All Forum Posts by: Stephanie Dupuis

The above comments are all spot on, Heather.

I had a similar thing happen this week with a short sale. I offered 92% of list price (an overly fair offer) - the property needed $30K in repairs. It was a cosmetic mess with some other bonuses thrown in (don't step on the bathroom floor, ya dig?). I also agreed to pay their short sale attorney expenses. I made a nice offer.

The offer has expired and we've heard nothing. I can't tell you how many offers have gone down like this. I'm not even putting any thought into it anymore, I guess that fish wasn't hungry...next.

I found my RE atty. by googling my area and "real estate attorney". News articles and other periodicals referencing his accomplishments came up. I then learned he was the guy other RE investors in town were using. His rates are on the lower end and he encourages clients to call with questions - no charge. Easily accessible. I've found my best attys. don't charge an arm-n-leg. They happen to be quite reasonable. I have no problem paying a lot for an atty., it's just that my experience has been that the really great ones I've had (except one) have been priced very fairly.

When I interviewed him, I only asked a few questions (I had already looked up his experience and qualifications). I did ask him if he invested in RE. He actively does, and you can tell. He's quite opinionated and that's fine (great, actually) - it's saved my tail already, b/c I listen to him.

Every atty. charges a bit different. Some will charge by the 1/10th of a hour, come by the project, etc. Ask how they charge when you meet.

This is a well-stated reply by Darrin. I will settle for a 8% return (which is very low for some ppl on this forum), but...I'm in a location where costs are high, and I'll be purchasing a property in a solid neighborhood, low turnover, solid tenants.

There's more to the equation than return. Because I know my local market very well, I can take many factors into account when looking at the numbers. I'm able to ask myself, "What is my money buying me?"

I'll echo other's comments...I'm on a few "wholesaler's" lists that came from my local REI. These guys seem to have decent reputations. I'll probably never buy from them. Every property they've sent has been overpriced. I can find better deals on the MLS. I wonder if they are actually able to sell the properties they are advertising and who is buying them. One property seemed to maybe be an ok deal, but it was way over my price range - further, I'm unknowledgeable in those types of properties, so who knows what type of deal is truly was. I stay on the lists simply to have a read on what's going on in town. And, if a good property does come up, all the better.

Welcome to BP, Vincent!

Welcome to BP.

Reasons for your license: The #1 reason for a license IMO is access to deals. I'll be sitting for my license in the next month. Primarily b/c I can't find an agent who will get my into properties fast enough, and making offers fast is important. Making lots of offers is important. Having access to the MLS for information for CMAs and other info is important - I'm constantly contacting me agent asking questions that only he can access via the MLS. It takes more time to ask him the questions than it would for me to look it up if I had access to the MLS.

I'm not a rehabber/flipper - but I'd think that you could leverage your money to partner with HML and/or private lenders and that may be a better use of your funds, and increase your buying power (get you into different price bracket, etc. where competition is less). Use your money so the other lender sees you have "skin in the game". Use the OMP in addition to your money so you can buy a more expensive property if needed. Or use less of your funds in buying a less expensive property and have funds left over if needed for unexpected needs or another property purchase if one arises. Extra cash is always a plus. Keep as much of your money as possible and use OPM when possible.

Jed - You already have two mobiles? That's great. In many places (not where I live, but in many other places) you can buy many more mobiles for the money than stick built - this makes your money stretch much farther. Plus, probably less competition.

This sounds like a good plan to me. Further, there's a thing called "shiny object syndrome" - where you get distracted by too many ideas. Reading your post, it sounds like you already have a niche (mobiles). Is it working so far? Crunch your numbers - how far will $20K get you in cash flow? Then reinvest the cash flow (plus the savings from a job?) - what are you able to continue to acquire? Are you to $6k yet?

How much are the mobiles costing you? (every area in different)

Jed - You already have two mobiles? That's great. In many places (not where I live, but in many other places) you can buy many more mobiles for the money than stick built - this makes your money stretch much farther. Plus, probably less competition.

This sounds like a good plan to me. Further, there's a thing called "shiny object syndrome" - where you get distracted by too many ideas. Reading your post, it sounds like you already have a niche (mobiles). Is it working so far? Crunch your numbers - how far will $20K get you in cash flow? Then reinvest the cash flow (plus the savings from a job?) - what are you able to continue to acquire? Are you to $6k yet?

Yes, I definitely consider property taxes when running my numbers.

1. As @Joel Owens said, I look at where taxes are heading. Very important b//c this can bite you down the line.

2. I also take into account each individual property like @Mehran K. b/c the amount of rent a property brings in may offset the taxes.

3. I also look up the county records to make sure there's not a senior discount in effect or other discount creating an artificially low tax. This will mess up your numbers and may create a lien situation if ownership changed and the county didn't catch it. They will charge the current owner.

Jossie - What's your niche? Buy/hold, flip, wholesale, etc.? May help with the book recommendations. There's some notable authors here on BP.

@J Scott has a great book on Flipping/Rehabs

"What Every Real Estate Investor Needs to Know About Cash Flow ...And 36 Other Key Financial Measures" by Frank Gallinelli *This book goes through the math well and explains the "why". I loved it. And it's a reference book for me. A solid education. Will read his other books.