All Forum Posts by: Brett K.

I'm not local to your market but I wouldn't expect costs to vary too much from GA to KY.  

I always buy title insurance too.  I know what you mean.  

There's a notorious case here in Louisville.  A tract of prime real estate near the interstate, enough acreage for a small subdivision, was donated to our local zoo with the caveat it wouldn't be developed.  

The zoo eventually sold it to a developer and the title examiner missed the restriction.  

The descendants had moved away so the mistake wasn't discovered until after the development was finished and the new homes were occupied by new owners.  

When the descendants found out they sued.  

I bet to this day we Louisvillian's purchase title insurance at a rate higher than the national average.  

It sounds like you don't have anyone who is guaranteed reliable.  Or as Rumsfeld would say 'a known known.  

Maybe you can increase your rate of return by offering to carry the land for another investor?  

Yes, getting into business with family can be dicey.  It can also be a great opportunity.  

I'd highly recommend doing it while in college.  It will be one of the richest learning experiences of your life and you will be fortunate to have it while you are still young & unconstrained by spouse and family.  You'll have the rest of your long life to profit from the experience.

What's the background of your financier?  It would be a great fit if they have a good background in real estate, finance, or just good with numbers in general.    

I can't speak to the average contract rate because key info is missing.  Each deal is unique.  Perhaps let him offer terms first and then check back on BP.  

I meet investors on a weekly basis that are figuratively begging for money.  Funding deals is hard to come by.  You are fortunate to have someone that trusts you enough to offer it.  

That's my 2 cents.  

I'd love to see you posting on BP about deals you are doing.  

Cheers,

If you are going to be an investor you need to know who the local investor-friendly banks are.  

Talk to other investors, call a local dirt attorney, etc. and find out who's giving loans to the investors doing flips and rehabs.  That's the lender you want.  

Talk to that lender and they will tell you what your options are.  Perhaps they won't want you to refinance your mom's house.  Perhaps you will find an investment property first and then they will do a loan on the investment property and use your mom's house as partial collateral.  No need to replace the 1st mortgage.

Good luck to you.

Hi Ryan,

The following is conjecture, guesswork, since I don't know the details.  

Yes, you can negotiate a lower price.  Be direct "since I'm not using a buyer's agent I automatically expect ____% of the price".  

Since he's an agent he'll be familiar with the local disclosures and have access to the local board approved contract.  Ask him to use that contract and he/she should automatically provide the needed disclosures.  

It's not a bad idea to have an attorney or an agent to look over the contract.  Even though the state approved contract is intended to be consumer friendly it is still easy for a person experienced in real estate to take advantage of someone who isn't.  

Yes, your lender will order the appraisal.  

It's a good idea to have a professional inspection performed.  Make sure the terms of your contract give you an out if you find something you don't like.

There is no shame in using a buyer's agent until you become comfortable with the process.  

The number one reason investors lose money is contractor mismanagement.  Do you really want to try to manage a build from a distance? 

Amanda,

Are they month-to-month now?  I'm assuming that's a yes.  

You get paid on the terms of the existing leases.  If it says you get paid on the 1st of the month then that will still be the case after you close just notify the tenants where the checks go.  

Once you have a property under contract you have a legal interest in it.  So it's not outlandish to try to put new leases in place prior to close however it's very unusual.   

If it was important to you it should have been negotiated prior to finalizing the terms of the contract.  

Hi Joseph.  

When you find a property and advertise it save the contact information from the investors reaching out to you.  

It's really that simple.  I think building a 'buyer's list' is the most over-thought, worried over, step in wholesaling.

I'm sure you've heard this already but I'm going to repeat it anyway;   the hard part about wholesaling is finding the deal.  

If you find one I'd love to be the first to know because I'm in Louisville too. 

Good luck.  

Gary,  my guess is you should set up something separate from you S-corp.  A trust most likely.   You REALLY need to talk to your tax man or lawyer.   

Congrats on your property!

Here's a good place to start-   https://www.biggerpockets.com/buy-and-hold-calcula...

Good luck.