All Forum Posts by: Michael D.

Hi All,

So I recently received a call back from the Realtor from which I inquired about the 2 family home. I was told that the home is for sale now for 319k and there are currently 9 cash offers on the table, and they are now at bid and the current bid is at 350k. The realtor asked me if I would like to place a bid greater than 350k. As a newbie, of course I can not step into that. I spoke with the realtor for awhile and she said I should really be looking for what they call a "grandma" home. This is a home of an older person or recently deceased person which is completely livable, but need updating. She also told me not to go with a "Big Bank" for my mortgage as this may be more complicated. I was told that I should go with the mortgage broker that she recommended as the process would be much simpler. This sounds sensible but I'm concerned that she may be pointing me to her contact as she may have some interest in me using her contact. Any thoughts on this?

Thanks,

Mike. 

Thanks, James. This input makes a lot of sense, and I was looking into the FHA loan as that would most likely be the route I would take. Thanks again.

Hi All,

I am interested in buying a multi-family home, living in one unit and renting the rest for a period of time. I would like to buy something that needs work, because I have quite a but of carpentry experience, and I can do 100% of the improvements myself. From what I understand, if a home does not have a Certificate of Occupancy, the bank is not likely to give you a mortgage. I spoke with the Realtor that holds this listing, and she said the property is bank-owned and and inspection has not been done yet. I was told that the inspection would be the responsibility of the buyer. So as for my question, how do I go about getting the inspection? and is this something I would be allowed to do before being approved for the mortgage?

Hi All,

I am a 25 year old college grad who is currently working full time, and interested in getting started with Real Estate Investing. From what I understand, first time home buyers can purchase a home with as little as 3 1/2% down. I am interested in buying a multi family home to hold on to as a rental property, and hopefully acquire more in the future. I have been told by a friend that there are a few requirements when taking advantage of the first time homebuyer 3 1/2% option. I believe they said I must live in this home for at least the first year.

If this is not the case, I am hesitant to "use up" this one time option. I feel that I would possibly want to use this for a home where I will plan on living myself. But then again, maybe this investment will allow for a bigger down payment down the road. I would like to get started as soon as possible, and im sure I can come up with the 3 1/2% immediately.

On a side note, I still live at home with my parents, and have monthy expenses of about $800.00. My income is around $3200.00/month.

Any input would be greatly appreciated!!

Eric that is a good point you are making. Pre-Sandy, this specific property would be vauled at roughly 950,000-1,050,000. The property is currently selling for 219,000, and has been priced for land value only. So basing this on pre-sandy values may not be correct.

Hi Everyone,

After hurricane Sandy there have been tons of gutted, water damaged homes that have come on the market at the Jersey shore. I am 24 years old and I see a huge opportunity for an investment with a great return. I have found a few homes that I would be interested in buying, but I have been told by the realtor that this will require a construction loan. The realtor mentioned that construction loans require 50% down and have very high interest rates. Is there any other way that I can obtain financing?

Ryan Reese I think I may be able to give you some advice that you may find useful in the "Paying off student debt" arena. I am a 24 year old recent college grad, and I too am trying to determine the best way to get my feet wet in REI. While I was in college I started a small handyman service where I did small carpentry, and landcaping jobs. It was really tough balancing this with my school work, but I picked up many great skills that will prove to be useful in rehabing properties, as well as made me more money than what most other college students were making. This combined with a tight budget allowed me to save up enough money to pay off my loans at my time of graduation. I'd recommend taking any skills you have, regardless of what area they may be in, and see if you can market them in the form of a small CASH business.

Thanks for the insight James. I guess I would say that I am in the process of trying to determine what type of real estate investing would fit my capabilities best. I am located in Northern New Jersey and I am well aware that property costs are very high in this area. I don't have much capital to invest, but I am looking to start with something such as wholesaling or buying, repairing, and flipping. This is the primary reason I came to biggerpockets, I need to determine how I can go about taking the first step, and what the requirements will be for this. I would like to get started as soon as possible, as I still live with parents, I have a good income, no debt and minimal expenses.

Hi All,

I am a 24 year old recent college grad looking to get involved in real estate investing. I have always seen these real estate investing kits that promise to guide you through the entire process of buying and selling homes for a profit. I have attended many seminars for these where they eventually end up trying to sell you the kit for $1,500+. I know many of them have scam written all over them, but I was curious as to if there are any legitimate and would be recommended here at biggerpockets.

Thanks in advance for the advice.