All Forum Posts by: Herschel Kessler

I am working with two banks at the moment. One of them told me they would do it but I need to hold off until my 2014 taxes are done (I work as an independent contractor and only have one year of returns). Otherwise they say they have no problem with it. The other bank is letting me go through with the loan now (so they say... Hopefully underwriting will not have a problem with this). 

Do most banks do blanket loans? Or they are hard to find? Do the properties need to be in an corporate name? 

As of now, our plan is to purchase with traditional mortgage. I'm being told that when I hit 10 properties, the traditional path will become harder or impossible to do. 

When one gets a blanket loan on a portfolio, what benefits does it offer? Can I then start over doing conventional loans or there are better ways to do it? 

@Azeez K. thanks for the long message. Very helpful. And thanks everyone else for their input. I figured this was the way things worked but wanted to hear from ya'll before moving forward on our next property.

Still very new to this site, but I've decided that it makes sense to become a pro member to be able to network with others on a much larger scale. Was reading through some of the posts on here about the benefits and all seem worthwhile. 

A bit about what I've done thus far (would love critique and ideas to move forward):

My brother and I purchased our first two SFH.

Property 1

Purchased with cash $30000

Commission - $3000

Tenant in place until 04/2015 @ 600/month

Will need appx $6-8k in rehab once vacant and should rent for $800-$850 based on comps

Property 2

Purchased with cash $35000

Commission - $3000

Long term tenant in place paying $800/month

Tenant willing to pay $850 if we upgrade for appx $3k.

Both of these are in what I would say are C+ neighborhoods.

We have a management company in place who has a great track record with class C properties. 

The first mistake we made is that we didnt verify rent payments from property #1 and havent been pay (bought in beginning of December). We are in the process of evicting that tenant.

Now that we own both of them with cash - we are working with a local bank to finance them as best possible so that we can move forward to our next two properties.

We are also adding appx $3k each month towards our investment business with the plan of buying 1-2 properties of similar type every 2-3 months.

Thoughts? Comments? I'm learning every step of the way:)

What would be the process of buying on the MLS if I don't have an agent? Do I need to sign a buyer/agent agreement on a house to house basis?

Hi all,

I purchased my first two properties using a real estate agent that typically buys for out of state buyers. HE charges the buyer a commission (aside from the typical 3% that an agent receives from the seller). I chose him because I needed someone with experience in buy and hold market in the rougher areas of Atlanta.

We went into this knowing I would plan to move on and purchase on my own. 

I'm trying to figure out a strategy so that I'm not locked into one specific agent, thinking this will allow me to make more connections for potential deals. Is this something not allowed by law? This also allows me to purchase FSBO or other non MLS deals without having to involve an agent.

When I was buying my own home (before getting into investing) my agent told me that legally, I need to sign exclusive or he can't do business with me. Is this true? If so, whats the work around? 

I understand the agent doesnt want me going behind his/her back but at the same time, if I find something thats off MLS, and he/she isnt involved, I shouldnt have to pay an agent fee.

Thoughts?

Herschel

@Todd Whiddon Thanks for taking your time chatting, answering questions and explaining the process. For anyone in the Atlanta area, you need to see what Todd is doing! Super knowledgeable and down to earth guy.

I'm very much at the beginning of my real estate journey and its great to have the BP community to learn from. 

I'm glad to be apart of this all!

@Brandon Turner Love it! Very helpful while on the phone (which is mostly how I read on here!

Herschel

@Rick Baggenstoss thanks for the pointer on my goals. I'm sure it will evolve with time. I felt it was important to be realistic and have a solid goal in place. Chose single family due to the Atlanta area not having much in terms of duplex, triplex etc. 

@Jon Huber thanks for the welcome. I loved growing up in NJ but loving it even more in Atlanta! 

@Brandon Turner I've been messing around with the keyword notifications and trying to tweak it so it's not information overload and that I actually get the topics I need. 

Thank you everyone for being so welcoming!

@Paul Timmins We dont have specific neighborhoods that we are targeting. Staying away from the really bad neighborhoods. Our first two units are in the Union City area. Decent neighborhoods, priced well and rents and good as well. Decatur seems to be the "hot area" now and prices tend to be higher. (which also will likely mean better appreciation over time).

Would love to hear about how people are financing their homes. We are basically putting a portion of our paychecks each month. We started with a 0% credit card (15 months to repay) and our own money. Now that we own them in full, we are looking for a bank to work with to mortgage 80% of the amount we paid plus the bit of rehabbing that needs to be done (they are both rented but do need some work).