All Forum Posts by: Joe Norman

The Baltimore City States Attorney is currently being prosecuted by the federal government for claiming Owner Occupancy on a house that she never intended to live in. Google "marilyn mosby mortgage fraud", read a few articles, and then decide if its worth the risk. I personally do not think it is.

You're right that Montgomery County is a very very expensive place to be buying a home, much less an investment property. The good news is that there are plenty of jurisdictions within an hour drive that have lower housing costs.

Good luck and keep posting/asking questions!

If a Realtor came up to you and said "Hey, I'm a brand new agent. I have never done a real estate transaction before and if you let me represent you in this purchase I'll credit my full commission to your closing costs" would you hire them?

I hope not, but thats exactly what you and your wife are looking to do. Stick with the experienced Realtor who is there to guide you through one of the biggest transactions of your life. 

To expand on some of these previous posts, what the realtors/PMs are doing is trying to determine if you are a Buyer or a Looker so that they can organize their activities/time. I don't generally ask if they lead has other property in the area, but I will absolutely ask about financing/proof of funds, timeline, future goals, etc. before scheduling a showing with a new lead.

But another way, if someone called me to discuss real estate, and then wouldn't answer a basic real estate question like "do you own real estate", I probably wouldn't be prioritizing them as a potential buyer.

My advice is that if you are going to cold call Realtors to discuss real estate (as opposed to building a relationship with one or two), then plan to have a two way conversation about your real estate business instead of expecting them to just hop in the car and show some random guy their listing.

There are a lot of great neighborhoods in the City, and since your husband has 20 years experience on the police force I'm sure he has good insight into which ones you all would be comfortable living in and which you would not.

I find that a lot of my clients who are looking to buy their first renovation put the cart before the horse. The first step is figuring out which neighborhoods you want to live in. After that you need to get a handle on renovation costs, financing, and contractors. From there you can start looking for houses that meet your criteria and that will be manageable projects. Good luck and reach out if you'd like to talk!

Be sure to ask about licenses! Most states, but not all, require Property Managers to be licensed with the state Real Estate Commission.

Of course if you are in a state the requires it the PM should be able to document their license status.

If you are in a state that does not require PMs to be licensed (e.g., Maryland) then that doesn't mean the PM can't have a real estate license. If the PM went the extra mile to get a license, and is comfortable with extra scrutiny from the Real Estate Commision, then I think that that shows their professionalism. 

I don't understand all the fuss. I would still put the tenant through my normal screening process regardless of their ability/willingness to pay up front, but aside from any local laws prohibiting it this can only benefit the landlord.

Someone mentioned that the applicant could be a front for another intended occupant, but thats always the case and your lease should be clear that unauthorized occupants are prohibited.

Screen the tenant. If they have acceptable eviction/credit/criminal history then take their money and be thankful you don't have to collect rent for the next 12 months.

As others have mentioned, Dual Agency sounds scary but its really of no concern. You don't need to do anything more than you would watch out for in a regular transaction.

What is a concern is the "buyer's agent" showing you houses without having the Exclusive Buyer-Tenant Representation Agreement signed prior to. 

Look up the State of Maryland Real Estate Commission’s form called “Understanding Whom Real Estate Agents Represent” (a form that any agent is required to present to a consumer at their first scheduled in person meeting) Under the heading “Subagent” you will see that your “buyer agent” was actually representing the seller during your showing.

Agency is complicated, at least in Maryland.

That sounds about right, as long as you can find a deal where you're all in for $80-100k. I'm not intimately familiar with the Salisbury market (Go Gulls!) but finding a home for $60k that only needs $20k worth of work seems optimistic. Good luck!

The inspector's role isn't to give advice, but rather to uncover issues that may need further investigation. Some will propose solutions but at the end of the day that isn't what they are hired to do. 

203k/conventional Rehab Loans are great for owner occupied properties, but it sounds like you are going to rent this out. You should be seeking a local, reputable Hard Money Lender. Not only will they provide funding, but they will also serve as a second set of eyes on the deal because underwrite the PP/reno budget/ARV based on their investment experience (which is why you want someone local to Baltimore). Be prepared to pay 3-4 points and 12-14% on your first few HML deals. PM me if you'd like a few referrals.