All Forum Posts by: Justin Hammerle

@Nik Lavoie - What class of property do you own?  If its B-C class you shouldn't experience any reduction in rent from new product going up.  You really can't build affordable (unless subsidized) these days which is why your B-C class tend to hold their rents.  Class A rents would of course be impacted by new product going up around the area.

@Frederick Wilson - typically hard money lenders are short term high interest loans to acquire and fix up a property, if you are trying to hold long term I would look at refinancing into 15-30 year perm loan. Some larger "hard money lenders" could offer this or possibly even a construction to perm in rare cases; or you could just go with a bank. What will help with the refinancing is to lease out the units you don't intend to occupy hence the 2nd R in BRRRR.

-option/deposit money can become non-refundable after a certain period has passed in the P&S agreement, I would double check to terms of your P&S.

Do you have a signed exclusive buyer rep agreement?  If so, your realtor has a fiduciary duty to you, if they are not adhering to that and just trying to get the deal closed I would reach out to their broker and raise your concerns.  In no case should you be forced through a real estate transaction that you are not comfortable with. 

@Jenine Ly Garcia - Welcome to BP!  Best of Luck on your investing career; starting out shortly after graduating college will put in a great position in the long term.

@Shalen Takaaze - exclusive rep is common for buyers that intend to do a single transaction.  Much less common for investors doing a lot of transaction volume.  I've yet to see an investor doing a lot of volume tie themself up with a single agent.

@Steve Muise - are you trying to buy into a house hack situation? Have you looked into FHA loans? 3.5% makes a down payment much more reasonable. Providence, RI is fairly affordable.

 Makes sense.  I would read through the auction docs and see what options you have to terminate the agreement after signing.

@Sanil Subhash Chandra Bose - you can run the title prior to the auction but you would be spending money to do it, what if you don't win the bid?  Does the auction require a non-refundable deposit and you are trying to protect yourself from losing it?  Typically you run the title when you get the option and if you find any gremlins in there you back out as needed.

If you don't want to do things yourself, you can also hire an agent or property management company to take of the leasing for you.  

@Katie Williams - It looks like you did more than your fair share of DD to screen the tenant.  Sometimes we just get unlucky, or perhaps this tenant experienced some type of unfortunate life event.  I wouldn't let this discourage you from continuing on.

all the best