contracts. They are different in each state. Biggest thing to have in the contract is an inspection period that will allow you to void the contract if the inspections are not favorable.