All Forum Posts by: Marc Winter

Figure your ARV, minus your estimated total repair and upgrade costs, holding costs, etc. Then add in 10% of the total of those costs for a fudge factor. THEN add in your 20--25% profit. That's a formula for backing into an offering price.

You get it for that amount, you have a deal--a profitable one.

@Justin K., I'm a real estate broker, not an attorney.  That being said, we were always taught in real estate 101 that title transfers when the deed is delivered to the buyer.  You may have paid for the property, but if you don't hold the deed and it's not recorded, imho you are not yet the owner.

You can always speak with the tenants, let them know what you want to do to winterize, but again, you don't own the property yet.  

If there are any attorneys online here that have a different interpretation of when ownership is actually transferred, please let me know.

Good luck Justin.

Our leases have a clause that states if an applicant supplies false or misleading information on their application it is grounds for termination of the lease.

I would NEVER sign a document I don't get a copy of--in full.

This tenant got over on you.  Time to turn the tables, dontcha think?

One other option:  if you can find an investment property that will return 10% or more after all expenses and reserves, you could refi the free and clear property.  Interest rates are ridiculously low now, so go with a fixed rate mortgage and use that cheap money.

@Christopher Scott,

First, thank you for your service!

In this scenario, you are holding the wrong end of the gun:  you are chasing the money when you should be hunting a great deal.  Then the money will chase you.

Find someone to partner up with, someone that has the funds and credit to put down on a conventional type loan. 

That would save your VA loan for another day, give you experience in the process, and have a good foundation to build on.

Good luck!

@Mary Jay,

The full-time college students would get the nod IF they would/could provide a co-signer that has verifiable income and good credit, and paid last month's rent in advance at lease signing.  

If not, I'd scrap both #1 and #2, reduce the price to $485 and get more applicants.

@Leilah Davis,

Congrats on getting your license!  

I'd advise you to keep it simple and as uncomplicated as possible, especially at the start of your career.  Disclose on your offer/contract you are a licensed real estate salesperson, buying for your own account.  

Represent yourself, take the brokerage fee after the split with your broker, and move on. You will get credit for the sale on your MLS, gain experience, see the process from the inside-out, receive some (taxable) income, and be more prepared for the next deal.

Also, discuss this with your broker before you make your offer--sometimes a broker will reduce their end of the split when an agent is buying on their own behalf.

Good luck and let us know how this works out for you!

@Colter Reisbeck, perhaps I didn't understand the question, but if you rent it, that's where your cashflow comes from.  If you sell it, there is no more cash flow--you'll have, well, cash.

You might consider tapping into some of the equity in the condo to do some other projects, or just bank the positive for a rainy day.  And we all know there will be some storms coming.

If you do the math, we are already in a negative interest rate status.  The only reason money market funds are paying any interest at all is because the major banks and clearing houses have slashed their fees, hoping no one will notice.

The treasury/Fed will continue to print more dollars to monetize our national debt, ie; paying back the debt with dollars that are worth less (worthless?).

The US has already passed the point of no return in being able to ever repay the total debt owed.  This game will continue until other countries realize that the dollar, like any fiat currency, is not worth the paper it's printed on, or even the bytes of electrons it's stored online with.  

Real assets will continue to inflate in price--if you want to call it appreciation, go ahead, but it really isn't--if inflation is taken into account.

Will there be a crash?  Absolutely!  As soon as we run out of the road to kick the can down.  When will that be?  Unknown.  Stay tuned.  And buckle up.

We manage lots of older units in this area of NE PA, many with knob and tube wiring.  Quick answer to your question--bite the bullet now and get it upgraded.  

Add outlets up to current code standards.  Properly ground and bond the lines where needed.  Make sure it's done by a licensed electrician who pulled a permit and had it inspected when work is complete.  This is a health/safety issue--do not skimp here.

Think about this:  people are working from home.  That means a LOT more electrical load.  Plus, while many people love older homes (our office is in a grand old Victorian built in 1896) I know of no one that would want to live in an older home without some modern upgrades to electric, plumbing, kitchen, and baths.