All Forum Posts by: Brett Deas

It's all about how you present it to the client. As long as they truly understand that they are not forced to go with you for the lending because your their agent for vice versa, and have all the required disclosures, you should be good. 

From being a sponsor for sometime now, my favorite quote ever is "You can have the best asset in the world, but if an operator commits fraud you are always losing money". That quote sounds very pessimistic but its so true. The sponsors are the most important part of any deal I am invested in and I take great care in selecting the sponsors on the deals I put together. 

How long is the balloon? and what asset are they buying? If it is a business then yes I think that is good because the balloon helps offset the business costs at the start. And as far as EMD goes I would make it 1% of the purchase price.

As a whole, Seller finance has no standard across the board. Everybody uses it for different reasons that benefits their situation over traditional financing. Take a deep look at the situations of both the buyers and sellers and then structure it based off of the needs of both parties. 

I think one photo may have the brightness turned up a bit too much, but otherwise its amazing. Also great job putting in the note about the night shift workers, I see that being a common issue that no-one really thinks about until they get heat for it so good on you for noticing that before hand. Are you active in Airbnb? I find the majority of my traffic comes from Airbnb because it has higher traffic as a whole. Especially for the 30+ day stays you can attract way more than medical professionals using Airbnb. 

 I think this heavily relies on how great of an asset that you buy, and forward thinking. The timing of the stays play a huge factor because I have seen that demand is huge in the spring and summer and slows into the winter. So knowing that and choosing between a few different guests with different stays you can try and play the probabilities of the system. I also make sure my units are the nicest around in terms of pictures and amenities. My units naturally have lower vacancy because people love what I offer. 

 Furnished finders and facebook groups can be good. The only issue is that you have to be actively looking for more people while using these things, they are not a set and forget. I have also had great luck with Airbnb because many people always think to look there first before finding places like Furnished Finders. 

It is hard with associations like these, because I have many condo's but I can't be on the board for all of them. It certainly is a risk that people have to accept before they buy one. 

Well it won't happen overnight but I'm sure you understand that. I think there are really two routes to go here, 1)trying to offset your living expenses as much as possible to use that money towards paying off your loans or 2)trying to buy rentals that pay the loans for you without offsetting lifestyle expenses. Personally I would try and offset my living expenses as much as possible to pay down the loans because it is less risky, and when you move out ideally that place will cashflow thus helping you pay off more of those loans. 

As far as buying the place with you girlfriend, I would not. I don't know you two at all or really much of anything about your lives, but numbers wise if you can both buy a house then you can get double the value. And if you are both going to house hack and then buy another primary together later you can have two rentals instead of just one. The power of scale is the reason why. 

While I average 3%, I underwrite 20% because I am very conservative in my underwriting. 

 I am not worried. I always have extra exit strategies for each property so I can turn it into an LTR if necessary. I am not the only rental wherever I go, so if they try and stiff me other people are involved too.