All Forum Posts by: Assaf Furman

@Jay Baxter That depends on the lender. Some lenders have seasoning requirements regardless of how you financed the purchase, some don't. Some will have a certain rate before seasoning and another after the seasoning period (for example 70% in the first 6 months from purchase, 75% after). 

Just like everything else, you should definitely shop around to see what you can get from other lenders, and don't hesitate negotiating on rates you're being quoted. Depending on your investment goals, you may want to choose a lower amount to cash out in turn for faster turn around.

@Chad Huffer Bank clerks aren't being payed very well so they take the appliances for themselves ;)

On a more serious side, foreclosed properties are prone to be broken into, and when removing appliances the banks reduce the chance for B&E and vandalism, which sometimes may be caused by the previous occupants.

@Michael Pruitt Since a piece of paper with a few clauses and signatures can be considered as legally binding, there are many risks taken by either side if they don't know what they're signing on. Simply put, if you don't know what are the legal consequences of what's written as well as what's NOT written - you're exposed to a legal action. 

Other than being sued by the person you're dealing with (buyer or seller), the consequences wholesalers may face are to be chased by the states' department of real estate for breaking laws. 

@Michael Mun The lot size matters and can be taken as $/sqft to add or subtract from the comp. Every area has its own $/sqft rate for the lot size as well as for livable size, most local agents will know that one.

@Scott Taylor I'll try to answer the first question. There are many articles and discussion on finding off-market deals, you should definitely search BP for them but here's the jist of it:

- Networking: with wholesalers who find off-market deals, agents, other investors and people who are involved in real estate. Even telling random people you run into that you're interested in buying houses will get you leads (I once got a lead in a baby shower from a woman who's brother was about to walk away from his properties).

- Direct mail: All those flyers clogging your mail box are there for a reason - direct mail campaigns work. Learn how to get a list, write a letter, find a service that will mail them for you and how to work the list and narrow it to what you're looking for. But that's not nearly as important as to know how to speak to a potential seller that calls you in order to qualify the lead and get the deal.

- Birddogging/ drive for dollars / whatever-name-for-spotting-opportunities: Often times you see a property (not necessarily in a shape of a house) that may tell you there's a chance to make money here if the owners want to sell. That may be a house that looks neglected, a piece of vacant land, even a normal looking house that just hasn't been brought to the standard of the rest of the neighborhood. That's a very hands-on strategy that requires a good knowledge of the market, means of transportation, and some audacity to knock on a stranger's door asking if they want to sell.

@Eric P. What's your investment goal? Are you leaning towards cashflow or equity?

You've outlined the differences between the two, so once you answer to yourself the questions above you'll have a better idea. In general, when you have any sort of strategy-related questions keep reminding to yourself what's your end goal. 

I know you presented a certain situation just for the sake of the example, but the rate of rent Vs. purchase price isn't linear; if all else is equal than you're not likely going to get double the rent if you buy an SFR that's double in price (or worth, to be more accurate).

@John Choi The house style depends on the area it's located at. In other words, what will retail buyers look for when searching for houses in that particular neighborhood that is of high value to them and vice versa; You don't want to remodel a house in East San Jose like you would in West San Jose - you simply won't get your return. 

There are two simple ways to know that:

1. Going to open houses and scour listings to see what houses are selling for in terms of $/sqft as a function of their specifications and style.

2. Have the advice of a top tier realtor who specializes in that area you're buying in and knows first hand what value each and every item can get you per the area. Depending on your relationship, they can also provide you with CMA (comps) and understanding lending and selling process.

@Account Closed Do you have a link to that meetup?

Is there a meet up group on the weekend of the 14th? 

@Jesse Danzig Everyone that commented here are correct about working with a realtor who's good for you, and an exclusive agreement (or the lack thereof) shouldn't impede on their ability to help you.

I'm not a realtor and I don't plan to be one, but here's how it looks like from their side: I'm working hard trying to find the right property for my buyer, going back and forth on opportunities only to put a bid that's too low to even to be considered, spending a lot of my time with them not knowing when my payday will come. Point being, if you had the right type of exclusivity with them they would keep going forward knowing that this time-intensive process would pay off. If it doesn't work well, they would be the ones to offer a termination.