All Forum Posts by: Michael Dumler

@Ethan O. in addition, most leases clearly have a provision stating that tenats are not allowed to sublet the property. I can't imagine any landlord would allow rental arbitrage. Seems as if the tenant is going behind the owners back and breaching the lease. 

@Saul Lechuga since you're in the process of getting licensed, I would start networking/interviewing with different brokerages. Determine what each brokerage has to offer for newer agents and if a structured training program is provided. In the meantime, I would also start letting everyone in your sphere know that you will soon be a real estate agent. Until you are officially licensed, see if you can at the very least shadow/work for a real estate agent to get a better grasp on the market and what the industry entails. Hope this helps!

@Ryan Copeland I love reading as well, but at the end of the day you'll become a better real estate investor by taking action and learning from your prior mistakes. Going through the process and struggle of buying deals and growing your portfolio will be far more beneficial then reading additional books. Books have their time and place, but at a certian point a lot of the material is reused and recycled through. Hope this helps! 

@Mickael Castillo which investment strategy are you trying to implement? SFH buy and hold? Fix n flip? STR? Small multifamily? House hack? It's excellent that you've narrowed down your markets, but in addition, you need to get crystal clear on your investment criteria. I would recommend continuing to network with investors from both markets and see which investments are performing well for people. Also, your market is only as good as your team assembled. Simply meaning, you could be intersted in a great cash flowing market, but without having the the right vendors working for you, you'll be disappointed quickly. Hope this helps!

@Scott Leuchtmann to my understanding, you'll have to speak to a portfolio lender to fund the entire package deal. Unfortunately, for your situation, most portfolio lenders want to see prior investment experience before underwriting a new loan. For this reason, I would either continue with your current deal under contract or seek private financing from a trusted investor to purchase the portfolio deal. How did you plan to finance the current deal under contract? 

@Sean Starkey you have time, your future partner has capital. Bring a legitimate off-market deal to the table and you should have no trouble finding partners to finance the property. If I were you, I would continue to practice analyzing deals consistently. In addition, start attending your local REIA to make connections and find someone that has been looking for a STR. Hope this helps!

@Christopher Murphy your agent will negotiate directly with the seller. The only major difference within the transaction is that you will more likely then not pay for your agent's commission, as opposed to the seller covering commission fees at closing. Therefore, you need to run your numbers and reanalyze including all closing costs plus your agent's commission on top of that. In the offer, you need to include a stipulation addressing for the property to be delivered vacant by closing. Your lender is not going to approve the loan when the property is still tenant occupied. If I had to assume, the seller is listing the property below market due to the fact that the tenant's have not been paying rent. Hope this helps!   

@Jennifer Velazquez 100+ days on market, there's a red flag somewhere then. The property is damaged beyond reasonable repair (although you said it's turnkey), the tenant's have not been paying rent at all, the rents aren't actually set at $1,000 per unit, the area is too undesirable even for investors to handle, etc. Your real estate agent should have provided more insight about the area and deal overall. 

@Jennifer Velazquez why is the listing above market value? Are you using recently sold comps to verfiy? If each unit is renting for $1,000 a month and the seller is asking 340k, you're getting a deal that is above the 1% rule which is extremely rare in today's market. Was the property just listed? Submitting an offer 90k below asking is a pretty big insult and waste of time for the seller. If you do move forward with an offer, I would include a stipulation adressing for all leases and rent rolls to be provided during due diligence. Hope this help!

@Alex Brown you're correct, in this market deals are UC within a couple of days. I agree with others, hire an agent to streamline the offer process and to ensure your offers are being received by the seller. Keep in mind, working with an agent as a buyer will not incur any out of pocket cost on your end. I also would like to point out, are you submitting a POF letter or pre-approval with your offers? Without such documentation, many sellers will not consider you a legitimate buyer. Hope this helps!