All Forum Posts by: Jack Bobeck

@Jeff Gomes Welcome, work on setting up some goals for your real estate business. Then hold yourself accountable for them. It helps to look back on all you will learn over the time and get you ready for your first deals. Best of luck to you! 

@Ron T. My leases all state that the tenant pays the first $50 of any appliance repair. Maybe add that to future leases. Get an appliance repair person to come out, some do it for $40 or less. See if it is a motor issue, maybe you can get a replacement on Craigslist or Facebook Swip/swap groups. 

If you have any garbage disposals, take them out, they are worth more problems than the nicety. 

@Maugno M. I stayed on them every couple of days, asking if they needed anything from me. So that helps. I am sure that your deal is not the only one they are working on. ya know? Be nice, cordial, and hopefully it all works out sooner rather than later. 

@Josh Stack I am more familiar with Rental Do's and Don'ts. If a property is not cash flowing now, it might never cash flow. Don't assume that rents will always go up and eventually cover the payment on it. Build reserves, make sure you plan on 10 months of payments, 1 month for taxes and insurance and 1 month for repairs. 

You make money when you buy, don't overpay for something and think that adding a "do-dad" because you would want that if you lived there, is worth it to your renter. Buy as-is/where-is and make sure the deal pays for itself in rent to cover the expenses. 

We lost 5 properties to a Vulcher Capital group who bought properties at pennies on the dollar from a bank, then turned around and enforced the agreements because I used to have 2 doctors with me and the VCs saw $$$. Never partner with people if you can avoid it. But we still have 5, 2 rentals and 3 lease to own. 

@Angela Jossy Wow, good for you! You know what you want and are working to get there. With all you do and the people you meet, is there anyone that could act as a Private Money Lender? Someone who is willing to take a 2nd position on a property? Its asking a lot for someone, but that would be the fastest way I could see you getting into a property, this year. 

I am glad you know what you want and have a roadmap of how to get there. Keep looking at finance options. There may be a duplex, tri or quad where the owner wants out and you could take over payments and live there for a time, build some equity and then do a refi on your own. You never know what people are willing to do, until you ask. Best of luck to you in your search! 

@Maugno M. Use the title company Auction recommends. It will go a lot smoother. You can get your own title insurance and should, but with Auction you are buying the property as-is/where-is. So get a title search done by your local agent to see if there are any liens, so you are prepared. The Auction closer/title company took 3-4 weeks for me to get closed, but it was not too bad. 

Focus on the heckuva deal you are getting and your plans once you have the keys. 

Best way to get started is to look at properties that have recently sold that are Multi Family or Student Housing. Get an idea of rents and costs, as you prepare for next year. Its good practice to get you ready for when you can pull the trigger and do a deal. Who knows, you might change your mind too. 

@Tj Stirling They own it, they had an inspection, sorry, but you have moved on. 

Yes @Pat Jackson I have spoken with their people on the phone, I am going into a branch tomorrow. They offer both the HELOC and the Home Equity Line. I dont want the HEL, as its like a non-recourse loan and I am on the hook for the term of the loan. I'd rather pull equity bucks and put them back when we do the BRRRR. The monthly payment is interest only at 4.49%. I will keep you posted.

@Jennifer Kusek See if you can get a list of properties in a zip code from a Realtor. I would focus on 3 BR 2 BA homes as they take just as much work as 2/1 or multifamily. Then cull the list and remove the owners who live on the property, there is usually a field that shows the owner. Market direct to non-owner occupied homes. These people may be tired of their properties. Its a great list to build. You can grow your list by adding more zip codes and build a relationship with the Realtor. 

I operate a Dog service business, good cash flow, on the side and I always ask people for feedback, we only get 10% of those emailed to respond to us. I would send a postcard, but turn it on the side so that they have to spend an extra 2-3 seconds to read it. Get creative with cards and mailers. Few people get a personalized card anymore. For those properties that are really special, you might write the card by hand, maybe buy a roll of lottery scratch off tickets and put one or two in there. Gimmicky - Yes, but it separates you from others.