All Forum Posts by: Michael Dumler

@Dylan Smith this is one of the biggest investment strategies that BiggerPockets and investors alike advocate to newbies. However, easier said then done. With the current nature of today's market, most 2-4 unit properties (Atlanta, GA market specifically) are bought by all cash buyers that are willing to go way over asking. FHA insured loans have regulated lending guidelines, meaning the property has to meet certain requirements before underwriting is applicable. Usaully FHA lending terms are more favorable when the property is move in ready. Also, FHA requires the owner to occupy the property for the first year. Therefore, if one of the units is already tenant occupied and the other is in the process of rehab, then you're technically committing mortgage fraud. With that said, investors use this strategy all the time. Hope this helps!

@Ahsan Faheem maybe inlcude a personal letter with your offer. The seller very well could be emotioanlly attached to the property, and therefore, does not want to sell to an LLC. I would keep the letter simple, inform the seller your plans proceeding forward and ensure a smooth closing. Odd situation, but maybe that's what they're looking for.

@James Devoe it all depends upon what is stated in the contract. Most deals are structured with a due diligence period. In the event that the the buyer wants to back out, they can do so during DD and expect to receive their earnest money back. If the contract waived the DD period, you're techniclly binding. 10k EM for a 320k deal is certainly a red flag in my opinion. To me, it sounds as if the seller is trying to pull a quick one and have you sign a contract that is favorable in terms for him. I recommend working with a real estate agent that is experineced with off market transactions. Hope this helps! 

@Michael Morales I can't speak specifically for the California state and national exam, but I highly recommend utilizing Prep Agent on YouTube. The man and his team do a fantactic job of breaking down and simplyifing RE principles and concepts. Take his online practice exams and attend his weekly webinars. Also, don't quote me on this, but doesn't California exempt their math section? If so, that is 10-15% of material you won't have to worry about. Best of luck! 

@David DeAvila in this market, no, it should not be difficult to sell tenant occupied and is quite common. However, I would adjust list price accordingly. To maximize full value, most buyers do indeed prefer for the property to be vacant. With that said, if the tenant's have been paying on time and have kept the home in overall decent condition, then I don't see any trouble listing tenant occupied. As with any investment listing, you/your agent need to pull comps which have sold with tenant's in place. Best of luck! 

@Garratt Brannock I saw a similar post about this subject the other day. While one investment strategy may work in one market, that does not necessarily mean it will correlate in another. Others can attest to this, but I believe your investment strategy is dependent on your market and vice versa. 

This may sound broad, but I study every factor/variable that may have an effect on my investment strategy and specific target market. I find it extremely important to know and track your numbers on a consistent basis. It's vital to learn housing metrics such as, average SFH sales price, average vacany rate, lease comparables for different properties/subdivisions. I also look into potential economic trends like, new job growth, relocation of companies, overall increase/decrease in employment. I try to dig into and seek governmental policies, for instance, laws that may regulate/cap rent, property tax increases, different zoning laws that may hurt or help my strategy in the long run. All of this info can be sourced from online platforms and articles, real estate investment meet-ups, and general networking with folks in the industry.

Maybe studying all of this is unnecessary, but at the end of the day, the more you can perceive change in the RE space, the better you can adjust your strategy and criteria to profit in the market. Hope this helps.

@Consuela Adams the offer would have to include GAR form - "Assighnment of Purchase and Sale Agreement Rights" 

The seller and their agent know exactly what's going on. I would highly recommend using an agent to represent you. If I had to guess, the seller will not accept the offer with this form included, now of course knowing that it is to be assigned. 

@Tommy Mckeown as an agent, I believe he was trying to convey the message that FHA offers will not be nearly as competitve nor frequently accepted, compared to strong conventional or cash offers. Deals fall out of contract all the time due to strict guidelines FHA imposes. Given the nature of today's market, seller's have the upper hand and plentiful of offers to choose from. I'm all for utilizing FHA when it comes to purchasing a 2-4 unit, but be aware, you're up against other buyer's that are bringing strong offers to the table. With your five year advanced timeline, the market could be in a totally different state, in which FHA may make sense then but that's pure speculation. Continue to establish relationships with other lenders so, when the time does come for you to purchase, you'll have all of your ducks in a row. Best of luck!

@David Calixte There is always the debate of whether or not investors should obtain a real estate license. I think unless you're doing multiple transactions a year, it doesn't make much sense. To give you an idea of costs associated with obtaining a license: RE course ~ $500, state and national exam ~ $200, fee to activate license ~ $200, becoming a member of the National Association of Realtors to access contract forms ~ $500 annually. Also, keep in mind, commission splits between the brokergae is usually 70/30 or 60/40, you do not pocket it all. Fianlly, the state commission requires you to take continuing education courses throughout the year. 

If you are still interested, I used AceableAgent for my licensing course. The course is an online platform that is self-paced so, if you really wanted to, you could easily knock it out within week. With that being said, it definitely takes some time to prep for the actual state and national exam. Best of luck!   

@Auralee Smith liens are a matter of public record, you would need to search the county clerk's office website. Each county has a different system setup but it all should be somewhat straight forward. You'll need the address of the property to access records, in which you should see a section for liens. If that fails, you can always call the clerk's office to guide you through and help out.