All Forum Posts by: Michael Lee

I hit the wrong button again. Sorry.  I would not use a 3 or 5 year note that has a balloon payment due at the end.  I would rather have a 10 or 15 year bot with a 30 year amortization with a balance paid at the end of that note.  3 to 5 years always comes too quick.

There's something about looking at their advantage on paper works.

Hello and I hope you came to the right place to get several answers Natalie!  I would say that to show her all the reasons of recommendations that she gets like total income and spreading out her income over years may that possibly reduce her income  liabilityover several years be attractive enough.

Hello again Andrew!  I did not mention a couple things I want to say now that I have read your letter.  The more units, the better.  Realize that many buyers are retailers willing to pay higher than the price listed. But understand the houses that are in bad shape will have less  I do like people that are willing to move and participate in a  owner-occupant people involved and do a "house hacker" loan with a lower down and have tenants next door.  Having any experience is required to do apartments is a myth.

Most "house hacker loans might have a limitation that is no good, and that it' or that is what I heard, is that you cannot do that in another loan when one is already in place.

Best wishes!

I messed up and hit the wrong button before I finished.  I was going to say who is this guy and what does he know?  I am currently 61 and have many of years of experience in construction management and some in a broker license (actually about 30 years) in the state of Texas.  I'm a college graduate with honors in business that emphasized real estate.  I was born and raised in Dallas, Texas.

If you think i can help you in any way, please contact me through this site because I am on it just about everyday.  There is much I did not tell you about me but I might later.

Good luck to you!

Hello and I like your motivation Andrew!  You should not have trouble finding help in San Diego.  Probably one of the best ways to get someone's attention ix by showing them their benefits on paper and convincing that their investing with you is so much better than the Bank.  You may have to offer them more to get them to help, but that might be worth it at first.  Remember that you are just trying to start and that there are many deals and years left.  Your background may matter.

Even your selected area may matter so choose it carefully.  So might your type of real estate investment.  I do not know what you are proposing to do and whether it is a short term or long term investment.  In this economy short term deals I would recommend Fix and Flip and Quick Flip.  They go well together.  Long term I would suggest apartment complexes (5+ units) with some wholesaling or Fix and Flip.  That would give you both short term and long term investments when considering the last given option.

For short term only, I would suggest Fix and Flip with some Quick Flips which do not involve any repairs or rehab.  It's just a by and sell with no work done.  Those two go together well.  One of the best things about apartment complexes is having multiple units at one address.  I think houses are too risky but if you want to do houses real bad I would suggest a tri-plex or a Quad-plex.  I do not know what exists in San Diego.

Hello and your question is worth addressing Cayce! I would say that apartments are the best way to go with rentals in today's economy.  It depends on how much money you have to invest in real estate?  You may need to raise money.  If you can clear, after any debt price is made, requires about 50 units if you determine making $200 per unit after all payments including the debt payments and property tax, you need about 50 units.  If financing is involved and repairs/rehab is required, Banks will probably not loan to you without experience.  

If financing is required you might want start small and work your way up to about 50 units.  The $200 a month per unit is doable.  Planning on making a net of $100 per unit is more possible but that would take 100 units.  Hiring an experienced Property Management Company should be under your budget of that many units (either one) and include your monthly reporting requirements including financial and occupancy reports that are necessary for you.

One good thing that is to be a

 good thing in that type of investing only requires one address.  There is less competition in this type of investment which is more dependent on the income versus comparables which are usually more retail as your competition is.  It also uses the capital rate that makes you more value per the buck spent because of the cap rate, typically. Ideally you need a 6 to 8 cap rate that is used in your selected area. 

You also need several factors that will change it's value, like amenities, location, near a good business highway access,  a good school district, good first impression, a good public transportation stop, parking, frontage road access, etc..  You also want good demand for that area and see what the other apartments in your area are doing to be more competitive and their current rents per unit type which will also tell you the best unit type existence.

I would also want to know that area's other retail facilities that are nearby and pose any problem with your planning.  I would also look to see if there is anyway to increase your prospects by proving nicer exterior improvements like paint and landscaping that could improve a prospect's first impression.

If there is anything else you think I might present to you, please contact me through this site because I am on it just about everyday. Why should I pay attention to him anyway?  Well I' m currently 61 and have much work in construction management and a fair experience in real estate.  I graduated from college with honors in business that emphasized real estate.  I was born and raised in Dallas, Texas.

Good luck to you!

Hello again Christophe!  I would suggest that you talk to all owners personally and have a positive excuse each time to help them remember you.  Be distant but firm on your responsibilities and intent to be a purchaser.  Always continue your education and keep current on what's going on in your area or your subject area, or both.  Take care and continue being brave.  Best wishes!

Hello and thank you for your question Elaine!  When buying land there might be some restrictions that prevent you from doing what you are planning that may not be obviously seen.  I would suggest that you hire an experienced Attorney or a professional consultant that has experience with land restrictions in that area.  I would also talk to an long time experienced building inspector in that area that maybe aware of any restrictions or building issues that he may know about in doing what you want to do there.

Make sure you understand any or all investment conditions put into writing as well as any obligations that are financial or monetarily involved.  Usually experienced and paid professionals are worth what they charge to give you that peace of mind on anything put in writing.

Good luck to you!

Hello and I'm glad to see you here asking this question Mike!  I would suggest right up front that you need to hire an Attorney, CPA, or Business Consultant that has experience on similar "problems".  With that being said,  I just read a book about buying and selling apartment complexes and one of the things discussed by the Author was business partnerships.  He suggested a Partnership called "Tenants in Common" as a way that you keep control no matter what you contribute on a property's price and have different agreements with all Partners regardless of their percentage of their contribution of the purchase price.

Whatever you do just be careful, understand it, and feel good about the Partnership or anything put in writing that's a business liability of your personal involvement or responsibility whether it's monetary or not.

Good luck to you!

Hello and welcome to the Forum Taylor! Even though you have a decent dollar amount it won't matter with most Banks. They might do it at 80% but I would not guarantee it. Your amount may not consider all the closing costs or fees charged. No, its not a good way to start but it is a way if you can convince a bank, especially a local one. It might be easier to get a HELOC loan or a credit card with a special rate for opening a new account but you must be disciplined and pay it down quickly.

Where did you get the current home value?  Are they reliable?  There are not any pros I can think of.  If you find a good deal try a hard money lender.  There is always a way you might get owner financing but it might take some creativity to make both sides happy.  Like them 2 loans that includes a down payment amount they need.  No one knows what the future holds.

Good luck to you!