All Forum Posts by: Joel Cummings

Grant Fosheim What area in Everett do you invest? And are you buying off market or on the MLS?

This is a great question, but just think of all the things you will learn as the market corrects, especially if your mentor is good. And then when it turns, which shouldn't be more than a couple years, you will be in a great position not only to purchase at the bottom but also help others do so. Obviously if you have no reserves or back up plan you may want to consider that before jumping in with no parachute, but in general, as has been said here before, succeeding in real estate has more to do with successful business habits and less to do with how the market is doing. Good luck!

Absolutely worth it. If you have a full time job and are very busy I might think twice, but even then it would be worth it I think. The only down side is the time you have to commit to keep your education current and the fees for keeping your license active. Many many benefits including of course the commission money. Go for it!

Hey folks,

I believe this will be my first post on BP. If you care to do so, I'd like you all to analyze a deal I am negotiating currently, because I'm on the fence about it. This is a triplex in relatively good shape.  No immediate repairs needed and fully rented.  Rents are under market.  The numbers: 

Purchase Price: $90,000

Gross Rent: current $1225, potential $1550

Expenses (Vacancy, Management, Taxes, Insurance, Maintenance, Cap Ex, Utilities): $715.38

$72,000 mortgage @ 4.5% = $365

Current cash flow: $144.63. Potential Cash Flow: $373.75

Current COC: 9.7% Potential COC: 24.9%

The seller has agreed to pay for a one year home warranty, so I could lower my maintenance reserves for a year if I wanted to increase cash flow. I'd rather not. Seller is also paying closing costs so my total out of pocket cost is $18,000. 

In my opinion, this deal with the current rent numbers is marginal, but something about the potential rent is eating at me. I know it is a golden rule of investing to not buy based on potential, so I put it to you BP members. Would you buy this deal and why or why not?  Thanks!

I think you need to be judicious about what to spend money on when starting out, or if you'v been in the business a long time.  Although I'm sure they are out there, I've yet to come across a course that wasn't worth the money, simply because one little tip can net you thousands of dollars in one deal.  Most really successful investors I know have a wall filled with all the courses they have bought over the years, so it's not like they don't buy other people's materials.  If you read enough and talk to other people in the industry, it will become clear who is worth your time and who isn't.  

FHA

Is there anyone who has experience with the rules regarding Loan Assumptions? I was told by Bank of America that all loan assumptions have to be occupied by an owner occupant within 12 months.  Would this mean that if I sold the house before the 12 months I would not be required to live in it? I have a deal that would work if I could assume the loan and lease option it to a buyer already in hand.  Any thoughts appreciated.