All Forum Posts by: Brett K.

Mack,

That doesn't sound high assuming you financed it.  

Hi Harold.  No I haven't but I like what I've read about them.  Maybe one of these days.   As I connect with more investors and see more deals it hits home how this type of investment makes sense.  I can imagine your situation and the thought of trying to coordinate a deal from overseas is daunting at best and has a high probability of being disastrous.   Tokyo..... ugh.  The epitome of "barrier to entry". 

Hunter, I'm not saying that it wouldn't be valuable however it's probably superfluous.   Let me explain.  You seem to be a smart person.  Any 'work' you are likely to land will be low level because you are young and don't have a background in real estate.  

My advice, talk to other investors, realtors, loan officers, and anyone else with an education about this industry. Soak it up. Read the articles on this site and take them to heart. I see people crushing it using the 2% rule for multi-family, doing BRRRR's, flipping, and lending private money at 12% + a point (or more) for short loans. Get connected.

I suppose I should ask.... what kind of job were you thinking of?   

Sounds like you're getting a good deal if you are willing to put the repair $$ in escrow.  I'm thinking that as long as you get a buyer's title insurance policy you'll be in good shape.  

It's cleaner to offer someone a mortgage on the property. Mortgages at 70% LTV are incredibly safe in most instances. If you put 30% down there's probably someone here on BP that is willing to do a private mortgage for a decent return on their money.

You will probably have trouble getting a loan.  Line up your financing now.  Talk to at least two local banks that do portfolio loans for investors.  They will ask you questions about your income, debts, pull your credit if your answers are satisfactory, and pre-qualify you.  

Then work your job and try to find a good BRRRR property. Repeat six months later. In five years you'll be in a position to quit and work for yourself full time if you desire.

Cap rates is the generic answer.  Sounds like you need to call a commercial appraiser that specializes in large multi-family properties.  Preferably someone with the MAI designation. 

Consider a REIT or partnering with someone on the ground in a local you fancy.

Looks like a no brainer.  

There shouldn't be any pitfall to buying a house with a reverse mortgage other than the balance could be higher than expected.  

The FHA 203k is a great option if you need money to fix up the property. There are additional expenses such as a 2nd appraisal but it's a good product.

Your real estate agent can help or you can go solo.  I'm an agent.  Agents can bring a lot of value to the table BUT skill sets and attitudes vary.  A talented agent can save you headaches and steer you clear of costly pitfalls.  You can save the fee and just find a good dirt attorney to handle the paperwork.  There's a lot more to say about this but for brevities sake I'm stopping..... except this-  you're better off if your agent just represents you.  Offer them 3%.  Once you explain you found a property without them they should be happy to get something.  If the agent represents both parties it takes the teeth out of their negotiating ability.   A good agent understands leverage and you want that working in your favor. 

I don't think you are missing anything.  Thank your lucky stars you came across a deal and pounce on it. 

I've invited a local investor/property manager, Jason Weiss, who specializes in low income housing to talk about the pros and cons of investing in cheap housing. He owns and manages a lot of property ranging from single-family to small multi-family (6 units) and he knows the Louisville Market. We will discuss rate of returns, if it's possible to BRRRR, how to screen tenants, and more. Come out, network, and learn.