All Forum Posts by: George Maka

I am looking to buy a property in Columbus, OH, but I don't have any on-the-ground experience in the area yet, so hoping to find some help here. I have a duplex that I am looking at in the Columbus, OH area in the 43223 zip code. Duplex is 2-brdm/1 bath each unit and listed at $59,000.

Anyone familiar with this area, would you be able to share your opinion of this area?

Thanks,

George

@Austin W. Now that you have your list, go to the houses and knock on their doors. Introduce yourself and let them know that you are an investor and looking to buy houses in the area and if they are interested in selling their house.

Be prepared for some people to be hostile, but just keep pushing and doing it. 

George

@Moe Williams 

If you are that worried about finding a buyer, I would go back to understanding what a deal is in your area. If you have a deal under-contract, but no one is willing to buy it, then it's not really a deal.

To answer your question though, yes, always be honest with the seller. I usually say, either myself or my partner will be buying the property, which is true.

 Thanks,

George

@Brittaney Woods Sure, the theory makes sense. You take equity out of one property and put it down towards another property. While the second property is getting paid down, the equity is getting built and when you have enough, you can take equity out of that property to buy another and keep going on and on. You need to make sure that the rent will cover both the down-payment and mortgage loan. 

My concern with your strategy is that finding owner-financed properties are not as easy as you may think. And second, if you do find one, I would not count on all of them accepting a $0 down and keeping the terms in your favor. Also, you may want to re-visit your cash-flow equation. Paying the mortgage is not the only expense that you should be accounting for. There's vacancy, repairs, insurance, and other emergencies that can eat away your entire cash flow, if not accounted for.

Thanks,

George

@Account Closed Ideally, if you can get a loan from a bank/credit union, then go with them because they will probably have the most favorable terms. However, be aware that you will most likely have to put down 20%, unless you plan to live in the property, then the down payment will not be so high.

Other than that, you can partner with people, ask your family, get another job and save, or just start selling things to come up with the money. Just remember, if you borrow money, be sure that you understand how your investment will be able to pay that loan back.

George Maka

@Martin S. I would say if it was just one or two people complaining about your post, then it may just be them. But when you have multiple people telling you the same thing about your , then just maybe it's time to step back and reflect.

George

@Martin S. First off, as everyone else has said, the 2% rule is just a rule of thumb to help quickly analyze a property. Based on your risk tolerance and your own investment philosophy, if it doesn't work for you, then create your own criteria to go by and that makes sense for you. 

Second, I wouldn't count on people to just hand over to you a list of homes that are turnkey and fit the 2-4% rule. You're on a forum full of investors, so if there's a home run deal, they'll probably keep it for themselves. There's people on here that do run their business to sell turnkey properties, but at the same time, you still need to do your homework.

Again, you're on a forum full of investors that are making deals everyday. I would suggest to change your approach and rather than ask people to send you deals that fit the rule, ask how they're finding their deals and learn the strategies. I an promise you that the real deals are not coming from the MLS. Also, those bandit signs and wholesalers that you talk down about, you may want to start there and reach out to them as they may have deals. Sure, there are those who don't know what they are doing, but once you find a competent team, things work a lot better.

Best of luck,

George

@Marshall Holmes I think the biggest thing is do you have extra money for emergencies and vacancies that will arise with your property? When the property is rented, will you cash flow? 

As far as standing out, I would suggest to go around and look at the other properties for rent and see what they offer for the price. Now you just need to offer at minimum the same or update your units a little more than the competition and/or lower the rent slightly below market.

George

@Ashley Swift For some home owners, this is a sensitive subject and some may still be in denial about their property going into foreclosure. Be prepared for the hostile rejections you will receive. 

As far as the start-up conversation, I would begin by introducing myself as an investor in the area, and you are looking to buy properties around the area. Then just ask if they are interested in selling their home. If they say yes, gather more info about the property and set-up a time to go view it. If they say no, thank them for their time, leave your name and number and let them know to call you if they are interested in the future.

George Makakaufaki 

@Genesse Moreno Like everything else in real estate, it depends. There's tax and legal protection reasons as to why people use the structure they chose. As what is best, I would suggest you talk to your CPA and lawyer, tell them your business situation and have them give you the pros/cons of each business structure.

George Maka