All Forum Posts by: Ian R.

Steven Whetten First off, welcome to BP and thanks for your service! In my opinion, if you're low on cash but you have a steady full time job and are also a disabled veteran, I would highly recommend looking for a multi-family property that you can "house-hack" (live in one unit and rent the others out). That way, since you'll be occupying the property, you can use your 0%-down VA loan to purchase (you'll still need some cash to cover closing costs). Then maybe add value to the property by making repairs/upgrades over time while you live there and build up cash reserves. Also, keep in mind that as a 100% disabled veteran in Texas, you are exempt from paying property taxes. That's a huge benefit that should save you several thousand dollars per year. Hope this helps...good luck!

@Daphne V. For her clients that enjoy beer, my wife will sometimes give them an assortment pack from the local breweries from SA & ATX (Freetail, Busted Sandal, Ranger Creek, etc).  She also has an artist friend that she will sometimes have make custom art that can be displayed on a front door.

@Milind Shastri

No disrespect but if I had been consistently showing you properties for 4 months and you hadn't closed on something yet, I would "fire" you.  As was previously mentioned, the agent doesn't work for you.  They simply represent you in an "agency relationship".  If the relationship isn't working, either party can terminate it.  A successful agent with a busy schedule simply can't afford to work with one client for 4 months, submitting unrealistic offers with no deals (and therefore no pay).  At that point, they're actually losing money by working with you when you consider the hours invested driving to/from showings, putting offers together that they know will be rejected, and also missing out on other business because they're tied up with you.  

My advice...if you want to put in lots of low ball offers, invest in getting your own RE license.  Or perhaps, start doing your own marketing to target distressed MF properties in your area or hook up with reputable wholesalers in your area who can bring you deals.

Best of luck

@Account Closed Glad to hear that...Tim will take good care of you!

Damian Solorzano if the property in question is located in Jefferson County, you should be able to find the information you need here: http://jeffco.us/assessor/online-services/property-records-search/ . Otherwise, just do a Google search for the tax assessor's website for the county where the property is located. Best of luck

Juan De La Garza Tim Macy is an outstanding local agent that is very experienced in working with investors. He works with local investors as well as those investing here from out of state and can help whether your strategy is fix and flip or buy and hold.

@Conor Murphy Please don't take this the wrong way but it appears to me that these are all questions that your agent should be able to answer relatively easily.  Real estate is local so your agent should be your primary counselor and advocate for educating you on how things work in your local market in LA, especially in regards to local tenant laws.  I find it very concerning that it appears that your agent is apparently either unwilling or incapable of performing his fiduciary duties to you.  If I were you, I'd get another agent.

And to answer your initial question, yes, you can cancel your contract within your option period and receive your EMD back. But again, these are basics that your agent should already be talking to you about.

Best of luck

@Naveen Kumar as previously mentioned, be very careful with condos.  Find out what the allowed percentage of non-owner occupied units for the building is.  Investors have gotten burned by forgetting that detail and then after closing on the unit, finding out that the limit of non-owner occupied units has been exceeded and now they can't rent theirs out.

Also, be wary of "special assessments".  I know someone that owns a condo with a monthly association fee of $150.  But last year, they got hit with an assessment for an additional assessment of $80 per month through the end of 2018.  Ouch!

@Russell Brazil brilliant strategy to use the escalation clause to help a FHA or VA offer beat out a conventional or cash bid! But I'm curious, have you ever had an issue with the appraisals coming in too low as compared to the negotiated sales price (due to the escalation)?

@Joe Splitrock makes excellent points.  If your units are not in your local area and you're not using a PM, how certain are you that your units are being well taken care of?  How often are you able to personally inspect them (or at least have someone with boots on ground inspect them)?  

Another thing to consider, what happens when you get with a major CapEx bill such as a new HVAC unit or leaking roof? That's pretty much inevitable, especially if you have long term tenants and haven't turned over the units in years. When those bills come in, you'll really wish you'd been collecting full market rents. Roofers and HVAC companies aren't going to cut you any breaks because you gave your tenants one.

@Matthew A. also makes a great point.  If you have good units, in a good area where people want to live, who's to say you would have any problems finding good tenants that would happily pay the going rate.  It might be worthwhile to speak to a local PM that can tell you the current rents and vacancy rates where your units are located.  Then compare those costs with the cost of your current lost income ($5K/yr).

Best of luck to you