All Forum Posts by: Jay Dewberry

Hi Elijah. Investors look to contract a property at the lowest possible price for the most part. 80% perhaps is just a rule of thumb. I've seen anywhere from 50%-85% of the value as a goal price. But analysis will determine if it's actually a deal at any percentage. But to answer your question, a properties value is determined by the market. Houses will sell for what buyers are willing to pay. So what are buyers willing to pay? Well, we tend to use sale comps(comparables) to determine market trends and home values. So for example, if you have a 4bed, 3bath, with a two car garage built in 2000 with 2500 sqft. You would look for recent sales in your market with similar features. This will tend to give you an idea of what your similarly featured home will sale for...or in essence, the market value of your property. Agents will have insight on this if you need help. Hope that helps. Good Luck.

Has the rental market changed since you purchased it three years ago? It almost sounds like the property wasn't properly analyzed initially, or perhaps there were management issues getting tenants? Perhaps maintenance/repair issues became a problem over the years? There are multiple reasons I can think of. But as far as selling, it would depend on your investing goals, or perhaps it may be better to cut loses. Or maybe make improvements on the property to justify higher rents. Just thoughts...good luck either way.

Perhaps consulting a general contractor on costs to repair/replace your concerned potential damaged area (per sq. ft) could give you a little more insight. Just make sure you check your declaration page for details covered. Make sure it outlines what will/and wont be covered under "Water Damage". Insurance policies can be sneaky when interpreting damage. For example...under water damage, if water/rain hits your house and goes into your home...its most likely covered. But if water/rain hits the ground and goes into your home, its not (depending on your policy). So if you have a busted pipe, roof leak, or faulty pumps it may be likely to be covered. If it were me, I would get quotes for an HO-3 style policy(DP-3 for rentals) which is one of the more comprehensive style "open peril" policies when it comes to assessing possible damages to your home. Hope this helps. Good Luck.

Hi Allen. I have to agree with @Azeez K.. We will need hard figures in order to get a good grasp on if you have a deal or not. Personally speaking, I'm not sure you will have a good deal with costs of over $415k per unit on a buy and hold. The rents would have to be phenomenal for this to occur. However, I will yield to more seasoned investors to see their input. Either way...good luck. 

Hi Karla. Welcome to BP. Finding buyers is a common topic on BP and can be researched using the Search box. But to answer your question, you'll find a myriad of ways to find buyers. Many people use craigslist, FSBO signs, Bandit Signs, marketing to cash buyers who've purchased properties in the past that are near you. I would also attend local REIA meetings as well. Many times they'll have a haves-n-wants where buyers, agents, wholesalers, ect network. These meeting may also have persons that can take you on to mentor you as well. Listsource allows you to search by various parameters...using it can narrow down cash buyers as well.

As far as paperwork, I'm assuming you mean the contracts that you'll need? The B.P. Fileplace has several contracts that can come in handy. Word of caution though, it may become necessary in the future to have a investor friendly attorney to review and/or draft you a contract to make sure your process stays legit in the eyes of state laws. Just thoughts...Good Luck.

If it's a REO listing, it's very likely you may have to produce "proof of funds" letter plus earnest money. There are several places that will give you a POF letter (transactional funding) for your deal. You'll have to find an investor friendly attorney(or title company) to facilitate a double close. Hope that helps. Good Luck.

Try here. I'm considering the same for Georgia. There are benefits for having your license, however it's not cheap. You'll have pre-licensing course fees, state testing fees, licensure fees, MLS access fees, fees associated with hanging your license with a brokerage, desk fees, monthly fees, continuing education fees...and the list goes on. So is it worth it? I think it depends on your goals. But be prepared to fork over hundreds...perhaps thousands to get going in the long run. Just thoughts...Good Luck.

IMO, I would, at the very least, consult an attorney and check on state housing/landlord regulations. Make sure to get procedural advice to make sure you go by the book in case you end up in a civil case. Perhaps it's as simple an putting the tenants on notice that you'll be decommissioning their unit, but for something like evicting, I would definitely want to have a thorough paper trail that is by the book. Just thoughts...good luck.

Congrats and welcome to BP Mark. You are absolutely right when it comes to forking over tens of thousands of dollars for guru plans. Not that they don't offer valuable knowledge, it's just that much of the information you'll learn, can be found in other places (B.P., REIA meetings, webinars, youtube, mentors, library, ect) for free and/or a fraction of what you'd pay to a guru. I personally believe that B.P. is one of, if not, the best places to meet like-minded people who want the best for it's members. Good luck on your journey.

Hi Adriana. Perhaps a good place to find local like-minded individuals that you could team up with and learn from would be the Atlanta REIA and/or Georgia REIA groups. I've been to several and they have many successful and knowledgeable people that perhaps you'll be able to network with and ultimately find a mentor. There are more local REIA groups, however those are two of the ones that initially come to mind. Outside of those, BP is an excellent source to build upon your knowledge as well. Just thoughts...Good Luck.