All Forum Posts by: Daniel Kramer

@Thomas Yourkiewicz Podcast #140 if you are interested in student housing.

@Thomas Yourkiewicz I am born & raised in Toledo but a newbie to real estate.

You will find investors around every corner. Washington local schools are popular where there is decent value for the price. South Toledo Beverly school area 43614 has been popular. Many continue to venture into the D neighborhoods of 43608, 43609, and 43605 where you can find a duplex for 20k.

You mentioned campus - you will get mixed reviews from different people I am sure on student housing in general, but I don't believe it's as popular with the out-of-town investors. Lots people have had bad experiences from student housing and vowed never again. Along with the hesitation of students trashing the place, the areas surrounding UT are tricky to navigate. I personally think that campus can be conquered if approached correctly with a different mindset and set of processes and procedures tailored to that segment, it's just a different animal. There is a good podcast on student housing but I forgot the number!

@J Scott

I've been listening to podcasts non-stop and it recently occurred to me that THE J Scott, author of Estimating Rehab Costs, replied to my question. Thanks for taking the time to answer this as well as everything you do for the BP community. Looking back on this, it's a funny question, and you, having written a book on the subject, knew that but thoughtfully answered without mocking it. Thanks again.

Dan

@James Wise

That makes sense. I understand as an engineer in a highly regulated industry. I understand the seriousness of managing someone's investment, but it still seems like devoting 2 years to selling and obtaining a brokerage license is a bit of a different skill set than managing a property. My thought process was, hey, I'm trying to save money to start getting into rentals which is a little slow to start. Why not, in the interim to generate some income, manage other people's properties since the demand is there. I wouldn't get the investment advantage but I could produce some cash flow. I'm an engineer, I manage projects, timelines, lots of other people's (company) money. I utilize systems, software, and processes to work efficiently. I'm a professional. I'd employ the same values I prioritize in my own investments. My random thought of the day, thanks for crushing my dreams, haha!

@James Wise Wow thanks. Scratch that plan, keep my job, got it. How, in all my research about being a good property manager did I miss that little detail?

Right, wrong or indifferent... that seems crazy to me, that I can manage my own properties, and maybe even be darn good at it, but I can't manage anyone else's without devoting years to obtaining a brokerage license. I'm sure there is good reason, but being an agent/broker seem somewhat unrelated to managing properties.

Dan

I'm just starting out as an investor and also work full-time, so I plan to manage my own properties at least at first. Therefore, property management has been one of the aspects I've been researching extensively. I've noticed a common theme that good quality property management is hard to come by. 

I'll preface this by saying I love my W-2 income which allows me to get loans, but I've had the passing thought, "If I'm ever out of a job, I'm starting my own property management company." The glory is in the investing but the demand appears to be in the management. Is it really that hard? Why can't anyone seem to do it well? 

@Michael Noto

Exactly, and I did call auction.com. They were very helpful but also said as an occupied foreclosure, there is no guarantee of access for an appraisal so cash really is King in this case.

I could pool up some liquidity from 401k, heloc if necessary, but I think more preferred would be a private loan from family. I'm basically considering the bank a non-option if they can't get access for an appraisal.

Dan

@Daniel Kidd

Thanks Daniel. The property is occupied, so I assume the water would be on for appraiser, but not sure we could get in. We are not allowed in prior to the auction.

I will definitely give them a call, glad to hear they are helpful.

Dan

@John Vietmeyer

Thanks for the advice. I can easily handle the credit hold and initial deposit, just not enough for the whole purchase. Pooling my remaining cash, 401k, heloc would certainly be enough collateral/proof of funds but obviously I'd rather get my loan from the bank. What exactly do they ask for as "proof of funds?"

Dan

There is a duplex up for auction on auction.com, literally around the corner from my primary residence. I'm still pretty new and have never experienced an auction but I don't want to miss the opportunity.

It's cash-only, online auction which ends in a few days. I'm trying to do all my research, but also thought I'd ask around here.

How literal is "cash only?" I asked my local bank that does in-house portfolio loans of they could put something together that satisfies the transaction and they said, "it's fine as long as there is a purchase agreement, water is on, and we can get an appraiser in there. Money is wired by the bank at closing." Is this true? The idea of buying an auction and then not being able to follow through is intimidating.

Thanks!