All Forum Posts by: Chris Erwin

I agree with @Jo Amick. When we are looking at buying properties, we look at the cap rate to start. We then start to analyze comps to get an idea on value. I don't know many investors or groups that will pay more than they deem the property worth. If you are looking to sell your properties to an investor, I would determine value and stick to a price that is within that value. 

Hello @Yadira Gutierrez. I would recommend services like Angie's List or Thumbtack. These services provide reviews to assist you in getting a good GC. 

Hello @Stephen Murray. Many of the larger banks will not touch these low loan amounts. I know of a group Security National Mortgage that has been willing to work with some of our buyers on these lower loan amounts. You could also try some of the smaller local banks and credit unions. 

@Ron Sturdevant Are you looking only locally for investment properties?

Hello @Jake Anderson what type of real estate investments are you looking to get into?

Hello @Account Closed Its great you are looking to get involved in investing in real estate. There are a few steps I would take.

*Do you know the value of the properties? This can help in negotiations with a seller. (don't use Zillow in determining value, Zillow is great for raw data). Consult a local broker to get assistance in determining value and for getting advice on the area. 

*Don't assume they are not in bad condition. You want to be in the mindset that these properties will need a lot of work, so the seller should practically give them to you. An inspection is a must if you go under contract with the seller.

*Why have they been on the market so long? Are they in horrible condition? Are they in a bad area? Trulia.com is a good resource for raw data on crime in the area. 

*It sounds like these are rented. Are the current rents at the market rent rate for the area? Rentometer is a good place for raw data on the market rent for the area.

*I wouldn't offer that the current owners keep collecting rent. I would offer that they seller finance the properties. You then pay them a monthly mortgage on the properties. Collecting the rents will assist in paying that monthly mortgage. 

These are some of the things I would do based on what you have mentioned. Basically don't take someone's word, always use facts. 

Hey @Brett Thomas it is great you are looking to invest in an apartment building. Have you invested in real estate before? Here are my thoughts on the questions you posed:

1. When someone asks you to make them an offer, it isn't binding unless it's on an official LOI, correct? Correct, it is not binding just making an offer. It is binding once you have signed a purchase agreement and paid earnest money,

2. I plan on creating an entity soon. Does the entity buy this property or do I buy it in my name? I always recommend putting investments into an entity to protect your personal assets. 

3. How specific should I be in my first offer? Do I outline things like preferred length of due diligence, certain contingencies, etc? I would be very specific. Outline what you want out of the deal.

4. I saw a checklist on due diligence periods when purchasing these types of properties, can someone direct me to that link? Not sure on any checklist.

5. Any info on the financial analytics of purchasing these types of properties would be helpful too. You can try and find sold comps, but with an apartment building, it's not as easy as finding comps for single family homes. I would enlist the assistance of a broker to conduct a BPO for you, or even go a step further and order a full appraisal. You don't want to overpay for this investment.

Hello @Michael Thomas what type of real estate investments are you looking for?

Hello @Baha M.. Our group has been providing rented properties to investors that I think you will find different from other providers. We have been dealing primarily in St Louis, MO and Birmingham, AL. The price points in the markets as well as the annual taxes are much better than many areas of the country and assist it making your buying power much stronger. We don't lump together any broker or property manager or lender. We have third party property managers that do an excellent job for us. Because we offer for sale by owner, we don't even need to use a broker. Would like to discuss further with you if you are interested.

Best,
Chris

@Stephen Moskowitz Well, I can say our group has investment products for investors. We have rented single family homes that have been rehabbed recently, they are rented with property managers in place. We also offer trust deed investments that offer a 12% interest only annual return. Would enjoy discussing further if you are interested in learning more.