All Forum Posts by: Matt Crusinberry

Thank you Mindy... Always a pleasure!

@Michael Weis - This is usually what is meant when people talk about pocket listings. A deal that a realtor can keep and find investors to buy properties that never reach the market (MLS). This can be very rewarding to all parties, and competition becomes less. As long as your numbers work out for what you are trying to accomplish, I would say this is a great opportunity. Good luck!

Congrats, and welcome to the game! I agree with Teri, the real estate license will definitely help you: your ability to meet the other players, view the MLS to see first on market deals, and savings on buying/selling. Good luck and keep moving forward.

@ Joseph Blythe,

Good luck man!

@David Hald

Presumably you are somewhat familiar with the market in this area, thus your 2% ratio reference. Is the property already filled with tenants? Also, it appears that you are using the selling agent as your agent as well? I would suggest getting a separate agent if this is the case, and ideally someone with an investor's understanding. The agent may ask you to provide proof of funds or a bank letter so they know that you are serious and not wanting to waste anyone's time. I would ask the agent for references of GC's, and I would also contact other GC's to have them do walk-thru's and get pictures and bids from each (have a system to validate the GC's as well). Set up times with your realtor to show them the property to allow them the chance to view the property, and obviously the sooner the better. Use the realtor as much as possible, it's their job to help you. 

You can have the realtor take video or snap pictures to have them sent to you as well. Again, it's their job to get that sale. Once you have an agreed upon price/contract with the seller, have it inspected and match the two reports up. Getting an inspection report can help you go back to the seller in case something was missed. In any case, you can then contact your GC and have them run you a new number to see what additional costs are going to be and take it back to the seller to see if they will fix it or take money off. I would want to have a number before making an offer anyway.

You should already be able to view the seller's disclosure statement of the property. If not, have your realtor get this so you don't have to contact the seller, unless the property isn't on the market. 

I hope this helps, and good luck to you. I'm sure there are more advanced individuals out there that have a system set up for this. Hopefully one of them can help as well. Good luck!!!

@Andre S Walters 

I want to start by letting you know up front that I have not viewed the recent BP webinar that you are referencing. However, with that said I am familiar with the strategy that you're inquiring about. Although, there are several different avenues you can take to obtain a property (i.e. SFR, duplex, triplex, quadplex.... etc.) using other people's money (OPM).

Some things you may want to keep in mind is what are you giving the lender in return (e.g. higher interest rate on short term loan, a percentage of the property after you pay them back, or their money and a percentage return in a specific time frame.... etc.). This all plays into the property you buy via value adds to make the property worth more (sweat equity) or how your able to obtain the property (found a great deal, the property is being sold below market value). Finding the deal is what's important at this time.

The bank (long term lender) is only going to give you a percentage of what the property is worth, or what they call loan to value (LTV). I found this to be typically around 70%-80% of the property's current value. This means you buy a house for 100k and it's only worth the 100k, the bank or long term lender will only give you 70k-80k to re-finance. If you find a property that you buy for 50k put 20k into fixes and you bring the property up to market value of 100k, then you get all your money back and maybe a little more (deal dependent); thus allowing you to pay off the previous lender. Keep in mind the other expenses as well: closing cost, removal of bad tenants, points on loan, and the many others that are specific to that property or lender.

Learn the market, find a deal, find an investor, buy the deal, work the deal (put in renters at market rents), re-finance with long term lender, pay back investor, and then repeat. I hope this helps and answers at least some of what you were seeking to find. PM me if you have other questions, or search BP as there are many with significantly more knowledge than I have. Good luck to you...

Thanks... I'm well aware of the 5 and 8, which led me to the question.  But, thank you very much for the new insight, I was not tracking the other info you provided.  

Awesome,  and thank you. 

I was wondering if there was a CPA out there that could clarify on the new tax bill that was recently passed. Is there any exclusions that have been added to the capital gains portion for personal residence. My personal situation is this... I purchased the home in DEC of 2015, and I just put it on the market. It now has a pending sale, however it's not going to close until 10 Jan. 2018. Am I going to have to pay capital gains taxes on this property?

Thanks for your help.

Oneil, this sounds like a standard purchase for a Single Family Home (SFH). Whether you flip it, BRRR, rent-to-own/lease option with a potential buyer is another matter; however, you're probably going to want to have an idea of your end game prior to going forward (which I'm sure you have already considered). Now, the route you take to acquire this home can be unique as well and I would look into all of these options: lease option, lease purchase, seller financing, hard money loan, etc.

FYI, I believe what you're describing is a lease option. A master lease option is similar in that it's the exact same thing but on a larger scale (i.e. apartment complex, commercial buildings). I recommend you reading Brandon Turner's book The Book On Investing in Real Estate with No (and low) Money Down. This will explain a good portion of what you're talking about and then some...

It sounds like your about to take on something great and I like it! Good luck to you, and keep asking questions. These people on here are a wealth of knowledge as you may already know. Also, feel free to pm me and I will give you all my in's and out's of what I have done in the past as well. Continue to do great things and make good choices...