All Forum Posts by: Eric Janson

The lenders that I work with in MN will not do a loan with an LLC, so you might want to check with your lender first. If you have to buy in your name, but you want to put the asset into an LLC, then you can Quit Claim deed it into the LLC. Your closer should be able to help you with this.

I see it as time versus money. Cold calling yourself will take a lot time and will fail like mostly a waste until you find a few nuggets, but it is inexpensive. Mailing out to the list will be more expensive, but will save time weeding out the ones who are not interested. 

I found SAREIA online. Looks like they meet on 1/4. Just search for them online. 

When I mailed out to absentee owner lists, I had better success mailing out to new list each time then mailing to the same list several times.  I know this isn't what is taught, but when I mailed to the same list more than once, my expenses were very close to the same, but my results were a fraction of what I got the first time around.  I would say either way, you need a lot of testing.  

If it has excellent rental history, then it should be fine as long as the numbers look good.   45 minutes is not that far from Charlotte, so I would also think you shouldn't have to worry about population trends.  There should be some spill over from Charlotte.  As for the market supporting raised rents, I would be cautious on that. Unless you are seeing higher rents on other remodeled rentals (if you can find any), then it may not work out.  Maybe you renovate one unit and see if you can pull a higher rent before doing all three.  I would just make sure all the numbers check out without renovations. 

I am confused by your post. You have it under contract with an agent and now it is on the MLS. Is it listed for sale now? I thought you had it under contract? Who is the buyer, the Real Estate Agent?

It sounds like a good plan, but not sure about the message to potential sellers.  I might hang up on you with that message.  Remember that for most people selling their home is an emotional issue.  They have many family memories in that home.  Maybe there is a widow living there now and she can't take care of the yard and she doesn't have anyone to help her.  

I would approach it as how you can help them with their problem, but you have to find out what that is first by asking questions. Once the owner knows you are there to help them and not take advantage of them, they will be far more open to selling to you or allowing you to wholesale their property. 

I would agree with the 10% rule.  If you raise the rent by $250 per month, there is a very good chance the tenant will move out and you will be turning the property.  If the tenant has been there a while, this may be costly, but you will get that money back down the road with higher rent.  

I live in MN and the city of St. Paul just voted on a very strict rent control here.  Not sure if that would be an issue where you live, but this rent control will hurt those who kept their rents lower then market.  They won't be able to raise them any higher than 3% each year no matter how low they currently are.  This would be another good reason to get the rent to market.  

However, if you do have a good tenant and you don't want to put them out, then go part way each year.  Maybe do 10% until you reach market or they move out.  I definitely wouldn't keep it the same as it is now. 

It sounds like this is a high end rental, but I would agree with Troy and Will that you have to look at the rental comparables in the area.  Quartz is in demand right now, just as much as granite. So, I think you would be fine with either of them. 

Buying a duplex with an FHA home and house hack it would be the best option for a lower down payment. You can live it for 1 year and then you can move into another duplex with an FHA loan. FHA loans have there limitation, but they can work. A conventional loan would be better.

Doing wholesaling is a difficult way to earn money to save for your down payment. Possible, but difficult. There are many ways to find properties for wholesaling, but they are not all cheap. Bandit Signs, Direct Mail, Social Media, Networking, MLS, FSBO, driving for dollars, etc.