All Forum Posts by: Eric Schrader

GOOD MORNING GROUP

I am interested in some summer vacation rentals.  Some of these properties already have booked reservations for this coming season.  What do i need to ask for regarding deposits, payments, reservations, etc?

thanks 

Syed, Becoming a member of BP is a great first step. Consider this a marathon and not a sprint. I am a newbie with no deal experience and have learned a ton on the site. I also have interacted with folks from Laurel who are investing up here in Harford county. I am getting closer and have been slowly winning over my support group. My first deal is now within reach. Good luck.

Hey folks, 

So I have approached some family members and have a few that would like to start investing in real estate.  I would be the muscle and they are the $.  Does anybody have an example of a promissory note I could use as a template.  I understand the jist of what should be in that document but I don't want to miss something important.  If they are funding the rehab portion, what other folks need to look over the document (title company or attorney)? Since this is for rehab only, with no position on the asset, is it just as simple as a payment contract between 2 parties?

Thanks  

I have engaged a sellers broker about a deal to purchase 10 single family townhouses (to get the proforma data).  Because of the # of houses, this would fall under the commercial area.  Do I / Should I gather any additional information through a buyers broker so no details go overlooked?

Thanks

@Michael Seeker, @Joe Villeneuve

Thank you both.  

My house is in a rural area.  There are no "planned" neighborhoods, etc, so comps are (in theory) harder to come by.  The area I am planning on investing in is more "city/burb" type i.e, planned developments with similar homes from 2/1 townhouses to McMansions with 6000+ sq feet so the comps should be easier to come up with.  

So I have been thinking about getting into real estate for a while. I have been listening to the pod casts, watching the webinars, doing some analysis, trying to convince my wife, and investigating my local market for flips and buy&hold. One of the reoccurring threads on BP is to be conservative with the rehab cost and the ARV. Those 2 things, when wrong, tend to get you into trouble. Which brings me to my point.

For the ARV you get local comps and local realtors feed back, etc. I recently tried to refi my own home and got an appraisal. Not high enough to eliminate PMI (80% LTV) so we didn't refinance. The appraisal did indicate that we had about 40k worth of equity, so I thought "Why not a HELOC?" Use that to start investing. Got a lender, sent the 1st appraisal to them and, of course, they want their own. They do a drive by. Estimate is 40k less than the first, appraisal documents are full of errors. 2nd appraiser shows up, does his thing and the on site appraisal is less than the drive by! I have not received this appraiser's documentation yet.

How do you contingency plan for over a 10% difference in appraised value? 

Hi Group!!

So I found a potential opportunity on loop net for 10 single family town houses.  I received "Offering Memorandum" from the agent.  Just started looking it over.  At preliminary glance, there is nothing in there about what units are currently rented or anything about the leases.  They mention that all of the units are "currently remodeled" so I would need to look into that during some more due diligence. 

The units are owned free and clear, so seller financing could be an option.  

Any glaring items I should be looking for?  Any help from the collective is always appreciated. 

regards

@Andrew Schema,   Thanks for the reply.  Yes they are 2 bed, 2 bath townhouses/rowhouses.  All under separate roofs.

In the process of obtaining the financial documents, leases etc.  Will be conducting some additional due diligence over the next few weeks. 

What is the best way to evaluate a multi-house deal?  This is a group of 10,  2/1 THS.  To start, would it be best to evaluate one for its cash flow then average that out?  What steps does the group usually take?

thanks

So I have listened to the 22 1/2 steps podcast (again) and am working though some action steps. I admit, I have been stuck in the analysis / education loop. So I did some driving for dollars around where I work. Found a house with the stickers all over the windows, looked it up on the county site and found that it is owned by Wells Fargo and not currently listed on the MLS.

What are some of my options for progressing with this house?  i have had some contact with a short sale agent in the past.

thanks for you help.