All Forum Posts by: Jennifer Lee

that's interesting, we don't have that on our MLS. BUT I do see

*CASH BUYERS only: that is usually distressed, it will probably not qualify financing

*No FHA: Means it probably will not pass FHA inspection, or had FAILED

*FHA ok: means they went through the inspection and passed, but deal fell through, OR agent thinks it will pass FHA

Do we setup a time to see the house, at that time give them an application form?  I would setup a time, usually I like to do 1 on 1 showing, or space them in 30 mins interval, and let them know other ppl are seeing it.  IF they are interested you can hand  them an application.  I use mysmartmoves.com, we can do it on the spot if they are interested, if they have a smart phone.

The application is a template from Zillow, just have personal info and bank account balance(s), have you been evicted, etc.

That's fine, I download one from the internet.  Its good to have it on paper bc mysmartmoves.com doesnt give current landlord info and referral and drive license details etc

The part I am most confused about is the credit check, when do you run it and who pays for it? How about a refund if they don't qualify? 

Credit check, I use mysmartmoves.com. It has an option of TENANT pay or LANDLORD pay. If I gave them an application, I ask them to give me $35-40, and I pay,  If they have Credit Card, all I need is their email, and I start the app, they pay and I get the report, it takes 2 mins. If they don't qualify, nothing... they are out the FEE

Which website do you recommend to do credit AND background check?

I use mysmartmoves.com for credit and background.  i also go to the FREE Public state judicial site to check eviction (that is what is good about the paper application, you can chk their references) and Police Site for criminal $10 in my area

What about verification of income? Do you ask for a last year's W2?

YES, that after they qualify the credit check and we are talking lease

I would FIGHT the urge to buy the next! BUYING IS THE EASIEST PROCESS of investing!!!!!!! 

I would USE THIS TIME TO BUILD YOUR NETWORK! and LEARN the RENTAL BUISNESS, and see if you have nack of REHAB/FLIP.

-------

I have a client, they bought 1 unit from me and was starting a huge GUT RENOV. they were so excited bc our buying process was so "easy", they bought 2 more (duplex and commercial).

I kept asking them STOP, and stabilize.  They haven't started the Gut renov. but bc of good financing we bought the other 2.  

and b/c I keep urging them to slow down, they bought more with another agent.

Fast forward to today, they only have 1 of the duplex rented... the GUT renov is being completed this week with almost a 4 months delay, B/C "OMG WORKING WITH GC IS A @#$@#$%" , They haven't even started on the commercial they bought with me.  Good thing is we bought all of them at right price, they have holding power.

They haven't even experienced landlording yet.

We are still very close, they do not regret buying the properties, just hoped they had TIME and EXPERTISE before jumping into 3 different kinds of investing, Duplex, Flip and Commercial rehab

I think 1 bed works if it's in a multi plex situation. I have a studio and 1 bed, I have no issues and they rent FAST bc of the location and need.  PUBLIC TRANSPORT ACCESS

my tenant is retired, lives alone, or couple getting started or need the space b/c they are getting act together.

I think 1 bed works in student rental, transitional area.

Wow interesting, thanks for sharing

I think best to bring your vendors to see the actual cost of the deferred maintenance. so you can make a plan.  I think when you buy/hold you have to start planning for roof, HVAC, water boiler replacements from DAY 1.

Then you can buy right!

------

Here is an example from my porfolio:

I bought a 5 mixed used unit for 200K, they were asking 500K, dropped to 350K

It was missing a ROOF on one of the units.  They were hoping the rental income potential would be enough for someone to bite.  Also it was 75% VACANT!

We put in the offer at 200K (I think I overpaid now, LOL)

I had a 5 year plan, 100K to get the build back into shape.

I am 4 yrs of owning the bldg were are ahead of schedule but this year will make it 100K and when we finish renting and renovating the last unit, we will be at 100% occupancy, and at 18% cap rate.

NEW Roof, All new HVAC for 5 unit (2 commercial, 3 apt), Electrical, Plumbing and rehabbed all spaces.

THESE numbers were determined before I bought the units.  The new rent rates were also determined before  we bought.

You don't need to be in real estate to be good at RE investing. Some of my successful investor has full time jobs that gives them good income, and real estate is a form of wealth building.

I think being an agent is a good start, but if I had to use my realtor income to buy anything I would be doomed.  We acquire our invest through my husband's W-2 Job and credit ;p

HI Welcome to BP and Pittsburgh investing ;p I am a fellow investor and realtor.  Pittsburgh ACRE is a good place to start. @Jerry Kisasonak is also a good source to contact with.  He is a local investor/agent, he also has a FB investor group and runs meet up ;p

@Jeff TI is tenant improvement 

the construction needed for tenant to be in business. 

salon: plumbing and electrical.  the tenant is responsible for the equipment.

restaurant: fire supression system, health and safety. building kitchen to standard. 

Office retail: extra offices bathroom, 

medical: plumbing electrical handicap parking, offices etc

this has been very interesting. I guess this proves that commercial real estate is very unique.  it's not a cookie cutter transaction like residential. 

everything is based on the individuals and property. no 2 is alike.

everyone's investing motives are different,  5% cap may work for some and min 10 % for another.  the problem with cap rate is it doesn't talk about financing. so I'm ok with 5% cap rate if my financing cost is lower or non-existence. 

I'm a cash buyer mostly, that's why my clients don't understand why I do what I do.  im very slow and methodical investor. I'm only learning about the benefits of debt.

-----

I remember the lender having problems evaluating my bldg. they had to use both. but it was also the draft of our new leases. the fact that we have experience and my husbands w2 and my track record that sealed the deal.

maybe that's why I don't recall what method they used to evaluate.