All Forum Posts by: James Galla

Your best bet is to save money or downsize your expenses because you will want something to at least cover a down payment. Lenders normally don't do 100 LTV unless they are looking at VA or HUD RD loans. Another option for low down payment is the FHA loan, which can get you to 3.5%. Conventional loans can be like 5% down, but when it's on a rental property, they will want 15% or more down.

The down payment represents skin in the game so you don't just walk away after things go bad and they make the lender feel comfortable because if you walk away, they can recover at least whatever equity is in the property.

So, I also suggest looking into down payment assistance programs because first time home buyers may qualify for grants that cover your closing costs/down payment.

If you have useful skills that are in the accounting, legal, or construction fields, maybe you could leverage that into a partnership where someone else can handle the finances. You'd essentially pay your way in through sweat equity.

I hope that gives you a basic idea of what steps are next.

Definitely look into your local REIA (Real Estate Investors Association) and also check out your local BiggerPockets meetups.

Because it can be illegal, it's predatory (there's nothing like being the vulture that swoops in and tries to low-ball heirs on a family home a few days after your mom dies), and often times wholesalers just throw random numbers out there on anticipated returns.

Do an FHA quadruplex. Bam, you'll have 3 rental units.

 Not horrible advice. The point in consulting an attorney, for free, is to see whether there are damages to collect and whether there may be a triple damages statute out there. Additionally, we don't know what the charge was for, hence, I would give the benefit of the doubt to the OP by assuming this wasn't overcharging a couple dollars on changing a lightbulb. I'd actually say that horrible advice is avoiding free lawyer advice to see what your rights are and whether there is something to pursue.

See a lawyer, but like I said in my first post, use good judgement in doing so.

Yes - get a lawyer and consult an accountant so you can properly close things out.

Get a lawyer. Also, ask yourself whether pursuing this is worth it - for instance, does the amount that they overcharged you exceed the cost of legal expenses? Regardless, consult a lawyer - perhaps they will be able to show you whether you ought to move forward.

There really isn't a set formula on what returns you will get with a $100k property - it really depends on the local area.

I wouldn't have given him the week when he was in the hospital. I would have let the deal expire. If you extend deals, the seller doesn't have a sense of urgency, sick or not. After all, their goal is to have as many offers on the table for as long as possible so they have the best choices available. By leaving your deal on the table, you let him feel out other offers.

The only offer I'd leave open for a week or two is a low ball that I know will be followed up by a 24-hr (or less) premium period - you offer higher than your low ball. So, during the week, you'd put in that second offer and that can entice them to accept. Kind of like an infomercial, where if you call in the next 20 minutes, it's only 1 easy low payment of $19.95 instead of 3.

The first thing you should do is get a nice W-2 job so you have some earnings basis that lenders can rely upon to loan you money. If you don't have a nice W-2 job, you can get construction, accounting, and/or legal skills to work into a partnership in lieu of cash/credit. Without cash/credit or skills, you're going to have a tough time getting something going because you might not have much to add to a deal. Until you can get those things under wraps, I'd stick around BiggerPockets, listen to the podcasts, and ask a lot of questions. I'd even check out your local REIA. Also, don't fall victim to any of the real estate gurus out there.