All Forum Posts by: Jon Kelly

@Cameron Johnson if you're looking for a residential loan you may need a co-signer if the lenders don't accept your internships. You can also ask about a commercial loan, which focused more on the investment property and less on the property owner. 

Call as many local or regional banks as you can find. They each have slightly different guidelines. 

@Aaron Gieg I would suggest start by reading a book to obtain a base level of real estate knowledge. Brandon Turner's "How to Invest in Real Estate" is a good intro book. With a base level of knowledge the podcasts will begin to have more value to you. You'll be able to recognize concepts that others have applied. It certainly can't hurt to listen to all of the podcasts, but they aren't designed to be listened to them in order... Pick and choose the topics that interest you most. There are roughly 999,999 different ways to make money in real estate. Pick 1 or 2 and become an expert. 

@Jacob Stokes with all else being equal, you are correct, cash, waiving inspections and shorter closing time is better. HOWEVER, every seller is motivated differently. This seller may be content with waiting for the highest offer (cash or finance). 

It's also important to listen to your agent, but that doesn't mean you need to follow their advice. I would suggest telling your agent to submit the offer how you want it. The worst they can do is say no and then you reconsider your 2nd offer. 

On my very first property my agent said there is NO WAY the seller will accept my offer price and a 1-year home warranty. Turns out the seller accepted the offer. That was the last time I used that agent. 

@Ravi Ramphal Sorry, you missed the boat! All the deals are gone and no new investors can make money in real estate... How silly does that sound? 

Of course there is opportunity out there. Learn, network and take action. Good luck! 

@Rey Gonzalez You talked to ONE guy and he told you not to invest, so you won't? Seems silly. This one guy is probably correct that it is a seller's market. However, there are deals out there in every market. I would speak with many other active investors / agents in your area and get their thoughts. Make sure you have clear goals on what you are looking for before you speak with them (e.g. SFH, under $150k, will rent for $1,200+, within 15 mile radius of X, etc...)

@Zander Kempf As @James Mcsweeney said, it's best to go with an insurance broker that has access to numerous insurance markets. It shouldn't matter if you have the same or different insurance companies for the landlord or umbrella policies. You can ask for an umbrella policy that will "drop down" and provide coverage if the underlying landlord policy denies coverage. Just be sure to go with financially stable insurance companies that have a good reputation for customer service and paying claims.  

@Tommy Dahlborg  A lot of good suggestions already. $25-30k is plenty to get started. If you plan on buying and renting out (i.e. not house hacking), the standard down payment is 25%, so you can safely purchase a $100k property without needing additional funds. I would start looking in your own backyard. Connect with an investor friendly agent in the area and look at properties within a 30 min radius of you. 

@Ricky Cassidy your goals should drive these decisions. Forget truck vs. rental property. What are your goals? How much money and what amount of time do you need to accomplish those goals? If you have excess funds after allocating necessary funds towards your goals, then use that as your "play money" 

@Justin Pumpr if repairs were $7-12k higher than you expected why don't you try to negotiate the price down? I would offer $12k off the price, with the expectation they may drop the price by $5k. Worst case, they say no and you do the deal anyway.

@Justin Pumpr What makes you second guess the deal after being under contract? It seems like you made up your mind when you agreed to purchase the property. 

Is there anything in the inspection that gives you leverage to negotiate the price down? 

If $200/mo is your target cash flow, I wouldn't have done the deal at the current price. There should be a reason you set the $200/mo target. HOWEVER, you may be able to justify giving up $50/mo for the experience, connections and confidence moving forward this property provides.