All Forum Posts by: Michael Henry

@Zachary Steidl. Being new myself I set up alerts on the MLS (through a realitor) / Zillow if something peaks my interest I contact my realitor immediately and put an offer in this is normally within 12hrs of the listing being posted.

A lot of times you will be out bid or offer will get rejected several times before you get a property.

 What would be a appropriate amount to offer as a retainer ? I’ve never heard anyone mention, so this is a great learning. 

Is it just me or is it extremely difficult to obtain a scope of work for a property when you live out of state ? I have been unable to make an offer on two different properties due to a lengthy Delay from contractors. I’ve used contractors recommended by other investors here and still have a hard time getting a timely response. What’s the typical turn around time for obtaining a scope of work from a contractor ?

At this point I’ve contacted 3 different contractors about the same property it’s been 6 days and none of them have provided me a scope of work yet after several follow up calls / emails. They all promised a date and did not complete by said date. Does any one else experience this issue?

@Andrew Smith my PM does in fact keep the late fees they have to go through the hassle of collecting the rent (making phone calls , knocking on doors) they can have it as long as the rent checks continue to come in. I don’t see a problem with that.

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Investment Info:

Small multi-family (2units) buy & hold investment.

Purchase price: $78,000
Cash invested: $22,600

1930 2 unit duplex well taken care of move in ready. 

What made you interested in investing in this type of deal?

Wanted a low cost investment property that I could purchase using only equity from my first rental. Settled on a duplex to minimize risk, one side was already rented which covered 100% of the mortgage. 

How did you find this deal and how did you negotiate it?

I found this deal on the MLS, ran my numbers to come to get a 10% cash on cash return. Offered a price that would give me 18% return and negotiated from there.

How did you finance this deal?

This was conventional financing with 25% down. 5.5% interest 

How did you add value to the deal?

This property was turnkey, I was fortunate enough to find a seller that made all repairs at closing. (New stove , small plumbing repair , replaced a window that was broken)

What was the outcome?

When closing one unit was rented at $465, 3 days after closing received a prospective tenant application to rent second side for $495, a 6% increase from previous tenant. Walked in with $15k equity before my down payment, overall smooth easy process. 

@Chris Thomas

I personally put 4% of my pre tax dollars to 401k (enough to get company match), 30% of after tax dollars into business account for real estate. I use to strictly invest in index funds.

I also use acorns app which rounds all purchases to nearest dollar and invests in Mutual finds.

@Mirzet Mehovic when you see $100-200 per door this is after expenses , vacancy , maintenance, property management

Truly it’s more like $400-600 per door

@Froilan Halili are you using a personal guarantee ? I gotta 2 credit cards (PNC , Home Depot) and a commercial loan with LLC active less than 4 months but used a Perosnal guarantee.

On a side note I did establish a DUNS number before doing this.

In my pursuit to find a private money leader to finance a duplex under 65k I came across a thread here on bigger pockets suggesting I try rescomm investors.

Contacted the company they agreed that had a few options that may work and sent me an application. The catch is there is $250 fee to submit the application. I haven’t seen this with any other private lender.

When searching for reviews or any information at all about rescomm investors LLC I find nothing but the original thread here I mentioned. Does anyone have experience working with rescom? Or can point me In The direction of a private lender that will finance under 65k for a buy and hold rental.