All Forum Posts by: Alexandre Marques dos Santos

@Bryan Richardson

Thanks. I guess not being a contractor i overestimated the job ( every time i needed one, the excuses for a large bill were actually ridiculous).

Thanks a lot

@Matt Stewart

Thanks a lot. Very nice tips. On the layout i was thinking in searching for plant in town. Maybe i am too optimistic that i could get it...

@Matt Stewart

Thank you Matt. Very useful. I am always worried about pipes/ electrical. Electrical is a bit easier to estimate conditions, but i heard some guys even put cement in pipes. Plumbing is my worst nightmare!! That condition blows everything and you cannot see from outside ( example). I also get very worried about titles. Thanks for showing me the way ( title co).

@Nik Corbaxhi

Just adding to the precise comment above: important to know conditions: rehab needed? Taxes? Anything affecting the price? Close to school? Quality of the school? Transportation? Turnover in the area ( how frequently tenants changes houses) that potentially affects the vacancy.

@Brian Ness

The seller broker should have disclosed the foreclosure. If be didnt then you can use the fact in your favor. On the offer, i believe its not valid to the new owner. There was an event btw your offer and this closing which could be argued as relevant.

Going back to the seller broker, that potentially could be taken to the authorities. But he has fiduciary duties to seller, not to you. Talk to an attorney. My point is the omission of the foreclosure process.

@Brett Mason

When you scale, and use proceeds towards to new acquisitions, you improve outcome. When prices goes up, u can increase leverage with no disbursement. After some time you get inventory paid and get rich. The risk is when prices collapses. Then being leveraged u have big problem.

Personally i believe 15 years to be best outcome. Rates are lower, and you pay down quickly loan. But that is because i dont like much leverage as majority does, like 80/20. I am more a 50/50 guy as results in lower risk. So i am focused in gaining equity in the house quickly ( i even have houses fully paid at mom).

You will see tons of 30 yrs votes. That way the difference in installments are not of much difference. But its ur option.

Last, bank gives lower rates. But accessibility is more limited. So its all about what can you get, vis a vis to what you need.

I am new to BP. Would like inputs about the site auction.com. I checked few properties but seems you are bidding blank and could get into problems. Any tips? Title? Conditions of the house? How to proceed?

Anything is highly appreciated

@Ronald Isgate

I had some SFH in Texas, i transferes to my LLC post fact and did NOT pay any transfer tax, so i take your comment to a particular state.

In other words, its state by state.

The bank will most probably call the loan, as it is more risky to lend to a LLC as well. Being solely owner does not allow bank to call anything but the house ( i guess is the only asset in the LLC), so the risk perception increases.

You will have to negotiate with them and rates might increase as well.

You could negotiate with them, to give a personal guarantee on the lease contract. Not sure if they will accept or not, as a way to keep the loan at same standards (in terms of risk)

Thats my 2 cents

Keep us posted

Good luck

@Mike M.

Without more info is hard to give a precise analysis. At first sounds ok. You will be making a gross 18% ( considering you will pay 1 month rent and turnover every year. Need to subtract taxes, maintenance, need to add leverage.

In my first i consider the all cash investment.

What u need to consider:

Population

Amount of units rented in market

Turnover

Type of tenant ( fixed job, “student class”, etc)

Maintenance ( learning here in BP students are maintenance intensive)

Utilities cost

Insurance

Taxes

Also would get a trusted contractor to gimme another estimate.

In the end i would be more prepare to see if i would invest. Then what would be a good price.

@Theresa Harris

I see as 30% of agent as what i consider to be standard fee. But being referral, could negotiate.