All Forum Posts by: Jason G.

@JC Wu @Jason Gines

Problem with these turnkey operations is they get greedy or they get pressure from

their investors or board of directors to keep growing. Eventually all these turnkey operations go south because they have to take risks to keep their investors happy. Their performance is not in alignment with that of the investor buying the properties. Your investment performing well, great so are all of the others because its the hottest market we've ever had.

Most real estate brokers will sell for 4-5%. Less even w/ Redfin. This seems to be most expensive costing the seller 5% and buyer .05%. What is the incentive to the seller if it will cost the same? Seems like you would get a better price on open market through broker. 

Has anyone used Roofstock to purchase real estate? I'm looking for a few references and plus/minus of using this service. Thanks. 

Hey BP!  I'm still quite new around here so I know I'm risking outing myself as someone who "doesn't get it yet" by asking this, but I've been consuming everything I can to try to educate myself - podcasts, books, forum conversations.  (I have yet to get out to a local meet-up, but  I'll get there.)  I think of this as part of what it takes for a new investor like me to get up to speed.

One thing that keeps coming up - particularly as I read my way through some of the titles folks on the podcast identify as their favorite business books - is the idea of drastically minimizing expenses.  I guess the volume and frequency of the "you must live an exceptionally modest lifestyle" message has surprised me and I'm curious if you have tips for how to accomplish the spirit of what they're saying without drifting into self-deprivation.  Live below you means, sure, but some of this advice...I dunno.

Of course I get that living on $20,000 a year, for example, would provide a big boost to my wealth building but I've lived on that income before, as I'm sure many of us have, and I don't recall it being very pleasant.  I don't need to splash money all over the place, but what's the point of using real estate as a tool to build passive income and increase my long-term wealth if it doesn't also improve my standard of living as I go along?  Sure my retirement would be GREAT if I save 50% of my income, but...  What am I missing here, BP?

How did you find this deal and how did you negotiate it?

Roofstock - I knew it needed minor repairs and the seller was tired of holding onto it so I made him an offer that was fair on both sides.

Thank you very much @Brian Ploszay! I will definitely do that. Yes. It looks like their algorithm does not take into account crime rate, but it does take into account income level and school ratings. 

Just FYI for anybody reading this thread, I found this link describing their algorithm:

https://learn.roofstock.com/blog/roofstock-neighbo...

@Linda Dalton, @Jason Gines, @Eric P., I believe you bought properties through RoofStock, do you have any guidance and/or opinion on their star neighborhood rating system? Did you use it? What star properties did you end up buying?

Hi Everyone,

I am running in to a problem with lending. I am not getting approved for a loan due to my debt to income ratio. I purchased a 2-unit last year that has appreciated tremendously.  I house hacked, as I live in one unit. I wanted to refinance and then apply for a loan to purchase a new multi-unit. Other issue is I have another property in my name fully paid for and my father pays the taxes and HOI on it. But, it is coming up as debt for me... Any suggestion on what I can do to get a loan approved?

@Jason G. Very cool. I noticed you guys plan to buy a couple more SFRs until you hit 10 mortgages. Did you ever consider having the title of the house under both your names but only  have a mortgage under your name (or her name?)

Therefore, you can add more than 10 between both of you?

Just walked away from my first deal. I’ve been looking for several months for a two family, in a good area, with potential for value add through renovations. I found a single family with a detached cottage already rented out, in one of the best towns in this area, with motivated sellers as it is an estate sale. They took my initial low offer, but we just had the inspections, and I decided not just to walk but to RUN!

Problems included: septic tank leak, failed water flow test for the well, evidence of carpenter bee infestation in the house and termite infestation in the garage, leaking pipes, roof was bad and all the windows were bad. The detached house had mold in the crawl space and attic. There is asbestos insulation, and rotten sills on both the garage and the main house, and electrical problems (short in the bathroom, no grounds, and not enough AMPS for the house). The money for the inspection was literally the best money I ever spent. Saved me a huge headache and a lot of renovation costs that otherwise would have been unanticipated.

It does have me wondering, should I make a super low ball offer, like the land value only, and then just knock the house down and build a new one? Anyone else ever walk away from a (perceived) deal due to bad inspections or find yourself in a similar situation? What did you do?

I live in NY and have noticed it’s too expensive for me to invest here at least locally.

Have you ever purchase a property that you've never stepped foot in? Or at least only visited once or twice? I see some friendly prices out of state and was wondering if I had to be there often. Was thinking of the BRRRR....

Your thoughts?

Thanks!