All Forum Posts by: Chase Busick

@Andrew Garcia

Congrats on getting to this point! Learning the process by doing it, will be great & help you in the future!

Starting out, it can be daunting with all the info don’t know.

Apartments.com is a good beginner website too that can utilize for online portal & management. Can market on there, as well as for free with Facebook marketplace, zillow, & some more. With zillow & apts - they both synch to other websites too for marketing.

Learning as much as possible will be important. There are a ton of free resources out there - especially on YouTube & podcasts.

I’d definitely find more events or meetups to attend to build up a local network of investors in your area. Meetup.com, Eventbrite, Facebook events, etc. can all be ways to find some. Meeting more ppl in the space will greatly help your journey & lean on them for support.

@Orlando Scott

I agree with the others comments.

You can also look into if Ohio has a public real estate commission lease to utilize. If you are taking off bits & pieces & drafting own - I’d recommend getting it reviewed (licensed attorney is always better. Most states real estate commissions have already been drafted by attorneys & can be utilized by public still. 

Also reaching out to any of your friends or investors locally that you know is always good.

This is a very important question, especially if you are doing the leasing & screening process too. Overall, want to ensure you have as much need in there to protect yourself & assets.

@Tricia O'Brien

Thanks for replying!

Yes, so someone that owns property is always the best, but in some scenarios it won’t always appear depending on what class of property quality you are renting out.

If they are unable to bring a co-signer then, I’m gonna see why; then in other scenarios most people can bring in their family & you’d want to screen them as well. The state of Oklahoma has a free tool to pre-screen people within the court system. Following the Biggerpockets Owner’s advice will better protect you, because they are most likely closer & easier for you to get in contact with when needed or eventually pursue if the tenants do not pay like you mentioned. I’d also screen them as well.

I also like the others responses too & can collectively utilize most of them in your own screening process. The debt to income ratio is very valid & can use - because even if they meet the blanket standard of over 3x the rent but find out they’ve have debt payments equivalent of 2x then it’s a no & need a roommate or co-signer.

For credit, usually I look to see favorable scores. When reviewing credit profiles, If they have a lot in collections, that can be a sign of their history. Usually don’t take medical into fact as much, but depending on what the others are & how recent can justify your comfortability with the applicant, especially seeing the other info within application/screening.

If the prospective applicants are close or have not as favorable conditions can always counter & give them an approval with conditions. Whether the conditions include a roommate, co-signer, increased deposit, etc. 

 Tricia, this is a great question.

I definitely will stand by sticking with your standards & waiting it out until you get the right qualified prospective tenants.

Every time I have seen myself becoming more relaxed on standards or other investors getting more relaxed in theirstandards will result in not the best outcome. This isn't always the case, but you want to reduce as much risk as possible, & to do that is sticking with the standards/qualifications.

One way to work around that is to also ensure that the PM is asking them if they have anyone willing to be Guarantors / Co-Signers in order to better secure the capability of the main applicants meeting the criteria & have someone else on the hook if they don't pay you. This is typical for most first time renter's, getting familial ties to secure the lease.

The property manager should also be tracking the average days on market for rentals in your area, how many showings they have done, how many people have requested applications, getting any feedback from them (to see if there is anything holding them back, or what others are offering in amenities, location, etc.

Depending on where you are in California, it may still be a great property at the right price. If you wait too long, then that may be a sign that there is a higher supply where renters have more options to choose from. Usually the PM or a good agent should have equivalent data to provide.

One thing to ensure is that they are doing everything in their power to get the most showings & qualified people look at the property and apply. Ensuring that the PM is taking heavy interest in marketing the property is essential, especially if they are managing a lot or make their money from other avenues.

Welcome Brendan! 

It's great to hear that you learned about the method! It is definitely a great option to have when looking to scale your portfolio over time. Buying property at the right price then carrying out the BRRRR.

Attending as many free events & getting to chat with more people in person in your current market will be a great resource in Nashville itself. Leaning on more people there on your investing journey will be great. Connecting with commercial DSCR lenders too will also be a great option in order to secure funding. Attending any meetups in order to meet with local wholesalers or agents that work with wholesalers will be good in order to start analyzing deals that may come your way!

Each of those markets I'm sure have good areas to consider that will be somewhat easier to enter depending on the price range you plan on entering at!

@Aaron Mahnke, Sounds like a AirBnB arbitrage scenario. I haven't personally done one but some of my coworkers & friends have. Cover your bases with the lease in your LLC & the other company and plan to use it for that. Then If you are writing it up, just make sure to have things in there in order to protect you more and have someone review it. If you are just adding additional provisions to like a local real estate commission lease will most likely be fine as long as y'all both agree to it.

Hi @Paolo Scamardella, nothing to be sorry about as you were very detailed with your current situation and gives everyone some insight into some of the options you've already done. I had kinda been in a similar situation as you a while back.

The home equity loan would be a 2nd mortgage and secured by the home tapping into some of the equity. This would most likely be a cheaper option and you'd be able to keep the home. The biggest thing is if you'd be able to remove your ex from the loan.

The cash out refinance is another option, and seems like you have a good idea on it.

Depending on where you live, will determine how big of a crash there may be (but timing is hard to tell on when it will/can happen). Some markets won't be as bad as others, but there is still a huge housing demand and little supply which makes it a little less predictable. Inflation is rising, rates are increasing and bumping some buyers out of the market, & forcing some owners to reconsider their living situations, especially if their income/job hasn't been keeping up with the costs. It is something to consider with potential risks, depending on your location.

One option you can consider is if your loan is assumable, you can most likely assume the loan and remove her from it. This is if the divorce is finalized, and (only) both parties are on the note. You can possibly speak with the lenders you spoke with before to double check if your existing loan is open to it. You could potentially do that then the home equity loan in order to pay her off.

If y'all sell, depending on how long you lived there can avoid paying capital gains taxes if you lived there 2 of the last five years. I think speaking with the lenders again to see. This can depend on what you mainly want to do.

@Leo R., I believe both are. Especially since the fed has increased rates, we are seeing more stay on market a little longer as the raising rates knocked out some potential buyers or changed some of their criteria. Both are changing.

I like how you did your comparison, and agree that there are more slowly coming more available too. In my market, within the last month or two we were averaging about 2200ish active listings on market and now just under 4500 across the entire MLSOK. 

Some homes that are staying on market longer are either priced wrong, and or has something wrong with its condition or circumstance for price it was listed at. There are a lot of new listings in general now here, but the supply is still low compared to pre pandemic numbers. Some of the new listings may be because of life changing events.

@Mario Am, Yeah most of the time once it is listed on the MLS you will get a lot of qualified buyers from other agents that are looking for places to buy. Also Zillow, Realtor.com, Redfin, Trulia, facebook, etc. will bring in a lot of eyes on the listings as well.

Listing your own properties that you flip may help you save more of the money from your deals, and potentially help you if you find buyers that you want to represent or refer out to another licensee for a referral fee. If you do decide to get your license, I'd definitely just talk to multiple brokers to figure out which would be the best fit for you, as well as to figure out their fees, cap if there is one, training, team, etc. that way you can keep most of your money without paying a lot back.

You can also always build a buyer's list if you haven't already for most of the people looking for off market deals. I'm assuming you're looking for more homebuyer clientele who are willing to pay more retail pricing. If you get into a brokerage, most of the time other agents will have buyers looking for places you can push out before hand to see if you can do a pocket listing, but most of the time listing it will allow you to get a lot of eyes on it, and a lot more potential offers and at the best price.

Depending on your brokerage you can possibly just pay a flat fee for the listing as well(to keep more of the money by representing yourself), depending on the brokerages transactional fees and commission cap structure.

@Sean Bramble I'd highly recommend trying to get the HOA's covenants and restrictions, talking with someone in charge of the HOA, or people within the area. If you have someone representing you, you can have them request that information, and maybe see when the last time it was changed.

I typically avoid them, but some people I know like them because of the great returns. Like you mentioned, they can change the HOA at any point in time. Considering it's Shenandoah (great park!) I'd think it should be solid, but can also check into the towns laws about STR. Therefore if it doesn't work out in a traditional way, that's a risk.

I feel like it'd be fine, but I'd definitely do more due diligence. I'm assuming it's a good small size and not a huge place for like companies/retreats, etc? STR in the vacation space are very lucrative and great for cash flow! Another thing to consider is just maintaining the property, getting maintenance out there, and your team in place to make it work out there. I'm sure you know, but just things to consider.