All Forum Posts by: Mindy Jensen

#AskBP

I would love to hear about mistakes. I learn from others' and unfortunately have my own to tell. I would love to hear about the biggest goofs that the more experienced investors (J. Scott, Ben Leybovich, Brandon Turner, etc.) have made. Did you see it coming and look the other way? Did it sneak up on you? Should you have known better?

I quintuple the buying from wholesalers comment.

And of course, what color is your dog?

I would love to attend, but Mondays don't work well. Are they always on Monday? I am excited about the Cheyenne market...

I have heard this a lot. I have never heard anyone say "I wish I wouldn't have checked their background." The horror stories I read/hear are almost always from people who DIDN'T do the background check. It is your investment, why wouldn't you want to protect it as much as possible?

I think you are fortunate to not have come up against a "professional tenant" or an accomplished liar. I wish you luck with your rentals, if you aren't screening, you are going to need it.

Do you own the property outright? It is a much easier proposition if you do. You simply act as the bank issuing the mortgage, and they make their payments to you. You collect the principal and interest on the property, and if they stop making payments, you have the right to foreclose, just like a bank. A real estate attorney should set up the mortgage for you and work out all the details. You can only charge up to 12% interest on a first mortgage in the state of VT, and 18% for a second.

If you have a mortgage, you can still offer seller financing, but you have to make sure to structure the agreement where they pay you, because you will still be responsible for your payment to the bank, and you want to make sure that payment is made or your bank will foreclose on you. Mortgages have a due on sale clause, that ensures the balance is paid off when the property is sold. And if the mortgage issuer discovers the home has been "sold", they may accelerate their loan and demand repayment.

If you have a mortgage, offer seller financing, and they stop payments, you now find yourself in quite a pickle. The buyer can earn equitable title ownership rights and it can be difficult to evict or foreclose when this happens.

I am not an attorney, nor do I play one on TV. This isn't legal advice. Just information to consider... Good luck.

@Joshua Dorkin You need to read this. This says exactly what I believe so many people feel about BP.

@Bill Manassero I'm glad you got the help you needed and your real estate experience didn't turn sour. I have friends who will never invest in real estate again because of their first horrible experience. In their case, the heroin dealer was their best tenant... Oh the stories they could tell.

In my experience, an oven/cooktop combination is going to be less expensive than a separate cooktop and oven. If you already have an oven, then $300 is a pretty good price. But if you have to buy both, look for the combination.

@Sarmed Yokhana I wrote a post for the Bigger Pockets blog late last year detailing all my expenses associated with obtaining my license and working as an agent in Colorado. Your costs won't be the exact same, but they should be similar...

http://www.biggerpockets.com/renewsblog/2014/12/03/real-estate-license-benefits-costs-investors/

I am an agent now, but have sold FSBO prior to licensing. I advertised on Craigslist (this was back in the early days of Craigslist) and in the newspapers. I had a sign in front of my house.

When none of that worked, I found a real estate agent who would list my property for a flat fee on the MLS. I offered a buyer's agent commission, didn't have to pay for the listing agents commission, and put a lockbox on my house. When the agents called to schedule a showing, I gave them the code and left.

Most people feel uncomfortable with the seller is in the house. They don't feel they can discuss the home honestly, and they don't spend much time there. I would recommend you leave the property whenever an agent is showing it.

When you have a direct buyer with no agent representation, I would take them on a very brief tour, then tell them you are stepping outside so they can walk around by themselves and really check it out. You'll be in the backyard if they have any questions. 

I am a firm believer in signs around the house to point out things that may be missed. Heated floors, USB outlets, special features in the kitchen? Your showing flyer should have pictures of the house on the front and a list of features on the back. But you could make a list of features for each room and post that in the house. That kind of gives the tour for you. You could put them into an inexpensive frame so that they don't walk away, or affix them to the wall. 

If you are selling rehabs, make sure to point out everything you did that may not be so obvious, like electric and plumbing.

It may seem like the smart move to not have an agent, and like I said, I have sold FSBO twice before. They take a lot longer to sell and you don't really save that much in the long run with your holding costs. Commissions are not set in stone.

Good luck. 

Not that I would know, but the grow operation has a definite aroma... Think skunk.

Happy Birthday @Joshua Dorkin I hope your day is awesome!