All Forum Posts by: Brian Adzadi

@Matthew Miller

I hope some fellow real estate experts can chime in on this, but yeah, I believe they can. Your deposit is called an earnest money deposit, meaning it is money you are putting down to show you are serious about buying the house. You are at risk of losing the money as well because the seller had to take the house off the market for you to make the purchase happen. Every day the house was off the market, they lost a potential buyer. So as to compensate for you taking up their time, they are taking your money, only fair don't you think?

@Greg Horowitz

I think most banks and lenders give mortgages based on the appraised value of the property and not the purchase price. The purchase price is the price the seller feels that their property is worth, even though they generally use comps to get to that figure, its still a price based on heart. Very seldom will a mortgager lend money for a property that is more than its appraised price. It will be quite foolish for Wells Fargo to lend you $100K for a property that appraised for $80K. Shoot me a PM so I can give you a lender who does portfolio lending.

@Jason Underdahl

I have the same sentiments as you do right now. What we have to understand about real estate, especially in the USA is that it varies from state to state, city to city, town to town. When the recession of '08 occurred, some cities were hit hard, others flourished more. So when all these speculators are making all these predictions about the next market downturn, I don't listen to them. I listen to local news to know what industries are moving or out of my town because they will determine the success or downturn of my rental property. As long as you are not over leveraged, cash flow positive on all your properties and your tenants are respectful, you will make it through anything.

I remember what one of the bloggers on Biggerpockets had wrote. He said how he had couple of properties in C-class neighborhoods. When the recession of 08 happened, a lot of people who had high paying jobs and living in A class neighborhoods, lost their jobs. So the only place they could afford was the properties he owned. Thus, you had A-level tenants living in C-class properties. You can only guess how quickly the value of his properties went up. 

You are good where you are Jason. Don't let these speculators fool you. If another recession does hit, it would not be as bad as the one in 08, because those NINJA loans are not as prevalent, the banks require way more proof of income and higher down payments.  

@Huy Dinh

When it comes to qualifying for a mortgage loan, its a 3 legged stool. Once any one of those legs are shaky, you have a potential of falling on your butt when you sit on it. Yes, you have the down payment. Yes, you have the awesome credit score. However, I think its your work history that is having the lenders second guessing themselves.

Even though you have a W-2 student work job, its just that, a student worker job. Meaning, to the lenders, its a temporary job that is not exactly stable because once you graduate, poof, its gone. So yeah, your lender is right, you need to show them that the job you have is a stable full time job. You can work full-time 40/hr a week as a waiter and you would have qualified more easily for this loan than as a student.

If I were you, I would hold off on trying to invest right now, graduate as soon as you can, find a job within my degree field and save up as much as I possible can while I work. Once I have a W-2 tax form the next year from the company I work for then I would start reapplying for my mortgage.

I would not use my VA loan to try to do any creative financing. I would use that as my hail Mary to finance bigger deals like Multi-families. The ABE market is not going anywhere within the next 5 years. So take your time to get things right the first time. If you want to attend RE meet ups in the Lehigh Valley area, @Justin Brown sets up one in the Allentown area.

Happy investing.   

@Bryan Beyers

If it is for sure illegal for him to do that, make anonymous calls to the police for noise disturbance. Pretty sure he may be fined if it is illegal. After 1 or 2 calls and 1 or 2 tickets, he will get the message and stop.  

@Kevin Ha

Actually, East Flatbush/ Canarsie area is more middle class area and depending on the type of property you bought, you can make some serious bank. That area is next to a healthcare hub, there is Kings County Hospital, Downstate Medical Center, Kingsbrook Jewish Medical Center and Brookdale Hospital. All of these places train future doctors, and these future doctors need a place to stay. This is where your property would come in. Do not short yourself in this neighborhood by renting to lower income people because that is the only type of people you can rent to. I have lived in the Flatbush area all my life and with gentrification going on in this area, you can choosey in the types of tenants you want. So if I were you, stick to Brandon Turner's requirements to weed out the bad apples.

Before we all start giving you our 2 cents, can you please tell us how much capital you have available to investment with, what is your professional background, how much knowledge you have on RE investment and what kind of real estate investing niche you want to go into.

This sounds like any other transaction if you were dealing with a tenant who is in college and the parents are supporting them. Make sure you have both the daughter and the mother on the lease. You send the daughter the charge for the rent, if she does not how to carry out the transaction, then she should forward it to the mom and let mother pay for. Trust fund or not, as long as the mother is on the lease, they are both on the hook for the rent. If the mother seem like a reasonable and responsible person then you should not have any problems getting your rent paid on time.

I have only one rental property but it cost me $1,000 to have the living room and kitchen painted, have some parts of ceiling repaired, and part of basement wall plastered. So personally for me, that figure seems sensible, especially when it states that they painted throughout the property and the cabinets. If they really did all those jobs, then yea, you got an awesome PM. However, I would still get a break down of the materials and labor charges just for your record.

It depends on what real estate niche you are trying to go into. If you want to go into Fix n Flips or Buy n Hold rentals then yea, 4K is barely hitting the mark. However, if you are trying to go into real estate wholesaling where you are just selling contracts then 4K is enough. Wholesaling however, does have some regulatory aspects that differ by state and requires serious patience, dedication, time and energy.