All Forum Posts by: Dan T.

I appreciate you chiming in as you hit the nail on the head, as far as I am concerned. I am not a real estate pro - in fact, i want to be as uninvolved as i can be. REI nailed it... I am now closing on my second property - this one in Yukon, OK.

Even through all this COVID crap, my tenants are paying (and prepaying a month in advance) and i'm getting contacted by my account rep at REI to check in and see if I need anything as all is well on their front.

As for CA, don't get me started... That's the main reason i didn't keep my old house and rent it when i jumped to my new house. This state sucks when it comes to landlord vs. tenant rights. I have personally heard it from several people i know that invest here. I am involved in a few syndications locally but again, those are hands-off and the risk is mitigated by the size of the complexes in which I invest. That said, they've even collected 90% during these times when their benchmark is 95%.

@Anthony Nguyen

Agreed, whole staff has been amazing and continue to be!

Property officially closed today; renters moved in 3/6 - we're officially in business!

@TJ P.

As of now, I'm focused on this property. My focus is my career. My choice was invest in the stock market or real estate; after a ton of research, here I am. In the long run, I hope to have a portfolio that size. Who knows, I may change from SFR to small apartments after my first few. Nothing is yet set in stone.

I am paying $100 under the appraised value, not $30K over. I would never make up that difference on a single family home in this price range. That said, i am investing with money i can afford to keep invested - I'm under no illusion that this will pay off as a short-term investment. My hope is I can get a BUNCH of these houses (15-20), pay them off as quickly as I can and use that as my retirement passing them to my kids. Should i need to liquidate short term, buying these higher-end properties should allow me to minimize realized loss. 

All is in line to close on March 6th. My 3rd party home inspection found a couple items that were addressed (all minuscule) - I sent the report over to REI and they had someone one it that day. All items are confirmed fixed and we're in process of loan funding. My closing coordinator, Malorie Moore, has been awesome keeping everyone on the same page.

REI doesn't sell the property with a tenant in place as a condition of closing like many companies do. That said, i received notice they were running background on a potential tenant a couple days ago. Today, i received the following message:

"The application got approved and they have now put down a security deposit!$1,295 Rent Year 1

$1,295 Rent Year 2
2 Year Lease Length
Expected Lease Closing Date: 3/6/2020"

The rent range was estimated $1,195-$1,295. I am happy to report that we've secured a tenant at the higher end of the rent range!

Wouldn't a situation like this be ruled out by the appraisal? If someone's paying cash and waives that contingency, i get it but I can't see an appraisal jumping a home's value 50-100%. Perhaps this is ignorance from my lack of experience in Midwest markets? In terms of my primary residence, that would be like the appraiser puting my $750K house at 1-1.5m. I can't see a mistake of that caliber being possible! 

Home inspection report came in and all found items are being addressed.

Most  importantly, the Appraisal came in. Purchase Price $179,900 - Appraised Value $180,000.

Thanks, Michael! In what parts of OKC are you talking about? I am still looking in Moore, Yukon and Norman. I will be investing there as well, this will not be my only property. Seems Moore/Norman are the only decent school districts from my research.

 I would agree, the properties ALL seem expensive and there's no arguing the company size/operational cost wrapped up in the purchase price. I looked at a bunch of "roofstock" properties and portfolios and figured i would be buying someone else's headache and that wasn't how i wanted to enter this world. My thoughts, no one is going to run through and tidy their investment property before selling it or them - i don't want someone's problem child. That's honestly why i went the route i did. It's expensive but, if i plan to hold the property for 10+ years (hell, I don't ever "plan" to sell), it will pay off in the long run and my entry to the real estate investment world would have been as easy as possible - just expensive. These are just my thoughts, where they land in reality, i do not know. Would've been cool to have a mentor in all this but I've always been one to dive in.