All Forum Posts by: Darrin Carey

@Tanya Smith, Obviously you've gotten a lot great suggestions already. Every market is different, and every neighborhood in a market is different.

Personally, I'd never buy a rental where I couldn't hit the 1% "rule".  If I couldn't do it locally, I'd look further afield. If I'm looking away from home, I'd choose markets where the rules and laws are in the landlords favor, or at least not against them.

As you look at neighborhoods, remember, you're shifting your odds of a problem, not eliminating them. I have a higher probability of vandalism and theft in a warzone, but there's still a chance of it in a great neighborhood.

Beware of absolute numbers for pricing, as the markets around the country are very different. Where I choose to live houses are very inexpensive. i can get a great house in a great neighborhood (B+) for 80k or so, and rent it for 950+. I can do better if I do some digging.

We get solid B properties for 50k, that rent for 700. Again, I do better for me personally when I do some digging.

Warzone properties are 10-20k, unless you're loose with a checkbook and from CA or another high priced market. then you can pay double or more from a questionable TK or wholesaler, but you'll still get about 500 rent.

Go forth and profit.

Run Away. Run Away.

@Simen Gundersen First you'd be better off doing the loan as part of the purchase, rather than a quick refi. the terms are a bit better that way. 

Most lenders will limit foreign investors to a 50-60% LTV, even with the LLC. There were a couple advertising 70% a while back.

The bigger hurdle is the purchase price. Loans that small come with additional costs, even when you can find a lender that will do them. Getting a rental loan under 45k can be quite a challenge, even for a local investor.

If I ever find a solid lender that can do smaller loans at a reasonable cost, I'll be a very happy guy. Our market is filled with great cashflow deals at those smaller numbers.

Everyone has to realize these two basic premises.

• When you assign a contract, you are giving ALL your rights to the contract to the buyer. You are removing your name on the purchase agreement replacing it with your buyers. You're out of the picture on the purchase agreement.
• Your assignment agreement is ONLY with the buyer. In exchange for replacing your name on the contract, you agreed to receive a fee.

That said, you didn't collect your assignment fee when you assigned it, or have the assignment fee escrowed at the title co. (oops) The buyer agreed to pay it, likely at closing, assuming your assignment was specific.

The buyer and seller both have the right to change the purchase agreement. So, the buyer and seller could legally cancel the existing contract and create a new one. (Remember, you're no longer the buyer) If you were at the closing table, you may have been able to prevent it, but you would not be able to legally stop it.

The title co also would not be able to stop those changes, as the buyer and the seller have the right to change their agreement. A newly written agreement would take the assignment out of play from the title co perspective. The title co is a facilitator for the written agreement in the transaction, even when the buyer and seller make a last minute change. At most, they could decline to perform the closing.

Your buyer is the only one in the transaction that owes you the assignment fee. Changing or even cancelling the original purchase agreement does not remove the buyer's obligation to pay the assignment fee they agreed to.

It's up to you if you want to pursue the buyer under the terms of your assignment agreement, or take it as a painful lesson learned.

You need a second exit from the building that meets fire code, and you have to meet the local zoning requirements. There seems to be a push locally to reduce the number of properties like that. 

Personal experience says it's not worth the hassle locally. The shared outdoor space, common are utilities, landlord paid expenses and everything else makes it easier to just buy another property.

@Bryan C. Sounds like Square is the problem. I use it, but have not for large transactions. I'd beat on them to resolve it.

It may just be that he needs to do a disclosure or full app to use square for larger transactions.

@Auston Hensley We meet at TJ Chump's in Fairborn. People usually start arriving about 5:45. Hope to see you there. In the meantime, if you want to chat real estate, fee free to give me a call.

@Rob Badhorn There are two licensed, good, Property Managers locally. Janice Kemmer (aka Mom) and Bob Rothman (My PM). If you want to talk to them , PM me and I will put you in touch.

Maybe @Robyn J. will be able to chime in with hers.

There are several locally to avoid, and some that are just so-so. And some that aren't licensed.

Hi @Auston Hensley. A great place to begin would be coming to the Dayton Real Estate Networking Meetup. There you can talk with other local people who have started, and some who've done a lot.

@Chris Mattox Welcome to BP. You've found a great online community with a lot of great people. 

To meet local investors, come join us at the Dayton Real Estate Networking meetup. There are good people there. Some would certainly be interested in discussing teaming up on a specific project.

If you have any questions, please feel free to contact me.