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All Forum Posts by: Joey Hamaoui

Joey Hamaoui has started 16 posts and replied 359 times.

Post: Primary Residence vs. Investment Property

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi guys,

We are getting ourselves into position to make our first purchase in 2018. I spoke with a local lender recently from Movement Mortgage and he told me that I wouldn't be able to get an investment property loan without owning a primary residence.

First of all, is this true of all lenders or just this company?

Second do you think it is better to continue renting, purchase our first investment property and build up the passive income prior to purchasing a primary residence or should we go the typical route of purchasing a primary residence first?

It seems to me that if I would purchase a primary residence first (bad debt) I would have to pay of the mortgage (about the same as rent) but I would also have additional expenses associated with a home that currently the management company pays for such as lawn care, maintenance of the property, etc. In addition if we own the property we would be more inclined to improve it thus sucking more money out of our pockets.

On the other hand if I purchase a primary residence the monthly payment each month would go towards paying off my mortgage and building equity in the home. This could be useful down the road when I could apply for a HELOC.

One last input: The purchase of a primary residence would cost little to no money because of the "First Time Home Buyer Program" incentives in Duval county that we could use.

What do you guys think?

Post: NEWBIE TO WHOLESALING LOOKING FOR MENTOR IN JACKSONVILLE FL

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

@John Thedford you are correct and I agree 100%. One cannot advertise, sell, or lease a property without a license unless he owns it or falls under one of the other various exemptions.

According to the part of the statute you referenced:

"

475.43 Presumptions.—In all criminal cases, contempt cases, and other cases filed pursuant to this chapter, if a party has sold, leased, or let real estate, the title to which was not in the party when it was offered for sale, lease, or letting, or such party has maintained an office bearing signs that real estate is for sale, lease, or rental thereat, or has advertised real estate for sale, lease, or rental, generally, or describing property, the title to which was not in such party at the time, it shall be a presumption that such party was acting or attempting to act as a real estate broker, and the burden of proof shall be upon him or her to show that he or she was not acting or attempting to act as a broker or sales associate. All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.

History.—s. 3, ch. 22861, 1945; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 27, 42, 43, ch. 79-239; ss. 2, 3, ch. 81-318; ss. 28, 30, ch. 88-20; s. 10, ch. 91-89; s. 4, ch. 91-429; s. 15, ch. 93-261; s. 376, ch. 97-103; s. 41, ch. 2003-164.

"

It seems that as long as a "wholesaler" has placed a deposit "substantial consideration" when getting the property under contract and then merely marketed the contract to other known investors he will be ok. As mentioned above I strongly recommend speaking with an attorney who will advise on the best contract to use, wording and be able to defend you should you get sued (unlikely).

@Richard Foster your method also seems to be catching on more and more. I know of a few local investors who are sending out contracts with this financing clause.

@Terrence Rivers you will want to make sure that if you do go the "double close" route that you work with a title company familiar to wholesaling since in many cases a wholesaler has little to no money in the deal and they plan to use money placed in escrow by the end buyer to finance the first close. This can be problematic and not all companies will do it since in essence the title company is using someone else's money to fund your transaction. There are various ways to circumvent this problem but the best way is to get a team that is familiar with what you're doing.

Post: NEWBIE TO WHOLESALING LOOKING FOR MENTOR IN JACKSONVILLE FL

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi @Terrence Rivers I hope you have not been discouraged from taking action.

There is a lot of debate whether or not "wholesaling" is legal with strong support for both positions. What @John Thedford wrote is accurate and I encourage you to read statute 475 and take advice from an attorney before you get started.

That being said as long as you do it properly by:

1. Not advertising the property as for sale but only the contract.

2. Only advertise your offerings to people you know.

3. Work with a title company or attorney who is familiar with wholesaling.

You should be ok.

I work here in the Jacksonville, FL market and there are plenty of wholesalers here who do a great job of providing value to agents and our buyers by providing discount properties (or contracts).

The biggest tip I could give is that you will face 100 "you can't do that"s in this business but at the end of the day fear is the only thing that can hold you back.

Good luck!

Post: First Time Hard Money Deal

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi @Michael George,

I probably wouldn't borrow more than 75% (if you can get it). Have you done flips already?

@Sean Walton I agree with you that it will be hard to get an answer without a deal on the table. Also I love that you're a "wholetailer". I don't see too many of those here in the Florida market.

Post: Multi-Family Realtor In JAX

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi @Hadar Orkibi

I haven't yet closed any multifamily deals but we've bid on several. I would be happy to help out if you're still looking.

Post: Any Good Handy Man Recommendations?

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hey @Mitchlyn D.

Did you ever find a handyman?

Post: Mentor

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi @Tryggvi Karl Larusson,

Are you still looking for someone to show you the ropes?

Post: Looking for an Investor Friendly Agent in Clay County

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi @Jonathan Ortiz,

I am an investor friendly agent with experience in buy & hold investments in the Jacksonville/Orange Park area. I have done a few deals in Clay County and would be happy to help if you still haven't found the right agent.

Post: Looking for investor stories and overviews for JAX markets

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi @Parker Caldwell

This is a very broad question so I hope that I am able to help with my two cents.

We haven't been able to close on any Multi-Family deals yet and it seems to be very hard to come by decent (min. 8%) returns on multi-family. We have seen a handful of deals this past year and bid on some but not successfully.

SFR is our bread and butter and we average about 9.8% return on our buy and hold investments. Typically properties are purchased around $60-80K with $7-12K rehab and an ARV of $100-110K. We purchase with cash but we've recently started doing some financed deals and I'm waiting to see how the returns turn out with those.

We haven't done anything in self-storage and I'd love to hear your take on it. I have noticed that some of the larger self-storage companies are coming in and buying up the larger commercial spaces and putting in climate-controlled self storage but that is typically above our paygrade.

We have been avoiding mobile homes in general but I am open to hearing your take on this as well.

Good luck!

Post: buying not-for-profit buildings

Joey HamaouiPosted
  • Real Estate Agent
  • Jacksonville, FL
  • Posts 406
  • Votes 163

Hi @Jeffrey Wardlow,

I haven't ever purchased one but I know that when it comes to a non-profit or not-for-profit buying a property the process is slowed a lot because they need to get approval for every move from their board.

What are you looking to accomplish?