All Forum Posts by: Corby Goade

You need to look closely at your settlement statement. Are you paying back taxes? Prepaying taxes? Are there other expenses on there that you don't understand? For an FHA loan, you should be looking at closing costs in the range of 3%, maybe a bit less and a couple thousand in origination fees. I've never heard of a bank giving a discount just for the sake of it, but they could be charging you points to buy the discount.

How much equity do you have in the duplex? To me, equity is the most powerful tool you can use to grow a portfolio.

A college degree teaches you how to learn and how to stick with and achieve a long term goal. I have a degree that I don't use, but I don't regret a thing, without that experience, I would not have learned what it takes for me, personally, to see something through and not give up. Sure, it might be expensive and seem like you aren't learning anything, but I'd venture to say that you are. Think beyond content knowledge, think of what it is doing for you as a person. Beyond that, a degree will open up doors that wouldn't have opened for you without one. At the very worst, getting a degree will not hinder you in any way. Best of luck!

Come up with specific and strict buying criteria, that is step one. Once you do that, stick to your criteria look for deals anywhere you can- MLS, contact wholesalers, drive for dollars, send postcards, etc. Finding good deals is more about knowing what you are looking for and what will help you fulfill your personal goals than knowing where to look.

Why would you let the girl off of the hook? Did you have a discussion with them about it before she moved out? Did you come up with an agreement that was mutually beneficial? These situations are exactly why you have a lease in place- it protects you, make sure you use the lease accordingly.

Do you have a mortgage with a balance that high? If so, I'd put it all towards the mortgage. In my area, appreciation is at 13% over the last few years, that's a great return, much better than you'd get most anywhere else with a secured asset. As soon as you pay off the mortgage, open a HELOC and you will have that cash available to you whenever you want it and you don't have to pay a penny in interest until you use it.

There are many unknowns here, and I am not clear if you are getting a slow response from your own realtor or not hearing back from the seller's realtor. If your own realtor is responding to you too slowly, then you need a new rep. If the seller's realtor is responding slowly, there are many possibilities, but @Russell Brazil hit on the most likely one. If you are in a hot market, you could be asking several questions about a property while the owner is sifting through 25 cash offers- why take the time to answer questions. I get it, it's rude, but they basically have the house sold and it looks like you are kicking the tires. In a hot market, you have to be aggressive and ready to take a risk- others definitely are, and it may be leaving you in the dust.

Disclaimer- I have never done a new build. With the cost of materials, it can be very expensive to build in my area. Not to say you can't make money, obviously you can, but the entry point is much higher. I also feel that it is easier to have multiple exit strategies when you buy a property that needs rehab. For instance, here, I can find a 3/2 fixer for around $150K, I could put a few bucks in to it and sell it for $225K or rent it for $1500. If I were to build a 3/2 at 1500sf, there is no way I am starting under $250k. With fixers, you generally have fewer permitting hurdles to jump, shorter time frames and it's more likely you can put more of your own sweat equity in to it. I'd love to hear from someone who disagrees and learn a thing or two!

Hi @Bryan L., I couldn't agree more. Thanks for the additional info. Best of luck out there!

This is great, good for you! There are some great PMs out there, but there are also some not so great ones. I'm curious, you say you have a "great" PM, but in the two scenarios you mention above, two quick phone calls saved you $1500. Did your property manager negotiate on your behalf at all? I believe it is part of a PMs job to ensure they are spending your money as if it were their own. What about your PM do you think is great? I am a property manager, so that is a genuine question. As an investor, the scenario you mention above would make me seriously question how good my PM really was.