All Forum Posts by: Anthony McEvoy

@John Story: I do not want to say it is typical but definitely not uncommon for what you are looking at.  For that price point, they know the buying audience is not that large.  Therefore, they don't want to be wasting time.  My uncle was in that situation and would just avoid them until he got his portfolio funding from a financial institution.

It does stink because it is a chicken and the egg theory... how do you get capital unless you bring a deal to the team?  At the same time, how do you know it is a deal unless you view it?

Do you have some sort of proof that you can fund an operation like this from your other deals?  Something that would parallel a pre-qualification letter from a mortgage lender?

@Richard S.: Clearly there has not been any demand for the price.  You are asking the correct question... why?  Something has to be different for it to be worth it.

A few things... is it available for rent or for sale?  If for rent... was the price too high?  Is the market in the area changing?  Meaning... is there big development occurring or a major corporation moving in?  Did a Starbucks open up nearby?  If the area is stagnant, it probably is not worth it.

There is always the concern of non-use.  For example, is the plumbing still good?

@Brandon Wade: I wouldn't let the short sale deter you if everything else makes sense. It's coming near the end of the year and the bank may want it off the books. Remember, you can always retract your offer if the bank drags their feet. I live in a short sale and when I was looking for homes, my realtor kept me looking until the bank set a closing date. My realtor also did not have me do anything until the final two weeks before the closing in case the bank changed their mind. In addition, short sales are "as is" so an inspection is for my purpose and my lendor only.

@Michael Fulton: Honestly, the #askbp podcasts are quick... I literally started at show one and listened to them all in about 3 weeks. In general, even the shows that may seem like they do not line up with your strategy still have bits that everyone can learn from.

In Illinois, the  property tax assessors assess the land and structure separately.  That would get you in the ballpark if it is the same in Michigan.

Also, it may require some digging... but sometimes the land is purchased separately before the house is built.  For instance, a builder may purchase the land, build a house, then sell it.  In the transaction history, you would see the sale for the lot.

@Kiersten Vogt: Another approach is for her to tell you what she wants.  Ask her what is her ideal property to flip.  Also, have her prioritize what is truly a big deal and what is not.  For instance, she may prefer a house that is not on well and septic but if it meets every other criteria, she would entertain it.  If she has interest in different geographical areas, then make sure her wish list is the same for all areas.

Providing some more background may help generate more ideas on what you can do... How many have you done with her?  What price range are you typically finding these deals in?  Has she always been this way or did you get lucky the first time or two?

@Michael Fulton: It really depends on what you are out to do.

First, do you have savings or are you good with you finances?  Are you in a good financial situation?  If not, start with the Bigger Pockets Money podcasts.  They all have a general theme... spend less than what you make and pay down debts that are crippling you.  Also, read @Brandon Turner's book The Book on Investing in Real Estate with No (and Low) Money Down.

Depending on how you want to get in real estate depends on what is a great starting place.  If you know what you want to do, then read the titles of the episodes and the show notes and you will get a flavor of the topics.  If you don't know what you want to do, start at the latest and work your way back.  The real estate market has changed over the years since the Bigger Pockets podcast started and I feel the more recent ones are more guaranteed to be relevant.  Many of the older episodes are relevant but things are changing and some of the situations are no longer present in this economy.

Another quick way to get your feet wet are to listen to the #askBP podcasts... they are quick 5 - 7 minutes recordings.

@Grant H.:  Welcome to bigger pockets!

1. - I'll send you a private message - I would love to hear more of your story.  I see you have a link to your company in your profile.  I received my FAA license last year and have been dabbling in it myself!

2. - Read or "Read" [aka listen to audible books], listen to podcasts, and network - which it sounds like you are already doing.

3. - I assume you mean St. Charles, MO.  I live near St. Charles, IL.  But hey... I make my way to the St. Louis area at times.  I will connect with you if I am in the area.  Likewise if you make your way to the Chicago/East-Central IL area.

4. - I went back and listened to #AskBP podcasts - there's a 100 of them.  I also listen to general investing podcasts.  As you may have heard, it is recommended not to have all of your 'eggs in one basket'.  "The Investors Podcast" is one that I listen to.  In addition, I listen to Bloomberg podcasts - especially the Business of Sports.  I am interested in sports and business... so its a perfect combination!  Many concepts and topics carry over to other industries including real estate.  Finally, read the Bigger Pockets show notes... when they have a guest on who also has a podcast, they list it in there as well as their blogs.

Best of luck!

@Nick Hathoot: I would find out what the HOA fee covers. Often times it covers the garbage.

Would you be paying for the utilities or have the renters pay for the utilities?  If you, see if you can find out what previous electric bills and w/s bills are.  There are some parts of Chicago that do not have metered water services.  Those residents pay a flat fee based on a few factors (i.e. number of fixtures, square footage, etc.).

I assume you did your research on what you could rent this for...

As is, I would not pursue this deal unless you are banking on appreciation and being able to increase the rent quickly.  You would be losing around $2k a year.

@Christopher Freeman: I feel you have gone way above and beyond if that is how the lease reads.  Next step... I would take out the Wifi and leave them a modem.  They can connect their own Wifi to the modem provided... or are you providing Wifi to the whole building?

Honestly... look at the future of the tenant.  College student... so not a long time tenant most likely.  If she was someone that had the potential to be there for 5 years, then I may try a little more.