All Forum Posts by: Miljan Vukovic

Hello all,

I am looking for a real estate agent, who is also an investor, to help me look at a few properties in Joliet that are listed right now. If anyone has any recommendations, they would be much appreciated. 

Thank you,

Mil

Wow--never would have expected to receive so many responses of advice (and so quickly!) Thank you all. 

@Daniel Brown Thanks! I've read David's BRRRR book :)

@Marcus Auerbach Thanks for the detailed explanation. Good context. 

@Theresa Harris Yup--that's the plan! 

@Glidden Rivera 1 to start--working towards 10. I need to learn more about how to structure hard money from friends & family. Does it make sense financially or more so just the hassle of not having to work with bank?

@Doug Smith Makes sense. I'll have to shop around if I go that route. Hopefully, my financial standing and credit score will help the cause. 

As is usually the case, lots of varying opinions and direction :) I guess you never truly learn until you do it on your own. Thanks all. 

@Whitney Hutten Appreciate that! My only concern with buying cash was the time it would take me to save up enough (about another year) to buy the property and fund rehab all cash, but the advice I've been getting is to buy property and fund rehab using loan, with my down payment of $20K+. 

Hoping to have my first house bought by end of January 2020.

@Kevin Sobilo The plan would be to have the first property cash flowing, and use the appraised amount of the property to purchase a second property that also cash flows after rehab. I think we're on the same page, but it's not coming through correctly (at least from my end) via text :) 

@Account Closed Thanks for the feedback! The $30K repair is a max budget for when I am looking for a property. So if it has less that's great for me, I am more so planning for a max of $30k repairs. It may not necessarily be that much.

@Kevin Sobilo Thanks for the feedback! Can you elaborate on what you said here: "one issue I see with your plan is that the rental prices may not justify doing a cash-out refi even if the value of the property has increased." Why would this be important? My understanding is that the bank will give you a loan for the amount that the property is appraised for. How do the monthly rents come in to play there?

I am looking to start in real estate by buying my first rental property. I am hoping to receive some guidance on the following plan:

Currently saving approximately $3,500/month and will be at a total of $22,000 in savings by the end of the year. I am looking to purchase a home with a mortgage in the price range of $55,000-$75,000 with $25,000-$30,000 in repair budget. The home will be renting in the range of $1,100 - $1,300. 

My question is, I am trying to decide if I should consider waiting to save enough so that I can buy the home and pay for the repair in cash, or if I should go the route with the mortgage. 

The future goal would be to refinance on the home and use the refinance loan to purchase a second and so on. 

If anyone has any experience in the above, it would be great to connect.

When looking at tax delinquent properties, does it make sense to cold call property owners who have taxes 6+ months overdue between$10k - $25K, but have brand new (last 2-4 years) homes with highend modern finishes? My thinking is that, even though these people have high overdue taxes, they probably have the money to cover these taxes eventually and won't be looking to sell a new/updated property. Additionally, will cash buyers be available for houses of $750 - $1.2mil purchases? I'm wondering if I should stick to/focus my time on more traditional "distressed" homes (not modern, need repairs), instead of tax delinquent, modern, updated homes. Thoughts? Let me know in comments if more detail/context is needed to this question.

Note, I am trying to structure my time to the best leads (quality vs. quantity) because I work a full-time job, so any better filtering and targeting I can do to create and close more deals the better. 

Thanks!
Mil

I found the same website, but it isn't super helpful. I have yet to go down to the probate office in the loop, but will probably do so tomorrow. I think the strategy here is to look up the probate cases, if they have an attorney in the description, then call that attorney and determine if there is an opportunity to help the deceased homeowner's home be sold. 

@Brie Schmidt

Thanks much for the clarification and help!

I'm probably looking to start smaller than $300,000 for my first job/deal in order to reduce risk and build more solid capital.

Thanks @Jamie Rose @Brie Schmidt @Chris Jensen

Jamie - Appreciate the suggestion! Two follow up questions:

1) Do you feel there is a preference in terms of getting the loan with a bank vs. a real estate broker through a non-bank lender?

2) When you say "stretch that 10k out to around a 275,000 property" Are you referring to selling the property at that $275k amount after using the monthly cash flow to renovate?

Hi Brie!

Yes, I have savings in 401k, but would prefer not to take out of that. Recently landed a higher paying job which is allowing me to be more free with my finances, so this is why I am finally looking to jump into this industry. I have been reading, listening to podcasts, and meeting with realtors the last 2-3 months in prep of landing this new higher paying job. Good to know about the banks needing 3 months mortgage payment in addition to down payment--I was not aware of this.

To be specific, I have about an extra $1,500/month now coming in that previously was not there, so the $10k savings will be able to grow more quickly through my day job than it has been able to in the past. I have no debt to pay off or anything. 

Chris - Thanks for the breakdown and heads up. 

I was under the impression that FHA loan with 203k would cover 100% of the cost for home and renovation and only require a 3.5% - 10% down payment (I have a good credit score, so hoping it would be closer to 3.5%). Closing costs are paid at closing, so I would have time to recoup that during the project and pay it at the end.