All Forum Posts by: John Montgomery

 And her brother could do a quit claim deed to divest himself of the property, and you all could settle outside of an actual transaction.

I think it really depends on the situation, the relationship and the type of people who are getting involved. If you have a rich generous relative who loans you money and then you do your best with regards to the investment project, but you still end up loosing $20k; well it's only money and the loss wasn't due to your negligence. However, if you change any of the factors and the result could end up being very tense. What if they are only middle class and the $20k was 10 percent of their savings? What if they are rich but very greedy and vindictive? What if you aren't the hardest worker or there was something that you could have done but didn't? What if any of these negative scenarios are simply perceived by the other party? Many people say they would never do it. I think it can work out. It really depends on every individual case and a careful evaluation of the people you're going to be doing the deal with. Unfortunately, I think, sometimes the people closest to you are the hardest people for you to do a real assessment. I did a flip with my aunt who funded the project and it worked out fine as far as our relationship. I basically broke even, so she was made whole and it was actually a good thing for our relationship, but it's just so easy to see how things could go wrong.

Not sure about current rates for family members. We did our deal back in 2013 and I paid her 5% APR, which I think was very generous on her part.

Sorry for not answering.

You could try to get an FHA 203k loan, which will include repair costs into the loan amount. My understanding is that you get the draws on the repair money as you complete the repairs, but the loan would be the contracted price plus whatever the cost of repairs.

Is it unethical for a buyer to do something that might encourage the sellers agent to break the rules, i.e. was my friend complicit in the bad behavior of that sellers agent who threw away the other offers? If so; what would you do if you were in that situation, and about to close the deal?

This realtor helped my sister find a SFR in Reno. She liked her and felt that she was very helpful in analyzing properties as investments. She gave her a spread sheet with estimated rents and management costs so it seems like she knows what to look for.

Her name is Erika Lamb. 

On a related note; I remodel kitchens and there have been homes where we have been watched and listened to. It was very creepy to find that out one time when I received a text from the homeowner regarding a conversation that I was having with my co-worker. I wasn't really concerned because I know what I'm doing, I do things right and don't cut corners. There were, however, some difficulties with that customer. There are always things that come up on a job that need to be figured out and discussed and someone who is not knowledgeable about construction listening in, can take things out of context or misunderstand what's happening. Everything ended up ok but there was a lot of difficulty for the project manager along the way. 

My point is; you really have to be careful in these situations. You never know how what you say is going to be interpreted by outside observers. Probably a good idea to keep ALL conversation off the property.

 Agreed. Especially on your first rental. There's enough to learn about being a landlord with the added burden of more likely having to deal with problem tenants.

An investor friend of mine told me about this, so I don't have any details beyond this: Hire a title company, and submit your offer directly to the sellers agent. Sellers agent gets double the commission. 

Obviously you would need to be confident in what you are purchasing and thorough in your due diligence. It's a technique he used and said he watched an agent throw several other offers in the trash and accept his offer.

I'm interested to hear what others think of this approach. Seems a little unethical (illegal?) on the part of the agent.

I'm would be interested in talking to you. Where is the property located? What are you looking for in a partner? I'm fairly new to real estate investing. I did a flip back in 2013 and I've had a rental for the last 18 years. I currently work full time remodeling kitchens, but I will be transitioning into real estate in the next few years.

I live in Sacramento and I'm very interested in mobile home investing and want to learn more. There is a meet-up in hosted by @Sergey Tkachev at Sal's Tacos in West Sacramento. I think it's the first Monday of every month. I went last time and learned a lot. Maybe see you there.