All Forum Posts by: Michael K Gallagher

Welcome back!  and good morning glad to have you!  

Huge congrats!  can you share a little about how you priced your property for travel nurses?  I've been curious how to comp those kinds of rents.

Hey @Brandon Gamblin I'm not sure I entirely understand your question, but the fact that an investment would be seller financed does not really impact its "profitability" if you well or its ability to create a profit.  If the income and expense ratios for the deal make sense with the seller financing then it can be the same as any other investment strategy.  

If you are looking for some ideas on how to structure a seller financed deal considering the desire to move into the property....its actually a fairly interesting idea, and the best I can come up with is to suggest  finding the deal through your normal wholesaling channels but you are now looking for a property you can occupy.  I'd seller finance it as the initial purchase, then using your funds from your wholesaling do a live in flip on it over 2 years, and then sell it at the end of the two years, you pay back the person holding the original note just like you'd pay back a normal mortgage upon sale, and you'd have a net profit tax free because it was your primary residence for 2 of the last 5 years. 

Now I am not a lawyer nor do I operate in your area so I'd suggest talking to a title company and CPA in your area to understand exactly how the deed and title work need to happen to make this or any other plan work.  

But its an interesting concept if you can find the deal to make it happen. 
  

Fantastic deal @Austin Steed do you mind sharing more about your experience with the commercial loan product on a duplex?  Reasons you went that direction vs other options.  Congrats again!

I don't know a direct yes or no to your question but I'll tell you that from what I've see in my market I'd want some kind of vandalism insurance for sure, and if there is a specific product that covers arson I'd consider it....I've had like 4 vacant places burn to the ground in my area recently.  Or you know try not to leave your flip boarded up and vacant for like 2 years...that could also prevent that, but yeah those are just two things that are a huge deal here in some areas to take into account.  

your local area could of course differ.  

The biggest con I'd say is if your payment on the current place goes up...but if you can absorb that or getter a greater return enough to offset that increase with a new purchase, then I'd say its a slam dunk. Other things to consider, what will the new purchase do to your DTI once its all said and done...Does that end result align with your investment goals? Are you able to refinance the current duplex with another owner occupied loan? That would really get you the best terms I think. But as long as the potential new returns you'd get would counteract any increase in payment Its a great idea! Let us know how it goes!

I'm finally going to make it this year!  Although I finally just went to NOLA for Mardi Gras after missing the last BP Con.  Looking forward to October!

If the listing agent is really not performing well for the seller my first instinct is to have the seller call the broker (unless the listing agent is a broker) and tell them they want the contract voided.  If the seller is unhappy and can document that the agent has not been acting in their best interest, they might be able to get something done...this is pure speculation.  Otherwise yes in-fact most listing agreements have protection periods.

I don't know your personal situation or financial situation but I'd say the number one thing to do before jumping into real estate full time as an agent is get your own finances in check and ready to support some volatile months during the first 12-18 months. I'd also recommend using your current W2 if you can to set yourself for success by buying a multi unit, if you are able to, and living in one side to reduce or eliminate your own living expenses.  I'd say if you don't have your license at this point thats fine, buy it anyway with another trusted agent or maybe with an agent you admire and would want to work with in the future. 

Regardless, if you are intentional about moving into being an agent and understand that, at least in my opinion, the best producers all have one thing in common...they have put in years and years of daily consistent actions and have a certain amount of discipline to honing their own craft and skill just like anything else.   

And there is nothing wrong with still working while you study and get your license and maybe get your first couple deals.  But I'd say to also put a hard timeline on quitting and moving over, trying to do this job part time is just way to challenging in my opinion.  Its got to be full-time to be successful.  

very cool way to get into some great properties.  Love that they were built with senior living in mind, that tells me you'll have some great long term tenants.