All Forum Posts by: David Hanson

I am looking for financial advice. -3 month goal is to purchase a SFH or a multiplex and place it with a good PM company. -6 month goal is to repeat the above 2-3X. Background on my situation New to an industry under 1 year. Credit score 840+ Carrying 2 car notes $80k cash Unable to secure a mortgage because of the above job history. How can I jump in and then pull the cash back out quickly to repeat? I heard on a podcast about delayed financing. Any more info on this? Would love to meet some local investors to chat about strategies. Text anytime

As an agent myself, when a young person approaches me with an email like this I will follow up, but I am not excited. This sounds like someone that just went to one of those free seminars on how to invest in real estate and they are excited but don't really know what they are doing. No offense of course, but as a realtor this sounds like a headache. Realtors want buyers that are serious! They want to know your property credentials, timeline, price point, features, and must haves. Unless you have cash I would strongly recommend you speak with a good lender and then ask your realtor to recommend their lender of choice to you and speak with them too. When purchasing a car you always shop around for the best deal and compare prices. All realtors have lenders in their back pocket that they recommend to all their clients. This is because they have great rates, are easy to get a hold of, and have a strong relationship with the realtor. A realtor has general knowledge on lending options for you in his area but these are lender questions and a good agent will give you some questions to ask your lender then refer you to them. When making an offer a preapproval or prequal letter is huge. At least in my market where it's a big time sellers market. You need to move fast and have all of your ducks in a row. I would avoid mentioning cap rate and investment. I would say something like, "I am looking to purchase ANOTHER rental property in the area. Even if it's your first. You can ask any questions that you think are dumb questions on here and not in your initial emails to your realtor. In business you always dress for the job you want and not the job you have. You talk like you are already in the job you want and not the job you have. So you use words like we instead of I and another instead of first. Have a realtor pull comps for certain neighborhoods that you are interested in around the price range that you want. We can definitely set you up on auto email alerts but we can't specify on light renovation or cap rates. And running cap rates on every property takes a lot of valuable time, but you should run the cap rates on every property we send you to get better at it and you will start to learn the areas better this way. So when we are out looking at 5 properties together you can start knowing in your head these figures. Practice makes perfect. Realtors love experienced investors but experienced agents try to avoid shiny new investors because they are a lot of work. But if the agent is good and has experience with rentals and investment property than they can usually coach you along and help you get your first hoping you will list it with them and buy your next with them. Hope this helps.

@Trevor S Foster

Thanks, but my rental will be sold next month. Thanks for reaching out!

@J Scott

Thank you for the spreadsheet. Is there a change that we could make that would enable us to calculate paying the mortgage on a biweekly basis to minimize interest and gain equity faster?

@Joshua Diaz

Thanks I did not see this but this is exactly what I was looking for!

@Account Closed

So I used to manage my own rental in Maryland while living in TN and it drove me crazy. I think maybe I was simply too nice. Perhaps with a better understanding of how to make clear protocols and what will be accepted behavior up front would make this easier. I constantly had tenants texting me complaining about behaviors of other tenants and them moving furniture that I supplied in common areas. Basically tattling on each other and I would have to play mommy. Drove me insane. 

Could someone tell me how the conversation should go when you self manage and they first move in to make life easy on me and keep the tenant happy? Is there paperwork that you have them sign that lays out all of the rules and standard best practices for reporting issues and what is an issue, what is an emergency, and what is deal with it yourself topics?

Ideally I would love to just setup a simple website or even a google form that they could fill out and let me know of any issues. Once I have 5+ doors maybe hire a VA that can even answer a local google voice line during business hours for emergencies and even have them call the necessary contractor for issues. Just keep me out of it unless its above a certain priority level.

Nicholas Cook WoW this is amazing and exactly what I was looking for. Thank you so much!

@Eric C. couldn't agree more. I love it here, the people, the scenery, the endless options of activities, and of course the market here as an agent is great! Sold 37 properties so far this year. Definitely a seller's market. 

Congrats on your recent purchase!

@Chris Jenkins

It's under contract to close in August. 

I purchased it in 2009. It is in College Park MD right next to UMD. I did a house hack and lived in the basement and rented out the upstairs 3 bedrooms individual leases. Paid $265k in 2009 and the basement was finished but never lived in. Had 2 bedrooms downs there but no egress. I cut out 2 large casements to make it a legal 5 bedroom and redid both bathrooms. Ripped out the old laundry downstairs and converted it into a kitchen with stackable laundry full size. Built a massive deck and shed and extended the driveway. Redid almost every room over the next 8 years except the kitchen. Under contract at $340k owe around $220k. I hope to net around $80k and I really want to talk to some people about creative financing options to quickly take that $80k and get into 3-6 doors quickly (6 months). 

When I moved away I fully rented the house and hired a lawn company and a cleaning lady, but couldn't find a property manager that was willing to keep my tenants and do per room leases. I was renting whole house for $3200 per month over  bedrooms. Never had a vacancy. Always tried to get PHD students. 

Ok you can teach Cody L. What is it that you are teaching and on average what should I be paying for these services? I was quoted first months rent then 10% depending on how many properties.