All Forum Posts by: Patrick Henderson

I had a similar situation with one of my rehabs. Luckily my agent was honest and said just tell me its a rental and I can drop the rates. It may be different in your state I don;t know but it doesn't hurt to find out. As my Father always said "if you don't. you don't know"

Okay, While there are many sound strategies for Real Estate investing and dealing with banks is the biggest hassle I can think of and it limits what you can buy. I you are already wholesaling then that should put money in your pocket the quickest. I assume you're are getting them under contract with enough time to close with a cash buyer. That is definitely a sound strategy in my book. As far as I'm concerned. My thoughts on lending through f-mac f-mae. Recently FHA has been loosening restrictions and the other two will soon be following their lead.

If you're acquiring a property for your personal residence. Why not buy it using private funding preferably or hard moneyif you have to, with enough to put it in the condition you want and then refinance it with a bank. Banks easier to deal with a refi than purchase. You probably need at least a 660 fico to get reasonable rates. Also, I would start the process with a bank while the rehab is on going, saving payments on the. If they know you purchased it at a discount and are doing repairs, especially if you come in under market value. The prefer less risk.

I hope that helps Kay

Patrick

Well when the Lease allows is the important issue here. if both leases end at the same time, then it's easier. Just be sure you notify them at the singing. advanced notice of the change is also a good idea. The single thermostat is another issue and could cause problems with RUBS, because only one tenant is in charge of everyones comfort. I hope that helps.

First off, A bank in a short sale situation is in control and will dick you around at every corner. They have lied, acted in, what I consider bad faith with me and there is no one person that makes the decision. not to mention the fact that they don't keep notes on previous conversations you've had with them in many if not most cases .I highly reccomend NOT putting money into something that you don't own. You may never get the bank to agree to your price.

In a single word RUBS. As soon as the lease allows, Have each pay a portion,

My first question is. How long have you owned this property. If it's over two years and its your primary residence. Then, taxes will be little to no problem. However, you rented this place out it may change the tax implications. Check with a tax Attorney or accountant at the least. The 1031 is good but the money must be re-invested in a timely manner to avoid taxes.

There is a lot of good info all over the web but that will not change you. The one thing we must all do is get out of our comfort zones. We cannot do anything greater than what we have done before without leaving that zone. When you get that feeling that is the point where you know you're getting close. If you want to grow, that's the time you push through that barrier. So, take a small step right then and you will look back and ask yourself, why was this scary. Nothing is as difficult as it seems in the beginning. And, if your next deal is your first, don't be afraid to let your seller know it's your first deal. they, many times will feel more comfortable with you simply because many people feel threatened by what they believe is a greedy investor looking to take someone for something. If they know you're a beginner that takes pressure off you and makes it much easier.

A mentor always helps in that situation.

This is a good rule for me. KISS; Keep it simple stupid.

Be a principal in the deal first and foremost. This opens the door to all the possibilities in the real estate investment world. Creative transactions are what I love about this business and make no mistake this a business. Keep records, not just for tax reasons.

My first question why was I given this opportunity. I forget the Latin term but essentially it's, who does this benefit. Is this a test? How soon is he willing to act and what kind sale is he looking for, all or partial.

If it's legitimate offer, He knows what he is doing, most likely. He will expect you to take some sort of binding control. Nature of the business.

Second, Due diligence. Know what each property is worth on it;s own. Is it income producing? Is it performing? Can I make a profit?

Consider all your exit strategies

Fix and flip, wholesale, retail, owner finance and more.

All of these are possible depending terms the seller is willing take and or be a part of. Obviously some of these strategies maximize profits more than others.

If it's wholesale there is one rule.

If there is meat on the table they will come. Wouldn't you?

Good luck. Any questions, feel free to Message me. I don't how that works on this site, as I'm new to this site.