All Forum Posts by: Mike Dorneman

@Chris K. Thank you Chris. Usually I’m buying from grown children who are dividing their parents estate. So I usually feel comfortable, however as I scale I know I’ll need to build in some safeguards.

For Sale by owner, Sales Agreements. I’m curious to learn what clauses or protections others builds into their sales agreements to ensure (or allow for legal action) if a private seller sells their property to someone else / backs out of your deal once already under contract. Fortunately this has never happened to me and the last 6 properties I bought were from private sellers without a real estate agent or attorney, however It could and likely will happen at some point... I’m in PA and private sales are permitted, I do however have a title insurance company facilitate the closing for us. Thanks

@Brian Garrett The knowledge just keeps coming from you, Thank you.

@Brian Garrett Thank you Brian. With such insightful and creative ideas like that of the one you shared , I’m sure I will in no time. :) Enjoy your day, Sir.

@Brian Garrett - Sorry if your feelings were hurt Brian. I quickly reviewed the other post and responded to a great piece of advise I had yet considered. I hope nothing else upsets you today.

Colleen F. Thanks very much, I appreciate the insight!

Considering submitting an offer on a 3 unit which is fully rented. The current tenants have been living in each unit between 3-10 years. Concerned about my recourse / ability to collect rent consistent with what the current owner states it is. I don’t want to get into a situation where I’m evicting 2 or 3 of the units. The plan would be to execute new leases the moment we take ownership, however the tenants may simply refuse. Per the current owners rent are and my calculations, I’ll cash flow about $500/month on the entire property. This accounts for all normal expenses as well as cap ex. Any advice would be much appreciated! Thanks

I’m assuming your question is related to the first step of funding your next deal...? If so, begin working with local banks to determine who best to refi- cash out on your current property to fund the down payment and rehab of your next property. BRRR.

It’s possible, but You’ll need to find a bank willing to take a weak 3rd position though and you’ll be sure to pay for that via higher rate. You’ll also pay for 2 appraisals and then sets of fees. What’s your logic behind 2 helocs?

Kim Durst Try to look for some comparisons/ current market rate in your neighborhood. If none exhort, look for “Efficiency” apartments that offer similar sq footage. Also take into account the condition, other Anne writes you offer and utilities that are included in your price. Be comfortable waiting a bit longer because you are charging slightly higher. I’d much rather have a month or two of vacancy then a year worth of headaches from someone sharing a wall with my family. Screen them extensively and be very selective. Good luck!!