All Forum Posts by: Joshua Clark

@Lawrence Harris

I appreciate this post and the responses you have received. This is a very timely post as I was just discussing this topic yesterday for my own consideration. Thanks everyone for the input!

I am originally from the Kalamazoo area and have a couple of friends who invest in student rentals there. One owns three homes and the other is up to about 13 homes now. They never have a shortage of tenants! The homes they buy are typically in the "student ghetto" area and they do the renovations themselves. They purchase the homes typically for under $30k. Hiring out renovations could potentially cost an arm and a leg in the student rental market, as you noted. The lease for these properties is always executed with the parents of the student renters, so the owners know they will have someone to collect damages from upon move out, and there are typically always damages. As far as non-student rentals I don't know anyone who currently owns any. I feel that there are pockets where you could tap some pretty steady renters working the local factories, hospitals, or commuting over to the pharmaceutical company in Mattawan. Best of luck and hope this helps.

Unfortunately, I am unable to participate on the 26th as I am working that day. Don't let that stop you guys though if it works for everyone else. I can always jump on a January meetup!

They wouldn't receive a cash payout, you are basically taking over the payments on their loan as you stated. The loan remains in their name, but title transfers to yours.

Think of people who have moved out of their primary home, secured a new home and are having trouble paying both mortgages. They need to get rid of that other mortgage payment, but not necessarily the mortgage itself. Also think of people who may be close to losing their home to foreclosure. They don't want or need another mortgage, and you can take over the payments on their loan, make it current and build their credit for them while they are renting until they can afford another home. 

BP Podcast 2 is one of the best beginning resources for understanding subject-to financing. 

I hope this helps!

@Kenneth Guin, I believe the answer to your question is yes.  If you check out episode two of the BP podcast with Karen Rittenhouse, you'll see her and her husband have built quite a lucrative business in North Carolina doing subject-to financing.  

To your other point, when purchasing subject to, you will most likely be purchasing the home for at least 50% of the appraised value of the home...you are simply purchasing it subject to the current financing.

I highly recommend that podcast if you are having trouble sorting out subject to financing.  

Hope this helps!

@Brian Pierce you have any interest in getting in on this?  

I want to do something focusing a little more locally on Goodyear and not get lost in the metro-Phoenix chatter of the larger groups.

A couple things I came across recently:

- Byrd Hotel Group plans to build what will be the largest hotel in Goodyear just beyond center field of the Goodyear Ball Park (what does this mean for further development of the farm land in this area?).

- Harkins Theatre development (Estrella Falls Regional Mall project). @Erin Estes I know we touched on this in conversation back in April.

- Goodyear is one of the fastest (if not the fastest?) growing cities in Arizona, yet it is only 12% developed.  I've only been here a few months, but I don't see a ton of multi-family options in Goodyear?

- Single Family Home permits are up 31% from this time in 2014.

Another topic I would love to explore is short-term rentals to snow-birds and/or spring training attendees (vrbo/airbnb).

I am curious to see if there are enough BP members interested in starting a regular meet up in Goodyear, AZ.  I moved here a few months ago, and am settled and ready to network.  

By the way, did you know 24/7wallst.com just named us #7 in their top 50 list of cities to live in in the United States (the only AZ city on the list).

See the article here:  http://247wallst.com/special-report/2015/11/05/ame...

I believe that first, you need to determine a plan on what type of properties you collectively desire to invest in, and how.  The last thing you want is to begin investing and everyone is not on the same page.  Sit down and find an investment strategy that everyone is on board with.  Get very specific about the type of investing (wholesale, flips, single family homes, multi-family, land, commercial, etc.) you will and will not invest in.  Then, find a great lawyer and accountant to determine the best business structure to support your investing and provide the most tax shelter for income.  I hope this helps! 

Personally, I think you could do both...kinda.  You could sign with a buyer's agent with a clause that if you find a property on your own you do not need to pay the agent.  I believe, depending on your market, you would likely find a motivated agent that would jump at this opportunity, and maybe even work hard to find you a property before you find one for yourself.

I also would say that instead of signing into an exclusive buyers agency, you may be better served to begin introducing yourself to agents and/or commercial brokers in your area and let them know what you are looking for and that you are a serious investor (assuming you haven't done this already).  Real estate agents and brokers love talking about real estate.  Pick their brains about the local market and trends they are seeing in the multifamily market.  By doing this, you will have multiple agents looking out for properties that fit your investment criteria, without having to commit to one, and you may even get advanced notice before a property gets listed.  Also, you will get multiple perspectives on your market from the people on the ground.

Another suggestion is to talk with property managers in your target market who manage the type of property you are most interested in.  These people may know of owners who are tired of being landlords and on the fence on selling.

I think the more irons in the coal the better, so why limit yourself to one agent/broker.

Best wishes...

Awesome! Thank you for the update! This version seems so much more functional and clean.