All Forum Posts by: Greg Larson

Sounds like after this first property you need to find owners who would do seller financing unless you are looking to add partners. If I were in your position I would work on building up your network in this new market and I would do it through your list. Approach the people on your list more casually than standard marketing and try to get to know them and pull some wisdom nuggets from their brain bucket, try to add value to their business and cultivate a mentor/ mentee relationship and see where it goes. The street cred will go a long way when they eventually go a long way if they want to sell to you with owner financing or know someone who does.

Thanks for the tip! I'm taking notes of the owners that show up on my list multiple times and will reach out to connect and "get on their radar".

0 Votes

Hey BP, a couple of quick questions here.

I just moved to a new market and am looking to build up a portfolio of MF homes as quickly as possible. I'm now starting to use some of my sales and marketing background to target off-market multi-family deals.

First question.. Given that I'm a single individual with an average income of $75k per year, how soon after acquiring my first MFH would a bank allow me to take out another mortgage on a second MFH? Is there a limit to how many mortgages one can have at one time?

The reason I ask is, I have a list of property owners I want to target and I may come into more than just one deal.

Second question.. If you had an "extra" MF deal on the line but couldn't get bank financing for some reason, what would you do with it? Hard money? Seller Financing? Partnership with another investor? Worst case scenario, wholesale it to another investor?

Thank you in advance for your advice!

1 Vote

Quote from @Brenden Mitchum:

Hey @Greg Larson, great question!

With any asset class in any listing service (MLS, loopnet, even OMs from brokers), you never want to take reported income or expenses too seriously. You can use them for your initial underwriting, but always verify during due diligence with P&Ls and bills.

$500 annually is bs. They either missed a zero or they meant monthly...or the place is a total dump with a ton of deferred maintenance. Run your calculations with your own expense ratio and ignore theirs until you see proof.

Hope this helps a bit. Please, feel free to reach out anytime if you have other questions or just want to chat!

Thank you for the advice Brenden! It definitely seemed off.

0 Votes

Hey all, I'm looking at a duplex property that was just put on the MLS. It's stating that the annual operating expenses are only $500.

This sounds unrealistic, correct?

If so, is it common for MLS figures regarding GOI, NOI to be inflated/manipulated? Or do they have to provide proof of those figures in order to list it on the MLS?

0 Votes

Hi all,

I'm looking to house-hack my first multifamily property and I have my eye on one in particular. I'll be doing an FHA loan as I am looking to put down the minimum amount possible to get into the property. The agent I've spoken with has stated that all 3 units in this multifamily are currently rented. As you all know, with an FHA, I would have to live in one of the units.

Would I still be able to invest in this property with an FHA loan if all the units are currently rented?

Has anyone else gone through this same situation in the past?

Thank you in advance for your time and any advice you can pass on.

0 Votes

Originally posted by @Jessica Zolotorofe:

The title company doesn't have anything to do with the JV agreement unless the JV is an entity taking title but if it's just an agreement between you two, you can send it to him if you don't have an attorney and he can sign or have his attorney review, or whatever his plan is and then send you back a fully executed version for your files.

I see, I was under the impression that the closing agent/title co would need to have the JV agreement so that way the funds are distributed properly at closing.

0 Votes

Originally posted by @Jessica Zolotorofe:

Correct. So you would have your agreement with the JV partners in place so that if or when you do find a buyer you are entitled to your share. If you bring them a buyer you have no protection if they decide not to sign it and just take the buyer for themselves. Until you're sure you have a signed agreement, no sense in doing the work to find the buyer.

Thanks Jessica, that helps a ton!

I just spoke with the other wholesaler and he is filling out the JV agreement right now and sending it to me (he has the contract, i'm bringing buyer).

Once I sign the JV, should I send it back to him or send it directly to his title company/attorney?

0 Votes

You are so helpful @Lydia R., thank you for the advice :)

1 Vote

Originally posted by @Lydia R.:

@Gregory Larson Instead of a JV agreement you could have the wholesaler assign the contract to you and then assign to your end buyer. Original wholesaler includes their wholesale fee in the assignment to you and then you add yours when you wholesale to your buyer. This way you can make sure that you get paid.

Thanks @Lydia R.! Would this be what is known as a double assignment? I've heard mentions of them, but it is not something I have looked into yet

0 Votes

@John Warren thank you for your response. I was able to get the records from two of the five municipalities I visited. It took a few days, and then they sent it to my email address. It is just a list of addresses however, so now I will do my research to find the homeowners name and skiptrace their phone number.

1 Vote

All Forum Posts by: Greg Larson

Greg Larson has started 44 posts and replied 113 times.

Post: Rookie Multifamily Financing / Creative Real Estate Question

Post: Rookie Multifamily Financing / Creative Real Estate Question

Post: Annual Operating Expenses

Post: Annual Operating Expenses

Post: FHA: Purchasing multifamily that has no vacancy

Post: JV process - when do we sign the agreement?

Post: JV process - when do we sign the agreement?

Post: Sending JV info to title company

Post: Sending JV info to title company

Post: Code Violation Lists