All Forum Posts by: Michael K Gallagher

Congrats on the deal!  way to be creative and use your strategic advantages!

Congrats on the first investment!  I too need constant reminding that its not worth doing it myself most of the time....hardest habit to break.

Quote from @William Rivera:

Thank you @Ben Miller do you recommend investing in cashflow or appreciation in the beginning? I've been looking at deals in Dayton that would meet my 12% cash on cash criteria, but i know the appreciation is low. I also have been looking in Columbus where I dont really come across properties that meet that criteria but i hear the appreciation in Columbus is good. 

 Yeah this is accurate, the appreciation in Dayton is essentially non excitant, but for an example we've done top bottom duplexes that sell for about 89K need some work, but will gross 1500 a month.  Columbus' economic fundamentals are just so far above and beyond Dayton that you see substantially more appreciation really in any area.  but there is a play in each location it just depends on your goals, price range, etc.   

Quote from @Jerry W.:

@Michael K Gallagher, thanks for your insight.  I try to keep a pretty upbeat and grateful attitude, but for some reason reviving the ghosts of the cold war hit me pretty hard.  I had honestly believed that we had left most of that political garbage of live the politics I tell you or die or I will melt the world in an atomic fireball stuff was behind us.  Maybe it is the nearly identical actions and reactions to Hitler in world war 2 that makes it so eerie.  

"Eerie" is the perfect way to describe it I'd say also.

Quote from @Sarah Bojorquez:

Why do you need a constable? As far as the contract, in the contract he wants to use is there anything about the contract not being assignable? (I have only ever used Ohio contracts so I am not familiar with PA ones). If so, would he be willing to sign an assignment addendum?  He may just feel more secure with all of the legal jargon in a realtors contract, but if you can get it filled out the way you want it should be ok.

 This was my thought, really you can do whatever you want in a contract addendum, and overwrite or alter any part of the contract, as long as all parties sign and agree its pretty cut and dry.  I'd also check the title portion of the realtor contract, ours has some specific language in it about the title insurance and such so just make sure that's applicable in your area if indeed it is present in the contract.  

Interesting sentiment @Jerry W. I too believe there will be some impact somewhere in the economy, if that impact is truly a free market reaction/natural occurrence driven by free competition, or if the change is already determined and the powers at be are simply creating the distraction they need... is yet to be seen.  I think our mindset is the most important thing at this moment in history and that agility and comfort within change is the most important thing we can practice. Real Estate in my mind remains a basic need that will remain in demand regardless of global economic developments, and it is simply up to us the investors to manage, and control those assets in the most beneficial way to our circumstances.  

I'm a firm believer that regardless of economic conditions or global crisis, there is a way to add value and creative income with real estate.

This sounds like a fascinating solution!  I have nothing to contribute as far as advice but this sounds like a very creative way to control your surroundings.  

Quote from @Jessica Mead:

Hi @Michael K Gallagher! Thank you for the advice! We would like to try and keep the tenant that wants to stay since the cat was not hers. It gets tricky with the lease though. Is there anything that needs to be done to end the current lease before starting a new lease with the one existing tenant and whatever new tenant she finds to move in? Is it as easy as a signing a new lease, which means it will supersede the old lease? 

It would be worth checking your local tenant laws..but for the most part in my experience in real estate as long as all parties signed off on something you can pretty much make whatever arrangement you'd like...perhaps if you can have all parties sign a "lease cancellation" policy or something of the sort, and it spells out what is happening and both of all parties sign it, that seems pretty cut and dry to me. It might also be able to be handled in a lease addendum, but personally I think something this major should just be cancelled, signed off by all parties, and starting fresh with the new situation...but perhaps worth adding some language to your lease on how this type of situation would be handled if it happens in the future.  

Everything in general is pushing out that direction past New Albany and the Lbrands beauty park and closer to the Johnstowns and Newarks...the new intel chip plant is going to have an impact as well. not to many people talk about it but the amount of industry happening at the 161 Beach road exit is expansive and drives a lot for that area.  I have not done any deals in Newark specifically, but I'd put Delaware on a similar level to it economically, and the deals we have been getting in Delaware are fantastic.  Rents are almost what they are in Downtown Cbus but the acquisition prices are about half for the most part.  just my personal observations though.

Hey @Evan Morgan my suggestion would be in each case to start by finding a contractor that is able to and comfortable working within the parameters of those loans. Additionally, If you plan to do the work yourself you'll want to confirm with your lender if that loan product allows you to...I'm 99% the 203K product does not allow you to, but I am not an expert in those products.  Just with any rehab project regardless of loan involved it will come down to the contractor to determine how successful the project is.  

Great first investment strategy though!  It will be very powerful for you!