All Forum Posts by: Jiri B.

@Scott Bloomer Where did you purchase your first rental? Was that not a good location? You are in Raleigh so i would say, this is a great place for buy and hold! And you already live here. Purchasing local makes it much cheaper for the long run - or at least it did for me. Pretty much my entire portfolio is BRRRR and all here in Raleigh.

I'm guessing you are looking elsewhere because of the prices? I think that will really determine what and where you can purchase. 

Location is king. You might get cheaper property elsewhere, but you get what you pay for..

@Randy Frazier 10 years is a long time! I personally just use the NCAR offer to purchase form. I think its like 13 pages long.. If you have an attorney, i would check with him / her to see if they have any generic forms. You can get the realtors forms without the Realtor logo that you can also use without being a Realtor. 

You can also just download some forms online or you can even write your own (although i would not recommend doing that). 

If its just a typical purchase, i would stick with the NCAR forms.. You would probably want to make sure the contract protects your interest and complies with the NC and Federal laws..

@Raheem Jenkins good plan! There is never bad time to start real estate investing.. There are just easier times and there are harder times. Right now, we are in the "harder" stage. Prices are high, interest keeps rising and there is more competition as well.

Don't get discouraged when it not all goes by the plan just stay focused on your goals and make it happen! It's a long journey but totally worth it!

I'm in Raleigh (North Raleigh) so happy to connect and share some lessens etc. 

Probably the most common issues i see with new investors is 

1. Not having enough money to start.

2. Being unrealistic with prices.

The first item #1 is tricky since everyone says you can start with no money down etc. That is true but that does not happen for everyone.

#2 is why i see most new investor give up. They wont adjust their strategies to fit the market. They are using information / strategies there are several years old and just no longer work..

So go after your goals and make it happen! You don't have to figure out everything at the beginning, just one step at the time! 

Good luck to you!

@Kiran K. For loans, small banks or local credit unions / lenders for sure. For just regular checking account, i don't think that matters. I personally use larger bank for my business ACH accounts just because of the convenient locations and online banking and services. I'm fine having different account types with different lenders / banks.

@Kiran K. The NC state law requires all security deposits to be held in trust account. You should also follow the proper accounting rules for that (deposit slips, ledgers, consolidate account every month, etc). You also have to disclose to the tenants what happens with any interest earned on the account. 

I don't think it really matters where you have that account as long as the bank is insured and located in NC.

Here is more info on security deposits: 

https://www.ncleg.net/EnactedLegislation/Statutes/...

https://www.ncrec.gov/Brochures/Print/tenant.pdf

@Chris C. I'm not an attorney but i don't think you can just assume they moved out and dump their stuff. Unless they gave you the keys and notice they will be vacating the property, you would need to do this the legal way - eviction.

I would try to contact them and get a written statement they moved out and that they removed all their stuff. Even if that might look like a garbage to you, it might still be their stuff. That way you and them will avoid eviction and you can get the place ready faster.

Otherwise, you would need to file an eviction for money owned and possession. You will then need to wait i believe 10 days for the court hearing, then another 10 days for appeal period. After that if the tenant doesn't come forward, you would get possession. But even after that, i think the tenant have another 10 days or something like that to get their stuff. 

I would not touch anything during this time. You have to do that legally.

That sounds like a really bad idea using one contract for both properties for few reason i can think of:

1. Typically contracts are designed for a single property (one legal description, terms etc) so you would probably need something very custom from your attorney (more cost)

2. If one property falls through, then what happens to the other if they are under the same contract (sounds like lots of legal things to think about)

3. 6 unit property is considered commercial, 4 unit property is considered residential so you would likely have 2 separate contracts anyway if you are using typical relators forms although as a wholesaler you will have something more suitable for your needs and assignments so that might not really matter as much in your case.

I don't see any drawbacks of having 2 contracts and using the same terms (same closing attorney, same closing date etc if that is what you want).

It might also make it easier to find buyers. You have more chance of finding buyers for each individual property then finding one that would be willing to purchase both.

@Will Kaufmann yeah i think that sounds fair! I've seen BPOs around $100-200 when prepared for a bank compared to a typical appraisal that goes for around $500. Fees are always negotiable though, at least with Realtors.

If you ever worked with a Realtor or plan on working with one, it might not be a bad idea to develop a good relationship with that person. You might then get more help with things like this.

@Will Kaufmann i was just about to say this would be a better question for an attorney but you are the attorney :)

I'm an investor and Realtor for the reference..

Not giving any legal advice, but from a stand point of a relator, it would be unethical to go behind your back and pitch the property to other buyer if they are your agent and you are interested in the property. 

However, if you don't have agency agreement with the realtor, then you don't get the same service.

You basically want someone to help you get all this info but you are not wiling to compensate them for it.. Not to sounds offensive, but everyone's time is valuable.

If you are a buyer, you typically don't pay anything to the agent, unless they charge any retainer fee. The agent would get composted by the seller. If you choose to work directly with the seller, that is your choice but then you might not be able to get help from a realtor.

Some relators might do a CMA for a flat fee or to provide you what you need, but that does not prevent them in any case to show the property to their clients..

If you want to do this on your own, that is fine, but then you need to do this on your own.

If you are starting in real estate, you might be better of working with a local relator, it might save you money and issues down the road.

@Luke Jones yeah if you already know the size, etc and you won't get any specific names, you can just go on google or yelp and find some family owned local business around your place. Call them and tell them the specs you need and they might give you a good idea over the phone.. Large corporations will not give you any price ideas without coming in and "measuring" everything..

But also keep in mind, the prices may vary depending on the exact needs. Eg. new wiring, does anything else needs to be modified..

I know it seems a huge step from the unit price you found online to get it installed but you will typically get 2 guys working the whole day so assume 2 * 100/h is $1600 in labor.. They also need to delivery the new unit and dump the old unit. Then you will need $500+ in additional materials, $100 new thermostat and they will probably get about $1000 in profit for running business so that will put you very close to 6k. You should also have permits and inspections.

I don't think you can get it much less then 6k and if you do, i would probably not expect getting a good job done.

I felt the same way about the prices you are when i started investing in real estate, but learned over the years, that is just the cost of doing business.. Every contractor needs to get paid and make profit to make living.

Hopefully others can recommend some specific names.