All Forum Posts by: Kenneth Garrett

@Frankie Betancourt

If the bank truly owns it, then they have already foreclosed on the property. Instead of going to auction or they could not get there minimum price they sell It on the mls. Owners still living in the property will be your responsibility to get them out.

In general, REO's are in rough shape and are difficult to finance. Many are without kitchens and other improvements. I have bought many directly from banks before they start to market them so you can get good deals, but you'll probably need cash. It could be a private lender or hard money. In some cases, the bank will finance it for you.

You really need to know what your getting into because of cost of repairs. Like everything do your due diligence. These are great for BRRRR and flip projects.

@Todd Kime

There are a few things to consider;

1. Have you calculated the ARV, you understand the appraisal value you need, but what is your ARV number.

2. $10,000 is really small. Are you sure on the rehab? 3. What is the rent going to be and will it cash after you calculated all expenses; PITI, vacancy, maintenance, etc?

4. The above info is needed to make a good decision.

@Katie Miller

I found Zillow works best for single family rentals. Apartments.com works best for multifamily.

@Cory Anderson

They are a great product for using the BRRRR system where you have forced the equity through the rehab. You will need at least 25% down or in the case of a BRRRR, equity after all work is done and a tenant with a lease is in the property. My first BRRRR was a purchase of $85,000 + $17,000 rehab. Appraised for $125,000 almost got every penny back during the refinance. It has to have a positive cash flow typically at 1.25, but that varies per lender. It can work with a straight out rental purchase as well.

@Marcus Joseph

Attend REIA meetings and any other real estate conferences or seminars. This is how you meet with people face to face. Another option is to attend conferences that are talking about self directed IRA's. These are people looking to move funds from an old 401K to invest in projects or become private lenders. Self directed IRA's are one of the formats people use to bluster there retirement funds.

@Kyle Curtin

I’ve always used one from day 1. I use this to determine what the cost are associated with damage to the unit outside of ordinary wear and tear. I send them a copy of the sheet they filled out and my notes relative to withholding cost via the security deposit return.  My checkin/checkout sheet also tells them the cost associated with damage to the unit.  It’s pretty thorough, but I’m always updating it as things crop up.  You can never address all situations.

@Shannon Smith

As others have said, moving the property from your personal name to an LLC is technically changing ownership and that kicks in the due on sale clause. If it was your intent to use it as a STR then you should have told your lender that was the goal. Transferring to an LLC also removes any warranty's from title insurance. In case something comes up about the title or other deed issues you will not be insured for that through the title company. I only know of one instance where a loan was called due. They had to quit claim it back to their personal names. It is unlikely that it will happen, but it is possible.

@LaMancha Sims

You can partner with someone who does not have good credit and whereby you could be a credit partner.  Many people have partnered with experienced investors who either don’t have good credit or they are maxed out on loans.  This is a good way to learn as you go.

@David G.

Cash on cash as @Joe Villeneuve stated is all cash that you put into the deal that came from your pocket/bank and or other resources. To be specific, it includes down payment, closing costs, rehab cost if any and any other cost. If it were a BRRRR you would include insurance, property taxes, cost of money if applicable etc., until you refinanced (you'll need to include any refinance cost as well). Then when you refinance if you're able to recoup all of your money it's a 100% cash on cash, which is the goal of a BRRRR. If you put in $50,000 of your cash and at the end you were able to recoup $40,000 your at 80% cash on cash. Hope this helps.

@Matthew Rice

I always attended REIA meetings and real estate investment conferences. They are a great way to meet people. To me, real estate is a people business and meeting face to face lets you build those relationships much better than social media platforms. I would attend any kind of real estate event. COVID definitely changed the way we do business, but I see more and more network gathering events taking place.