All Forum Posts by: Mark Fedorov

No matter where or what property you are talking about the answer is the same; the appropriate cash flow is what you, as an investor will accept.

From a macro point of view; SFR house prices are based on; location, appreciate of the neighborhood, condition of the property and cash flow. Are you willing to take a lower cash flow for a better neighborhood, or for a building that will appreciate more over the next 5 years?.. I don't know.. do you need the cash? what are your other investment opportunities?

You can't really ask someone else this,  it is why YOU are investing.

Two thoughts first:

it is a rare situation that the owner of a rental property will want to sell the house they rent and not ask the tenant if they want to buy first.

You can not buy what is not for sale.

You need two things; your offer price and the name and contact information about the owner.

You can probably find the name though your county tax collector web site or ask the management company, but keep in mind the Mgt co loses money if you buy the place.

find comps and make an offer, you never know what they will say.

You need to check with your FHA lendor to see if it is alowed to buy a properity from a related company.

Also, keep in mind that you will have to pay transfer tax to the state as you move the title of the house from the LLC to you.

Also, there is no tax benefit for having the LLC have the money be in the LLC or be in your name, if it is a sole member LLC, if they money is in your name or the LLCs there is the same impact.

Talk to you bank about the BRRRR issue, best to map this out with them before hand.

It depends on the banks process. some have a lending committee, some have to get a VP approval some look at a chart to see if you get it.

The best measure is that you ask the lender how much time it will take, if it takes longer than he says with out a good reason, you have a bad lender.

You should first talk to the zoning department to find out if you can do that, some municipalaties have requirement of only s certain a percent of the lot be "impervious" (which means rain water can't go through the surface, so building sqft + sidewalk + pavement). You may have to make it a gravel parking area, so ask the zoning officer about both.

I would be interested to know why you sent the report to the listing agent, if you were not going to use it to negotiate a lower price.

To answer YOUR questions; 

if you back out of the deal they can re-list. if the have the same listing and just change the status to "Available" or make a new listing, that does not change anything. 

They can change the price as they see fit.

The disclosure is made by the OWNER, not the agent, they can re-list and not mention it because the agent could have never told the owner about the report (and no one can prove that they did).

Yes, you can make another offer, however if it will be accepted will be up to the seller and bank still.

You should have said that the owner/bank should pay for the termite removal, because now YOU know about it and YOU have to put it in the disclosure when you sell it.

@Ben Shaikh has a good idea, you get paid to the management effort (I would suggest a simple % of rent roll to manage it + T&M for maintenance), and the profits are 50/50. Wrap the whole thing up in an LLC and you are fine... just make sure that you document EXACTLY how this LLC will dissolve, and what will happen if one partner wants to get out... The best JV's have e plan for when the Partners want to break up.

It works the way you want it to work, you can offer to pay the agent 3% (since they are doing half the work) or nothing since they are not working for you. Your sell price is your sell price.

It is possible that the agent has a deal with the buyer to have the buyer pay the commission, however if you don't pay the commission the agent may pull the buyer to another house... it is a tough situation to be in.

The best city to invest in is your city so you can keep an eye on your business. Don't do long distance, the risk is too high, invest in someplace where you can drive to and fix problems when the occur.

"Even the longest journey starts with the first step"

You have a long road. Let's map this out:

You need to find the owner of the property wants to sell, call him asking him that.

You need to find out if a mixed use, underground parking facility can be built there, talk to the city Zoning officer.

You need cash to buy the land, make the plans and build the thing... (this is where the tough part starts)... You need something to entice people to put Millions (yes Millions) of dollars down for you to do this project, and that is them having faith in you, the one with no experience.... so how would you do that?

Write a project proposal, with details, projected finances, drawings sketches, etc and find rich people to present it to and see if they want to invest... Now if you had like $50K to have an architect do the drawings, have a put contract on the land, and hire some marketing people to circulate your plan, you would probably have a 25% chance of this happening.