All Forum Posts by: Jonathan Greene

That's your problem right there. Just posting on your own on Zillow and CL will get you all unqualified renters. Why would you set appointments with renters before knowing whether they can afford the place or whether they have past delinquencies? You need to set up a full process. In my market in NJ, there is no reason for an owner not to use an agent because the renter pays the fees. If you have an available unit in the LA area and only have two showings on a SAT, there are a lot of kinks to work out. The more info you get from tenants before you show it and the more you make clear the fees, the less internet options you may end up with, but better actual potential renters.

The partners don't want any interest on their money? I see that for family and things like that, but I would always structure a partnership as a win-win for both parties. If you tie up their 50k for x amount of time shouldn't they get more than the 50k back plus a little interest? Or are they taking that as interest in the home and if so, they should expect the same long-term gains and/or part of the profit from rent.

In re: to your plan. You are going to house hack? If not, the 5% down won't work. The rest of the numbers are irrelevant because there is no property. It assumes what you can rent it for and I assume, what you would pay, but it's not based on real properties in the area and I don't know your market. There are A LOT of things missing here. Single and multi-family homes have completely different calculated structures and things to account for. If you add more details, I am happy to try to give you better feedback.

You might want to have a look at this thread. It's very similar and full of mistake posts - https://www.biggerpockets.com/forums/48/topics/786263-what-was-your-worst-rei-blunder-of-2019

When did she start leasing the vehicle? Many times it is not the loan officer's fault, but the client as you can not take out ANY loans while your home purchase is in process. If she leased the car after the initial loan docs, it is on you guys. If the lease was already pending, they should still be able to turn it back to you as it should have been disclosed. Most times the car has to be turned in if the lease was taken after the loan paperwork was generated.

You definitely need an agent on the ground in Cleveland who not only can run comps, but can explain the neighborhoods if you don't plan on going and doing the market research yourself. You have to be able to trust the comps because an agent can send you whatever comps he or she wants. So if they want you to think a price is right, they can send you higher comps and so forth. So build a relationship with a Cleveland investor-friendly agent, there are some on BP, and make sure you tell them you want to see ALL of the comps within .5 miles to 1 miles with similar BR, BA, house structure. Do not trust comp research on sites that have MLS streams because they are not always accurate on solds. Many of the sites hold active data well for listed properties, but once sold they need to be verified by the agent (on Zillow) to become a sold comp. The only reliable data is on the MLS and via a trusted agent.

I've used Upwork successfully multiple times. Just search for real estate investor VA and several will come up with verified past jobs. If you have an investment CRM like Podio add that to the search terms. You also have to be very specific if you want calling to be done. Many are not comfortable calling, but are exceptional data inputters so be clear and always Skype with them first. You can find good VAs via Upwork for $5-$8/hour and their time spent is verified and trackable.

You aren't thinking correctly about what the largest return is. The largest return on a home owned for 30+ years by the same owner isn't always the highest sale price. To get the highest sale price, you will have to put IN a lot of money, which you just stated you don't have. So if you use HML at 12% with no experience and 2 points and it takes you 3-6 months to renovate and due to lack of experience, it doesn't get you what you want or you decide to do something crazy and rebuild, you are just causing more problems for yourself. If you've never flipped a house, you don't want to start, without the money and experience to do it, on this type of house. Instead of doing all that, you could sell to not just investors, but people looking to move for their family, but also do work. There is no shortcut to market price and you are really solving your own problem by not doing it instead of incurring HM debt to do something you have never done.

You will need reserve funds to buy anything so in addition to the 1-3k, do you have reserves for repairs and fixes once you buy something? Too many new investors are trying to rush into ownership, but if you don't have 3.5% minimum downpayment for an FHA plus 10k in the bank for all that will come up, closing costs, inspections, you really need to keep saving and then keep saving some more to make sure you don't bite off more than you can chew.

If your DIY friends are not licensed, remember you will need to get a certificate of occupancy when any renovation is done and all permits and renovations would need to be approved before reselling. Your best option to start will usually be house hacking so you get some income coming in, but you also get 2x the potential for repairs with a two-family.

@Angelo Mart and @Mike D. great points. Especially with REO, if you use listing agent as your agent, you have a much better chance of winning the bid, but it's not a great move for newer investors because they don't understand the process as much. Even though it's dual agency, we all know we are on our own with REO and foreclosure properties. The OP was about not having a buyer's agent and eliminating the commission. When we use the listing agent, they get the whole commission and yes, that's sometimes how you close an REO deal.

What is the partnership agreement on financing and profits and how much do you have to spend to get into the market? $1,000 passive income can be had, but it's dependent on what you can spend in most markets. What management of the property do you plan to do or are you going to pay for PM, which will cut into your cash flow? If you only care about monthly income, SF or MF doesn't really matter as it's all market-specific and supply and demand based as to what you can get. If you don't have any real estate experience, parking money for a specific monthly income will be hard to come by unless you are looking for turnkey with reliable background and data.