All Forum Posts by: Antonio Chelala

Hey Antonio! 

Buying a co-op is fine but I think you might want to consider a condo instead? If all else is equal I would want something that's rentable. Also some co-ops are rentable after you have lived there for a few years so I would prioritize one of those to leave yourself the most flexibility. Even if you don't end up selling it when you move you can take an equity loan on the unit and continue to rent it.

best of luck!

Hey @Antonio Chelala, the firm will most likely charge their hourly rate. As long as the contract you provide is pretty comprehensive it should only cost an extra couple hundred bucks. And, yes, they will help you with filling out portions of the contract if it's incomplete or you have questions. 

They can also provide you a contract but that will be more expensive.

@Antonio Chelala

Long-distance real estate investing is a great way to get started in real estate if you live in an area with low demand for rentals. However, there are more risks associated with managing a rental remotely, since you’re not able to be as present as the landlord.

To help you along the process, here are seven tips on remote real estate investing that are important to keep in mind.

1. Research Markets You’re Interested in
Research markets you’re interested in to check the demand for rentals and the types of properties available. Rental reports, like the Realtor.com® Rental Housing Forecast, share insights on rental market trends and predictions that landlords, tenants, and real estate investors can expect in the upcoming year.

There are also certain things you’ll want to look out for in a rental property, such as property taxes, local schools, average rents, amenities, and property history before looking to buy. By researching markets you’re interested in and the current rental market, you can get a better understanding of which markets are worth investing in.

2. Check Your Property’s Profitability
Finding a rental property that meets your criteria is just the first step of real estate investing. You’ll also want to make sure the property can help generate passive income that can cover operating expenses or other property-related costs.

After totaling your operating expenses and determining a rent price, use a rental property calculator to see if the property you’re interested in would be profitable. The Avail Rental Property Calculator is a free resource you can use to help you determine which property has a higher chance of producing profits from rent payments, as well as whether or not your rent price or operating expenses need to be adjusted.

3. Find Reliable Contractors
The key to long-distance real estate investing is finding a team of reliable contractors that can help fix maintenance issues or be the go-to person for your tenants. Platforms like Yelp, Thumbtack, and TaskRabbit are good resources to use to find highly-rated contractors to rely on.

You can also hire a property manager close to the property to manage all maintenance and repair issues. If you do decide to hire a property manager, you’ll want to ensure they’re aware of local landlord-tenant laws and local ordinances they’ll need to abide by when managing your tenants.

4. Implement a Solid Tenant Screening Process
Implementing a strong tenant screening process increases the likelihood of finding a tenant that pays rent on time and takes care of your property. You can request a rental application, credit check, criminal check, and eviction check to get a full picture on prospective tenants. Some states restrict exactly how much a landlord can screen a tenant, so make sure the process you implement does not violate local regulations.

5. Leverage Landlord Software to Manage Your Rentals
Property management software platforms like Avail allow you to streamline the rental process — all in one place. Instead of having to use more than one website, you can screen tenants, collect rent payments, create lawyer-reviewed lease agreements, manage maintenance requests, and more through one platform.

If you decide to hire a property manager, they can also use Avail to manage your rental, which you can access at any point.

6. Request Videos and Photos of the Property
Thanks to smartphones, you can now request videos and photos of your property from your tenants throughout the lease term. Videos and photos allow you to see the current state of your property or get a better look at maintenance issues. However, it’s important to never rely solely on videos and photos since they can be easily manipulated by the sender.

7. Schedule Annual Visits
It’s important to schedule a visit at least once a year to get a closer look at the current state of your rental. Most states do not allow the landlord to show up to the property without proper notice, so your tenants will need to be notified before the visit.

During the visit, you can thoroughly check your property and ask your tenants about any issues they may be experiencing.

All the best!

Should you ask if the seller is interested in seller financing? 

It doesn't hurt to try. There are a lot of moving parts with seller financing but in short there are 3 main components

1. Price

2. Interest rate

3. Down payment

It is our job to find out what is most important to the seller and try to satisfy that by modifying the other 2 terms to make the deal work for you. If the seller wants x price that is a little higher than you would like to pay, you could make it work by setting a favorable interest rate and down payment. 

What is the typical down payment? 

I've seen plenty of SF deals with 0% down, others with 20% or more, but from what I have seen many buyers start to lose interest if they are having to put in more than 10% down. 

@Antonio Chelala, I don't have a seller financing template contract but I'm sure some of the courses/programs that are out there have one. Contracts to purchase real estate will be state-specific. 

For the duplex we just secured with seller financing, I found a template offer to purchase contract online specific to the state and made sure it contained everything I'm used to seeing in a purchase contract. Then, I added addendums as applicable and a promissory note. Then, had our law firm add anything else that was needed. 

You can write into the contract that there will be no penalties for paying off the note in full early. That's the beauty of creative finance. Everything is up to you and the other party in the transaction. You have a lot more control over the terms of the agreement.