All Forum Posts by: Alexander Ball

Hi Justin,

I'll tell you my short term goals, as they may line up with something you'd like to do.

In a sentence: FHA financing (possibly 203k) on a multifamily property.

In a paragraph: You should be eligible for a 3.5% down FHA loan, and if the property needs repairs you can do a 203k loan that will allow you to borrow whatever you need to get the property repaired. It's not quite 100% financing, but it is close. The issue comes with the time it takes to close. If you're competing for properties with investors that can offer cash and close in a week, you may have to pay a premium for the property to make it worth the seller. You live in that property, you have your 1-3 tenants pay your mortgage, and when you move out of that property it cash flows at $100 a door at least and you can do it all over again! That strategy alone could get you 4 properties, at that point the financing changes and you'll have to get more creative. But, 4 good solid quadplex deals could be $1600 a month of income!

I'd also love to hear more about your success @Douglass Benson.  I'm having a hard time finding a deal.  I'd love to hear about how we're you successful starting out.

Hi Kerri, Don't forget to do an introduction as a new member. You're in my area and I'd like to get to know you better and see how we can help each other. As far as the 50k goes I don't know the right answer for you but I have to say that it's probably "it depends". Is it a 1 year note that you will need to refinance out of quickly? Is it a family member not charging interest? Etc. It seems like you are newer like me and are struggling with what I am struggling with: finding deals. Perhaps marketing infrastructure is the best way to spend it? Good luck finding a good answer!

Hi Wayne, Thank you so much for your reply. So for example two people buy a house together, they get divorced and one does a Quit Claim Deed, which basically says they give up ownership of it. This is to be compared to a warranty deed, that says that the deed is guaranteed to be the only claim to the property? For the FSBO -- what would the Florida investments group's relationship be to the owner? Lender? Maybe the owner was lease to own or land contract or something? Thanks for the information and help. I really appreciate it.

I am 'bumping' this topic, not knowing if this is how this forum works or not.  I'd love your help in figuring out how these systems work and what the data means.

Hello BPers,

So today I went out driving for dollars, and after I came back to do some research on the properties I came across a couple things I wasn't able to figure out.

When a house is on the record for "selling" for $1, what does that typically mean?  How can I parse that information?

Secondly, I saw a house that was FSBO, and the number I called seemed to be a private person (it went to VM). However, the parcel look up showed an investment company from the other side of country listed as the first name on the taxes, and the second name on the taxes was more what I expected -- someone's name. What does that mean?

Thanks for your help deciphering this data.

--Alex

Done is better than perfect -- something I need to keep in my pocket!

You were extremely thorough and it seems to have paid off. I'd love to get a roommate into my 3 bedroom now but my girlfriend (understandably) is less thrilled with the aspect of losing our privacy.

Originally posted by @Patricia Hinojos:

Another thing to consider, if your market is mostly college students, is the semester rental cycle.  I've found that students look for and arrange for housing 6-9 months ahead of their need in most cases.  Be sure to make any adjustments with price and time of lease period to align with semesters or temporary vacancy may be more costly. [experience talking here :-) ]

I like @Kris Haskins idea about using "data" to show that it's the economic climate driving the adjustment.

Maybe you could offer an option for them:  shorter term lease (6 mo.) at full market or a smaller increase (below market) if they sign another full year.

 I also like @Kris Haskin's idea for helping to justify the raises, and help them understand your not a greedy wealthy fat cat landlord -- as many renter and probably younger people are likely to believe.

To hijack a little bit @Patricia Hinojos :

Can you talk to me a little bit more about this college rental cycle.  I'm looking at rental properties in the area of 2 different colleges, and I need to be solid on understanding the timing of the market.  My greatest rental fear in regards to vacancy is I have an empty property for 6 months or I'm tempted to lower my tenant standards to get someone in.

I'm assuming you see the cycle start in August/September, so to have leases start and end in those months.  And therefore, most students are leasing their next rental in January through March?  I'm afraid I won't be able to acquire this new property and have it move in ready until late spring early summer.  Am I going to be in trouble?

That's a pretty bathroom you made! Good job finding the deal. I've been really struggling to find my first, being ultra conservative. I hope I am prepared to make whatever comes my way work. Can't compete with those who can offer cash, so looking for an FHA qualified loan as I will be an owner occupant.