All Forum Posts by: Marc Rice
Marc Rice has started 3 posts and replied 1807 times.
Post: How to even start with Investment Properties....Prefer Out of State
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Casey Serafino-Lee:
Hi
I am a newbie investor. I am interested in investing out of state as I live in California and our tenants rights are awful here. It is so difficult to get rid of bad tenants....plus the ROI here is not great.
I am open to any state outside of CA and more interested in the mid-west. I am thinking about purchasing a turn-key investment or maybe just a property off MLS and hiring a property manager. I have a full-time job, plus I do real estate on the side so my plate is full and cannot do a fix and flip.
If you were me, what steps would you do to start? Contact a lender first to see what I can afford? Find a rental market first? How do I even find a good rental market. (I plan on purchasing and holding.)
In addition, I want to put my property in an LLC, so I am not sure how to factor that in.
Anyone that has DONE any of these steps, any advice you have is appreciated.
Thanks!
Casey
You should identify a good investor friendly agent in the markets that you're interested in and ask them for the turnkey deals you want, property management referrals, and good lenders to close in an LLC. I can send you referrals for the latter two for Columbus, OH!
Post: Advice for time share seller
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Maile Winward:
Aloha all,
I’m currently getting into the real estate world and have come across someone who has requested my help with her problem. Naturally I want to help everyone I can as that’s how I feel we truly become successful. However have no idea about the time share game (nor do I want to get into it).
I was hoping someone in the thousands of people here could provide me with some insight, reliable resources, or best yet a credible person in Hawaii that I could direct this client to.
I appreciate any and all help!
aloha 🌺
I would look up recent sales of timeshares and connect with those agents/brokers who did those deals.
Post: Beginner- want to house-hack
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Caroline Schneider:
I'm very new to the world of real estate. I ultimately want to earn cash flow that I can use for retirement. I considered house-hacking, but I was only pre-approved for a home worth $200k, worth as much as a fixer-upper, and I prefer a home that's move-in ready. I don't have anyone to co-sign a lease with me, and I don't think I'd qualify for an FHA loan. Does anyone have any recommendations or know who has similar goals?
If you buy a 2-4 unit owner occupant, you can use the rental income from the other units to qualify your income debt-to-income ratio. Also FHA has more leeway on DTI.
Some lenders allow "non-owner occupied co-borrowers" from a family member too which would allow you to qualify for more.
Post: Columbus, OH Contractor Referrals
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Ohad Lehman:
Quote from @BJ Everson:
My contractor moved out of state earlier this year and he has been very difficult to replace. Does anyone have a general contractor to refer that can handle full renovations?
Hi,
Did you find one?
Can you please share?
I am starting to invest in Columbus and looking for FLIP, need good and reliable constuctor
I'm located in Columbus. Finding contractors who can handle flips efficiently is a very specific contractor. You will need to vet a lot of them until you find the right one. Having good standardized material ordering lists helps too.
Post: Networking with Investors & Lenders
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Shaleaha Flowers:
Hi All, My name is Shaleaha, I’ve been studying Real Estate since February of 2022, and enrolled to a paid mentorship. I’ve also read books such as Think and grow rich, The Millionaire Next Door & Rich dad poor dad which then inspired me to start my own business to gain financial freedom and build great relationships with other people. I am also new to this incredible resource Bigger Pockets Community. More importantly, I am looking to start networking with investors, investor friendly real estate agents and attend networking events to enhance my portfolio. My goal is to invest in fix and flips to build a rental portfolio and/or buy property to perform a complete renovation and put it back on the market within 6 months. I’ve learned while being mentored, in order to thrive successfully in my goals, it’s all about networking and solid connections. I’ve written out a Business Plan for 2023 to make sure I am staying focused and aligned with the core values of planning, finding deals, analyzing the deal, get funding and staying motivated. I would love for a seasoned investor/lender to review it and give thoughts and/or recommendations. Thank you for reading. I look forward to hearing from you.
Best of luck! Buying a 2-4 unit house hack is a great way to get started with only putting 3-5% down. Ask your lender about the HomePossible 5% down 2-4 unit loan program, FHA 3.5% down loan program, and call around until you find a bank who can do a 2-4 unit portfolio loan for 3-5% down with no PMI (some of these portfolio loans require you to be a first time home buyer).
If you have any questions I'm happy to help. Make sure to find a good investor friendly realtor who owns property themselves.
Post: Medium Term Rentals
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Sarah Schopbach:
Hello Bigger Pockets Crew,
My husband and I live in Asheville, NC. But we are looking to do our first investment somewhere NOT as expensive as our current town.
Does anyone have experience in doing well in the MTR market focusing on hospitals to recruit nurses?
The Midwest is a great market to invest in for MTR. I'm located in Columbus, OH and have started to do a lot more MTR over the years. It seems that a lot of traveling nurses like private 1bds and studios with parking/laundry.
I personally prefer 2-4+ units with 1bds and studios due to the ease of management and stability where they would cash flow as long term rentals (LTR) as well. Some people like the single family houses in nicer areas for the 250-400k price point but I find it hard that those will cash flow if you ever needed to make them a pure LTR.
Post: Engineering DINK2D Starting out in Real Estate
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Evan Zeigler:
How ya doing, Bigger Pockets!
My fiancée, Elizabeth, and I are extremely excited to graduate with engineering degrees this April. I can’t wait to start building our wealth by investing our W-2 income in real estate. As the title says, we will be dual income, no kids, and two dogs. We love our family and want to free up our time to spend it on the things we love.
I found Bigger Pockets in May 2021 which showed me that real estate was a great way to do this. The reason I haven't taken action up to this point is that we have been in engineering school, and I would rather focus on our degrees right now to have that as a safety net and fruitful source of capital.
The plan is for her to stay at home once we replace or close to replace her income with unearned income from assets. Our post-graduate location will be Dayton, Ohio, and we plan on investing in the Midwest.
Now for my call to action! I would like to connect with investors in Dayton, and take any advice from the community. Mainly interested in buy and hold and BRRR investing (Not interested in house hacking). Can't wait to get started!
Dayton is a great market to invest in with a lot of growth starting to happen there. There are some great 2-4 units to be had at affordable entry prices.
Post: Mastermind group Cleveland Ohio
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Welcome! Check out the local Facebook groups in Cleveland and you can find some good ones
Post: Buying a second home in the current market
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Erik Lopez:
Quote from @Marc Rice:
Quote from @Erik Lopez:
I have been living in my current home since 2021, I have thought about potentially buying a second home and rent out my current one where I am living, what's sort of stopping me is the fact that interest rates are really high and there has been a lot of layoffs in my industry, is anyone else in a similar situation as me?
Better to buy while you still have a W2 if you think you have a chance of getting laid off. Buying a 2-4 unit owner occupant for 3-5% down is a great investment. You can go FHA, VA, Home Possible, Portfolio loans from some banks offer 5% down no PMI.
Use the market uncertainty to your negotiating efforts.
Unfortunately 2-4 units tend to sell very fast in my area, so a single family home is the next best thing for me
If you try hard enough you can find one - you should be networking with brokers/agents, wholesalers, and checking FB marketplace in your local area daily to find one. Go on Fiverr and pull a skip traced list of all 2-4 units in the zip codes you want and cold call them.
There's always a way!
Post: How I Was Able To Get My Investor Client 26% Cash On Cash Using Seller Financing
- Real Estate Agent
- Columbus Cleveland Dayton, OH
- Posts 1,875
- Votes 1,835
Quote from @Jay Hinrichs:
Quote from @Marc Rice:
Quote from @Jay Hinrichs:
Quote from @Jimmy Lieu:
Quote from @Jay Hinrichs:
Quote from @Ed W.:
@Jay Hinrichs I'm on BP very little but you are clearly one of the most prolific, experienced, accomplished and knowledgeable posters. That said, I'm not understanding your post (most likely due to something on my end, not yours). I've done many seller-financed deals - both short and long-term, wholesaling and holding for rentals. A truly good agent can, no doubt, help in a variety of ways but there are typically not many good ones to choose from and I've done all of my seller-financed deals without agents.
my point was most wholesalers cant pull this off.. whereas good agents can.. of course buying direct thats up to the individuals talents.. And of course not all agents are investor agents or versed on seller financing.. although there is no mystery to a seller finance deal its pretty simple really.
Agreed, a lot of agents I've talked to don't understand the concept of seller financing and when you try to explain to them and they need to explain it to the seller, it becomes a complete mess to be honest! Most agents just understand the conventional buy and sell process unfortunately
when I started my RE sales career all I did was seller finance I had no patience for dealing with banks and appraisers LOL. One major push back you get is the down payment.. I sold that by working a deal with my seller.. where by I would give them most if not all the down payment and I would take 80% of the monthy payment until my fee was paid.. I created a very nice income stream for myself over the years doing this.. U know mail box money. The other thing is I became somewhat of an expert at Wrap deals and all inclusive Deeds of trust ( the document used to wrap the mortgages).. And of course did lots of Sub too wraps etc.. These are not very difficult concepts to understand you just have to under stand how escrow and title works.. I know in many markets RE agents have NO CLUE whatsoever about title and escrow its just a big black hole mystery to them.
From what I recall you used to do this a lot on land in the PNW right? Would you mind clarifying some of the seller financing strategies you used? Thanks in advance, you're always a wealth of info!
This activity was in Northern CA Sonoma Mendocino and Lake counties. I did some of it in Oregon when I was in the land and Timber business buying and logging timber land then doing short plats and selling lots to those that wanted to build.
"where by I would give them most if not all the down payment and I would take 80% of the monthy payment until my fee was paid"
Do you mean that you would act as the agent/wholesaler/broker between buyer and seller and you would have for example a $10,000 commission on there that you would get paid out gradually over time as the buyer made their monthly payment to the seller? Would that all be done via an escrow account through the title company with you having a lien for that $10k on the property?
Yes in my Days of doing this in CA I was strictly a Broker there was no such thing as wholesaling in those days. We would either set up split payments with a mortgage servings company .. I would take second many times so the buyer paid me direct for my portion. And sometimes with clients I trusted it was just a hand shake.
"The other thing is I became somewhat of an expert at Wrap deals and all inclusive Deeds of trust ( the document used to wrap the mortgages)"
Would you use this to help your buyers bring less cash to the closing table when they bought their real estate/land deals from the sellers? Or would you use this when for instance you would buy a piece of land from a seller for $100k on seller financing terms between you and the seller at lets say 5% interest, 20% down, 30yr am, 5 year balloon AND THEN turn around a sell that land again to a new buyer for lets say $200k on seller financing at 8% interest, 20% down, 30yr am, 4 year balloon? At which point you'd have all your cash from the down payment back and make an interest rate passive spread?
"And of course did lots of Sub too wraps etc"
I've heard of subject to's where the buyer just takes over the sellers payments and maybe gives them a little cash for their equity/down payment and somehow takes title (not really sure how the title transfer works to not trigger the due on sale clause)....is that what you would do here?
We did most of the wraps on props we bought Subject to the existing Deed of trust.. Very few had bank loans on them they were primarily seller carry firsts TDs So we would wrap those.. Those note holders even though there was alienation clauses most owner carry back folks did not know they had that right . And frankly as long as they got paid everything was fine. Did hundreds of these throughout the Jimmy Carter interest rate mess. Your seeing seller carry back come back in a big way and like I always say about real estate deals there is nothing knew these were techniques my Dad taught me in the 70s and 80s.. He also taught me about fake lenders and up front payment / due diligence schemes and of course not a day goes by that someone on BP does not ask if anyone has heard of this lender with their 5% terms no qualify etc etc. just send me 2k up front LOL.
We
Super helpful - will need to master my facilitation of "subject to the existing deed of trust" and learn about "split payments with a mortgage servings company" to allow buyers to finance my commission effectively as a broker.
Thanks!