All Forum Posts by: Ken M.

Early in my investing career, I had some success, but then the crash happened. It took more than a decade but I am excited (and terrified) to re-enter the fray.

After dipping my toes into the market, I have battled against my paralysis and taken the leap. I have a property (fix and flip) under contract, but now, shoot, the REAL work begins.

I am located in Milwaukee, WI, but my property is in a near suburb of the city. It was a VA foreclosure and in an incredible neighborhood. Structurally, the property is in pretty good shape EXCEPT one problem that I cannot properly assess: the plumbing will not hold pressure. I have some guesses as to what the problem may be, but I need a good, investor-friendly plumber.

I will also be doing all the cosmetic things you can think of: paint, flooring, bathroom reno, kitchen reno, so I am open to carpenter or design suggestions.

Also, I am considering alternative financing options (beyond Hard Money). If anyone has tips or suggestions, I am more than open.

For better or worse, I am taking a leap. I am hoping the Bigger Pockets community can help. In fact, it was the community that got me this far!

Thank you everyone.WIiling to share more details if people are interested!

If the plumbing won't hold pressure, you have a leak. It can be located a couple of different ways depending on circumstances. First the obvious, look for wet areas around all of the pipes. There is something called a "wet wall" that the pipes go through behind the toilet and sink or wherever pipes are. Listen to the wall and if it talks to you (a hiss) you have found a problem. You can enter the wall from the bedroom behind. It's easier to patch that way. Turn the water heater valve off and see if that stops the pressure loss. Have the water department come out and they will check from the street to the house from leaks.

0 Votes

Milwaukee, Wisconsin

Quote from @Portia Dampier:

Hi BiggerPockets community,

I’m fairly new here and somewhat new to real estate investing. I have every intent to complete my very first fix-and-flip project in 2025!
As I look to grow, I’m considering joining a coaching/mentorship program like Partner Driven or something similar. These programs often assert to guide you step-by-step through the process, provide assistance with funding, and connect you with contractors. However, they also come with a significant upfront investment.

Before I commit to anything, I’d love to hear from those with experience:

Are these programs worth the investment?

Have you found them to be genuinely helpful in advancing your real estate goals?

Are there other, more cost-effective alternatives to gain similar support and knowledge?

Any insights, advice, or personal experiences would be greatly appreciated! Thank you in advance for helping me navigate this decision.

I have a long history of fix and flips in several states and the first thing I want to point out is that you make your money in the "buy". You have to buy right, know where the market is headed, know ALL of your expenses and know what your various "outs" are before you commit to a property or you will lose your shirt.

2 Votes

Atlanta, Georgia

Quote from @Felicia Vinces:

I'm in the process of vetting some seller financed deals for my solo401k portfolio. I'm looking at monthly cost to seller vs. anticipated rental income, purchase price relevant to the ARV of the area and interest rate, balloon, etc. What criteria do investors use to determine if a seller financed deal is good? What should I consider about the purchase price, interest rate, and other terms?

When I do a seller financed deal, I'm looking at a pretty broad range of factors. The first thing I ask is why am I Buying the property.

I always look at the exit strategy first, is it going to be a rental, a lease option sell, am I planning on living in it. Just because a seller is willing to do seller financing doesn't mean they will sell for a price that makes sense to buy. They are either dealing with a property they are having problems with or they want more than market vale.

But, basically it's experience that wins the day. Unfortunately experience means you've made some costly mistakes :-) So, to avoid those costly mistakes, when I take on a new approach in investing, I buddy up with someone that already has experience doing them. Because there are nuances to seller financing, a lot of space would need to be devoted to covering the subject to make sense, and that requires sitting down to a cup of coffee for a long discussion. It also gets treated differently in Texas vs CA vs AZ. There are state specific items to take into consideration.

0 Votes

Quote from @Alex Collins:

Hello!

Backstory: As some of you know based on previous post of mine I've found my first "possible" real estate deal. A co-worker of mine is selling her condo (which is not listed on the market) and is allowing me first dibs. It's 3 bed 2 full bath and 1,300 sqft. Currently valued at ~180K. She still owes 57k on her 80k mortgage. Although it's valued at ~180k I'm thinking about offering her 90K because it needs some work. Both bathrooms need a complete remodel as well as the kitchen, the ceiling in 2 of the bed rooms are bowed (previous roof leak that was fixed) so new ceiling drywall, appliances, flooring, and paint throughout. I'm assuming I'll need 35-40K for the rehab which would bring my investment total to around ~130K. I've already had a home inspection done and it basically told me what I already knew about the property. I'm now looking into having a title company do a comprehensive title search before officially putting in an offer.

If I was to purchase the property from her without realtors involved on either side how would I do so? What are the pros/cons of doing a deal in this manner?

How did you arrive at the value of $180,000? Is it "by guess & by gollie" or did you involve someone with experience in these matters?

Are you self-funding the transaction or will you be using a lender?

I'm just curious why, if the property is worth around $180,000 she would agree to $90,000? If she could put $40,000 in to it and sell for$180,000, then she would be $50,000 ahead. That's quite a lot of money to most people. Maybe she will sell for less, but I suspect you'll have to convince her that she benefits from the transaction somehow.

Usually, a title company expects a written purchase and sale agreement first, before they will do a title report and they need to know the sales price in order to set the coverage.

0 Votes

Indianapolis, Indiana

Quote from @Justin Smith:

good afternoon, I appreciate your advise in advance.

I have a tenant who sent me screenshots of some conversation where he was letting the upstairs tenant know they were being loud and asked to quiet down. The alleged loud tenant had some harsh words for the downstairs tenant. Cops were threatened to be called but they were not. I have no proof since I dont live here. The downstairs tenant has cameras in his unit and said he has some stuff on there.

- the alleged loud tenant is month to month until 12/31. I just had her sign a new lease adding her boyfriend who she is alleged fighting with that starts 1/1/25 so If there is going to be a major issue id like to handle it ASAP before that lease would start.

i received the messages at 2am and have not responded to him.

1. Should i ask the downstairs tenant for the footage to have as proof to have and document for anything in the future?

2. Should i speak with the alleged loud tenant or send communication out to all as a reminder?

3. I thought about advising the downstairs tenant to call the police next time, would that be good?

4. What other advice can be provided here? I want to make sure i am doing things right thing here but also not accusing anyone and making things worse. I do also want to ensure this doesnt happen again and if needed work to evict.

There is an implied covenant of "quiet enjoyment" by law that can be enforced. I'd just notify the tenant in writing what that means and what the consequences are.

4 Votes

Green Bay, Wisconsin

Quote from @Jimmy Rojas:

Im located in Phx,Az, have access to MLS recently i noticed under the sold section there is a lot (more than before) homes being sold below asking price and some in cash, anyone know whats going on, Im currently looking for a home so i guess this is good for me.

It's nothing sinister. ;-) Houses aren't actually worth what they are being listed for. The high in the market was summer 2022 and actual values have been declining.
I am offering 85% of list and getting my offer price.
The other alternative is seller offering to buy down the interest rate for buyers. That's popular too but I don't think that gets properly reflected in the MLS.

1 Vote

Phoenix, Arizona

Quote from @Christopher Lynch:

I recently watched an episode of BiggerPockets where the guest discussed how he started a real estate investment company and buys commercial properties with 0% down. While I understand the basic structure of General Partners (GP) and Limited Partners (LP), I was under the impression that GPs always had to put 'skin in the game.'

I have 10 years of experience in retail real estate and a couple of partners who are interested in investing with me. I also have some capital to contribute.

Could someone explain how syndications are typically structured, and how are people using Other People's Money (OPM) to build large portfolios with little to no money down?

A syndication requires an attorney, about $15,000 in legal fees and paperwork for a PPM. Yes, most syndications have the leads put substantial money in to start the thing. It is regulated and you need to learn the law before accepting any funds from another entity (person) in a syndication. Take a look at https://www.biggerpockets.com/forums/432/topics/533888-syndi...

0 Votes

Quote from @Godsheritage Adeoye:

Hey everyone, it’s Godsheritage here!

I’m thrilled to announce that I just closed on my first investment property within one week of joining the BP community! Even more exciting, I’m already getting my second property under contract tomorrow with my partner.

A huge thanks to everyone for the incredible content! It’s still surreal to me that I’m able to own real estate at 20, but I know this is just the beginning. My goal for 2025 is to complete 50+ transactions and collaborate with even more people in this community.

If you’re a private money lender, investor, or fellow enthusiast feel free to reach out. Let’s connect! 🙌🏽

Congratulations. Step two is learning to make it profitable. Step three is learning how not to lose it.

1 Vote

Quote from @Tove Fox:

What are the pros and cons of each when compared? Thank you!

Commercial real estate is headed for a huge retrenching in 2025. Residential at least has a chance of being profitable.

0 Votes

Quote from @Paige Halamicek:

I am currently looking at a 10 acre property in Texas with a 2000sqft 2005 double wide. It would be a primary residence. The mobile home I would only want to keep for a few years to live in before building a new home.
From my research you cannot sell the mobile home without it being paid off since the land is financed with the home. I could do separate loans on the land and mobile home but I think that may not be the best option.
Is there any other ways to finance that would allow me to sell the mobile home in a few years and not be stuck with it for the life of the loan?

Mobile homes are treated differently depending on if it has had "elimination of title" or not. Elimination of title means that the owner has made the mobile "permanent" by removing the wheels, placing the mobile on a foundation, putting skirting around the mobile and filed the correct paperwork. Then a bank will lend on the two as if they were one and that will result in a higher lending amount. In order to sell just the mobile after that is a real problem. The lender lent based on them being one thing which secures the debt. They are unlikely to allow you to break up their security.
Also, a 2005 is old enough that you may not be able to get financing. Find a lender first that will do financing ad how much, before planning the future. And remember, lenders change their requirements over time, so what they will do today may not be what they will do next month.

0 Votes

All Forum Posts by: Ken M.

Ken M. has started 66 posts and replied 891 times.

Post: Stepping out on faith, but looking for support/advice

Post: Seeking Advice on Coaching/Mentor Programs for Real Estate Investing

Post: What makes a good seller financed deal?

Post: How to privately purchase a property from a buyer with a mortgage balance

Post: noise complaints - couple fighting - NEED ADVISE

Post: Recently homes are going for less than advertised and more cash deals

Post: How To Start a Syndication ?

Post: First investment property secured, and second under contract at age 20!!

Post: Residential vs. Commercial Real Estate Investing?

Post: Buying land with a mobile home but want to sell mobile home