All Forum Posts by: Jon Kelly

@Chris Thomas Hard to say because we have no idea what your warranty covers and the exact condition of your property. 

Most investors don't purchase them. If you have less than 3 investment properties and it gives you peace of mind to have a home warranty then keep it. Once you start scaling your business the home warranty doesn't make sense. A $6,000 furnace every 30 years is the cost of doing business. 

Interesting article! There are still great deals out there. Underwriting assumptions are incredibly important. Make sure to build in a healthy level of conservatism

@Mercedes Anthony some good advice already on this thread. Any good agent or "investor friendly agent" I've worked with has 3 things in common: 

1. Understands my criteria (market, target price, target rehab budget, target ARV, target rent, timeline to purchase, etc.)

2. Knows the market very well. One of the biggest turn offs and a way to lose credibility is providing unrealistic numbers. For example, don't say a single family 3 bed / 2 bath in Tampa has an ARV of $500k, when in reality it's worth $350k.

3. Responds quickly. This goes for any service oriented job. Every client wants to be treated as if they are your top priority. Obviously, this isn't always the case, but try to be as responsive as possible. Even if you don't know the answer to something immediately, then respond that you are looking into it and will get back shortly. 

@Chris C. what are your goals? To make the highest return possible or to be completely passive? 

If you want something completely passive with a decent ROI, then go for the syndication.

If you want a stronger ROI and the ability to build your track record as a real estate investor AND you are willing to put in the time then go with single family home.

I'm at the point where I'm considering both. I have a portfolio of 58 doors and 13 storage units. I want to continue building my own portfolio. But, I also want to connect with larger syndicators and be a LP in larger (50+ unit) deals. 

@Marjo Naci start connecting with real estate professionals (investors, agents, property managers, etc.) Start googling "top US markets to invest in." You'll need some baseline of knowledge so you can start asking the right questions. 

One other piece of advice - the U.S. market isn't easy, especially in the current environment. I'd be curious to know how much time and effort you put into investing in your own backyard first. You'll need the right mindset to begin investing, especially overseas. 

@Travis Beatty there's a difference between "not disturbing tenants" and "no access to the property." 

You should reach out to the listing agent or owner and schedule showings. They will coordinate with the tenants to let you in. If the listing agent / owner pushes back and says, "sorry the tenants aren't cooperating with showings," then that's a red flag. Doesn't mean you should walk away. Just lower your offer and make it contingent on an inspection or at least a walkthrough. 

I like these types of listings because it potentially 1) scares your average investor away, and 2) could mean the seller doesn't have a great relationship with the current tenant(s) and is willing to unload the property at a discount

@Bernard Joseph S. I disagree with the other post. If you're going to stay small and purchase 2-3 properties and wait 30-40 years to pay them off then avoid ARMs or interest only options. 

The reality for more experienced investors is they will sell or refinance their property well before 30-40 years to capture the built up equity from mortgage paydown or appreciation. In this case, ARMs and interest only loans can be your friend. They will keep your monthly payments low in the interest only option or while they are fixed. Most ARMs are fixed for a length of time and then become adjustable. For example, most ARMs are 5/6, 7/6, 10/6, etc. 5/6 means they are fixed for 5 years and then adjustable every 6 months afterwards.

It's all over! We'll never be able to buy real estate again!!! 

Doesn't mean much. There are still great buying opportunities today. There will be in 6 months. And, you can still find great buying opportunities in 2 years. 

@Slaiman Atayee I agree with the other post. We are human beings. Tell your existing tenant to speak to the previous tenant and tell them to stop coming. BUT, the previous tenant wants her mail. Previous tenant should have submitted a forwarding mail address with the USPS. 

If it continues involve the police or put a "no trespassing" sign out front with her picture on it. 

@Mary Ciccarelli Can easily be $50k+. Everything you mentioned is everything you can see. What about other big ticket items: electrical, plumbing, roof, etc.? 

I would take an experienced agent or contractor to walk the property with. They can at least provide a ball park estimate.