All Forum Posts by: Michael Dumler

@Mark Greenawalt I've heard some individuals state they are seeing a "cooling off" in the market and that home prices are starting to level out. However, all of this rhetoric is going to vary by market. I have yet to see any significant data indicating a shift in home prices in my market (Atlanta). With the forbearance and eviction moratorium coming to an end, maybe come 2022 will see some leveling out in home prices. Demand still at an all high here and inventory still very low. I don't think will see a correction in the market for at least a year or two.

@Christian Hernandez have you identified a brokerage to hang your license with? If not, this should be your first step. Network and interview at multiple brokerages. Find what's best for you and identify how the brokerage can help you succeed in the industry. Also, if you do not have any prior experience in sales, I highly recommend  you shadow/assist a successful agent your first year. This will allow you to understand and grasp the ins and outs of real estate and will set a foundation for you. Some simple things you can do now, let everyone know that you are becoming a real estate agent. This a relationship based industry. Forgot about having a fancy website or business cards. Your main objective is to talk/network with as many people as possible, primarily letting those individuals know that you are a real estate agent. Feel free to reach out if you want to discuss more. Always happy to chat! 

@Chris Waltz it's vitally impoirtant that you first identify your goals and overall why. What drove you to get into RE investing in the first place? Are you looking to "get rich quick"? I'll be the first to tell you, as I'm sure other BP members will back me on this, RE investing is a long term wealth strategy. As @Cameron Tope mentioned, listening to BP podcasts is a great start. You'll hear different strategies that invidiauls utilize in the investment space and the challenges they had to overcome to get to where they are now. Continue reading books, attend meetups, network with other BP members, analyze deals over and over again, etc.

@Mason Yost surprised to hear the property is still on market after a couple of weeks. If it's a home run deal, I feel as if someone would have it under contract already. Which market are you in? 

I agree with @Bruce Woodruff other opportunities will present themselves. Don't get hung up on just one property. If it makes sense financially to break your lease, then go for it. However, with your current situation it sounds like you might be in a tight spot financially. Can you afford to take on negative cash flow (current rent) to move into the property? Break it down analytically, factor in each cost and then make a final decision. All the best. 

@Nick Nalette as others have mentioned, find a new agent. With current market conditions and overall extreme competitiveness, this a matter of time is of the essence. I strive to get back to all of my clients within a 20-30 minute timeframe. Any solid on market deal will last no longer then two-three days before it's binding and under contract. Once you develop your core four (agent, pm, contractor, lender) stick only to that specific market until you are comfortable with consistently putting in offers. May sound counterintuitive, but I see too many investors try and broaden their net into different markets, only to never pull the tigger and getting stuck in the long run. 

@Jakob Claret income, credit score, DTI ratio, total assets/downpayment are all factors that a lender will dissect when determining if you qualify for a loan approval. Yes, majority of the underwriting is based on income, but one potential way around this caveat is by having a mortageg co-signer. In your case, the co-signer will be added to the mortgage and their income and credit score will be used as security against the loan.

If you're fortunate to have this option, I would speak to as many lenders as possible to determine the best financing avenue for you and your potential co-signer. Don't screw over your co-signer, as they will be just as reliable if a payment is missed haha 

@Kaylan Haight closing costs are simply fees and expenses that the buyer usually pays when he/she purchases a home. Closing costs can run anywhere from 2-3% of the pruchase price and include cost items such as, loan origination fees, appraisel and survey fees, title/homeowner insurance, escrow fees, attorney fees, etc...

Your lender is required to give you an estimated number.

For the sole purpose of dissecting comparables, I mainly look for different factors such as square footage, number of beds/baths, location, distance from subject property, etc. I don't take closing costs into account when comparing properties, as that can widely vary between different transactions/negotiations. 

@Dean Salasnek I've seen a lot of investors turn to the AirBNB space to maximize on CoC. Curious though, how do you calculate vancancy rate when running the numbers? Are there comparables to look at for AirBNB proeprties? I can imagine this investment strategy only works in specific markets. Overall, why did you decide no longer keep as a rental?

@Sipho Mogopudi closing costs are simply fees and expenses that the buyer usually pays when he/she purchases a home. Closing costs can run anywhere from 2-3% of the pruchase price and include cost items such as, loan origination fees, appraisel and survey fees, title/homeowner insurance, escrow fees, attorney fees, etc... 

Your lender is required to give you an estimated number.  

"Seller to pay the majority of closing costs" - great! Negotiation was favorable in the buyer's case and thus he/she will have a reduction in closing costs. Given current market conditions, we're less likely to see this. 

@Sylvester Hill I agree with @Jonathan Greene you need to narrow in on one specific target market and develop your core four (agent, pm, contractor, lender). It may seem counterintuitive, but as a newer investor, broadening your net into multiple markets will hurt you in the long run. First, identify your goals and criteria, then start researching and exploring different markets.