All Forum Posts by: Anthony McEvoy

@Elias Kaplan - The best way to start is to find investor friendly realtors in the areas you want to focus to get information on the area.  I am also looking in Florida... on the Gulf side.  I called 3 realtors and they each have me on their automated email lists.  It has helped me gain a sense of pricing so I will KNOW when I see a deal.  Also, I look for cash flowing properties.  the daily emails have provided me an understanding of what it takes for cash flow between location, number of beds/baths, etc.

@Ryan C. - I would get pre-approved so you know you are not wasting any seller's time.  Even if your run the purchase through a company, they will more than likely run your personal credit.  Often times, an experienced seller will ask for some sort financial approval for their peace of mind.

Prepare yourself for the pre-approval.  Make sure you know what type of properties you are after... single family, duplex, four-plex, multi unit, commercial, etc.  Not every bank lends to every type of property.  They may also ask about your experience level or contingent funds, etc.

If you know you have a solid personal financial history, then I would go after the off-market in parallel.  If the seller asks about financials, just let them you are completing a pre-approval.

Everything often moves slower than you want... both the banks and sellers.

Connect and reach out if you want to discuss more!

@Nikolas Engel - Depends on the accounting categorization.  Significant renovation costs are most likely categorized as an asset and you can find that on a balance sheet.  Similar to the fact purchasing a property will not show up on the P&L.  Check with an accountant or do some research on P&L Statement, Balance Sheet, and Income Statement... which are the main accounting reports.

@Matthew Dawson - I totally understand the "extra cash" situation. It is why my approach is to use cash and to have the HELOC as a safety net since I can transfer the funds immediately via the internet. I am not a fan of paying interest if I do not have to.

@Matthew Dawson - If you have a HELOC that is truly readily available at a moments notice, then use the cash first. For instance, my HELOC is at the same bank as my checking account and I can easily transfer money. If not, then it may be beneficial to use some HELOC. It also depends on how much money you need and when you need it (rehab, multiple property purchases, inc). Another thing to think about is credit cards. Sometimes, I will use a credit card to make payments to have some additional time to see how things pan out and then potentially use my HELOC to pay off my credit card balance.

Side comment... Do you already have the $125k HELOC secured or is that your estimate? Have that secured first so you know what you truly have to work with.

@Lindsey Clark - Any deferred maintenance?  Or what does the owner say are some upcoming repairs (roof, mechanicals, etc.)?

When was it last purchased?  If fairly recent, what has the owner done and does it warrant your buying price compared to what they paid?

Also, I don't see property management (unless I am missing it) or do you plan to manage yourself from out of state?

@Eugene Lubman - You can bring the extra cash to closing to cover it.  Ask the seller if they want to finance the purchase for a year or two and then refinance.

Did you review the appraisal?  Do you agree with the inputs?  Double check the appraisal to ensure they have correct square footages, bedroom counts, bathroom counts, etc.  Also, take a look at the comparable buildings they used.  Ensure they are true comparable.

@Dan L. - Read this from FEMA. I would consult a professional civil engineer that has familiarity of flood areas.

@Antonio Passarelli - There really is not one encompassing degree you could get... at least not that I am aware of.  However, I think it also depends on what you want to do in the real estate industry.  Are you visionary?  Are you detail oriented?  Do want to do deal analysis or network/market to get deals?  Get a job that will help you get experience in the portion you want to focus on.  If you want to learn how to fix houses/buildings, then work with someone as a helper or work for a property manager.  You really can't go wrong getting experience in any aspect.

Is the structure in a floodplain or an area that floods often?  In some areas, they allow you to build your first floor above the flood level but then have to allow for water to flow freely under the structure.

The openings should still have grates over them to prevent wildlife from taking up residence underneath.