All Forum Posts by: Alexander Ball

If I do make an offer on the house, I've considered making it a section 8 home. If I do this, do I need to find a contractor that specializes in section 8 inspections? Should I get the inspector to check it out before? Should I stay away from section 8 because this house is in a "student ghetto" area?

Hey Mikes, thanks for the great replies! I had no idea that the local banks would do something like that. It just always seemed to me to be a formula that they can't bend, but maybe that is because I am working with Chase Bank now.

Now, I have a related but possibly silly question. You are a lender and a 22 year old kid approaches you, well dressed, and prepared, but he has LONG HAIR. Is this going to keep me from getting a loan? I know its silly but it would be heart breaking if my vanity kept me from getting a loan.

Bite your lip and give any serious replies that you might have.

Mr. Shadow your post here is so motivating. It really shows how inexperience can stop you before you even start. Thanks for the advice!

Mr. Sedwick, I'm afraid I just dont trust my marketing skills to get that done. I have no experience there whatsoever, and I think trying to market, make cold-calls, and setting up my first RE deal could be a recipe for disaster, but I have been trying to find more Subject-2 and contract for deed deals.

Wheatie I would be interested in how you came up with your max price as well. I saw you mention something about excel in another post, but I have little experience with excel.

Thanks so much for your reply! My guess is the same as yours, I will be putting a lot of money into the house before I can rent it out. I've read multiple books on REI and many have said that I should avoid fixer-upper types because I just don't have the experience.

I don't know how old the appraisal is. I've been told to analyze my potential properties with a cynical eye, and I imagine that the listing could have been inaccurate, or it could have been an old appraisal. To be honest, I don't even know how an appraisal is done. Is this an "official appraisal"? Is there such a thing?

As far as house values go, this is SE Michigan, so they are dropping. So I imagine this is not going to be a deal. I am probably looking at an inflated appraisal on top of a long closing time with huge repair costs.

But that's how it goes, right? This will be the first property I have gone to look at, and I've been told to be prepared to look at 100 before I buy one. A journey of a thousand miles begins with one step.

Thanks for the reply. Sub-2 is something I have definitely been considering. Any other ideas?

Great tools here, thanks.

I'm going on tuesday to check out a 5 bedroom rental property that is a short sale and listed at 85k. However, the description says the house is valued at 185k. How could this be? How could a house be listed at 100k less than an appraisal. Can I expect to see a house in need of dire repairs? I've ran the numbers and if I can keep the house going at a 1400 dollar a month income from rents, and will be netting almost 400 dollars a month. Is this deal still sitting here because it is a short sale and people don't want to wait long for it to close?

I am about to start looking at some homes that I have scouted with a Realtor. My plan is to buy, hold, and rent the homes that I buy, but I am having a little bit of financing problems.

Mainly, I have no income. I am sick of working to make other people rich, and I want to make myself rich! So, I am going to be taking a lot of classes this semester and I want to make managing and investing and properties my income. I would love to graduate in two years with two houses well on their ways to be paid off.

However, I am having a big problem overcoming this DTI ratio. I have a large amount of capital, and not bad credit, but I can't prove my income is high enough to take on the debt. This is frustrating because 1) I am only looking at properties with a positive cash flow and 2) I have enough in my checking account to take care of these mortgage payments in case something happens for a couple months.

What can I do? My dad could co-sign with me, but he wont because he doesn't want his assets in danger. Could I create an LLC that my father could cosign to take care of my DTI problems, and still make him save from reprise?

Any help here would be much appreciated. Thank you again to the biggerpockets community.

I think I should also touch on my risk aversion: I don't have much. I recognize that I am young, and that is the BEST time to take slightly higher risk investments. Of course, I am not interested in something that is risky AND requries a high degree of technical knowledge because I just dont have it.

I've been playing poker for 4 years now, and I have no symptoms of degeneracy. In fact, it has taught me much in the ways of risk management, and understanding the risk:reward ratio.

I have been dabbling with the idea of real estate investing for a while now. I am intrigued because of the amazing opportunity to get in now while we can buy properties at historically very low prices. Real Estate Investors will be the first to tell you, it seems, that the business is real work, and there are many hurdles for you to start, especially if you are younger.
I have an advantage. When I was 19 I was struck by a motor vehicle, and my case settled this summer -- I am 22 years old with ~90K cash in my checking account. I have a good job for my age at a bar where I can make $300 a week while going to school full time. What I would like to do is spend this semester reading up on REI and shop for deals, and hopefully take a small course load next semester to set up my property/properties.
I would like to buy CHEAP properties that are close by so I can be a very active owner, and also check up on my tenants more often. I am worried about being steamrolled or taken advantage of by contractors, lawyers, my tenants, etc, but I think that arming myself with knowledge would definitely alleviate that.
I have SOME experience with buisness, and I've lived in some rough places before, so I don't think I am going to be a sitting duck. Here is where I need advice: what is the first step? Do I go nextdoor to the single family house that has been for sale for at least a year without any tenants, do I pay for it in cash upfrount, and outright? Do a pay a large portion and make my mortgage smaller?
My credit is basically non-exsistant. I've rented before, and I pay my bills almost always on time. I realize this was very stupid of me. I plan on getting a credit card to use for gas and paying utility bills etc, and two more to keep in a drawer in my house. What else do I need to do that I havn't thought of?