All Forum Posts by: Nathan Platter

@John Cleare is wholesaling residential and commercial deals out there, would be a great person to connect with.

@Tim Swierczek is a loan officer and may be able to help.

If memory serves correct, the current requirement is 3.5% down (via FHA loan)

Not sure about partnering on an FHA, at least if you're 2 different households.

2% rents most of ten occur in very rough neighborhoods, where property values are rock bottom because few people want to own in that area.

I'd recommend comparing your rent to the market standards. Check out rentometer.com or craigslist and see determine the upper tier rent rates.

Since it's a SF rental, you're most likely breaking even at the 0.9% rule, so be above that or sell the property to get a better operating rental.

Hi Ian,

Welcome to the forums! Your greatest assets at this point are time and energy, so offer those to other investors who have other assets (money, connections,...) and creatively offer ways to trade your asset for one of theirs.

Hi @Anant Garg ,

First and foremost, make sure the financials of the deal work in your favor.

1. Look over any inspections or seller's disclosure documents. That should reveal any known issues with the property.

2. Don't look at properties that you are unable to purchase, whether with or without financing. Make sure your lender will fund your deal before you send any funds to the seller, like earnest money.

3. The costs will be outlined i the purchase agreement, but often (in Minnesota) the agent commissions will be added into the purchase agreement so the buyer doesn't pay anything upfront. For example, a $100k property and buyer's agent is charging 3% ($3,000), the buyer offers to pay the seller $103k and then have the seller pay the agent commissions.

Hi Chad,

Go with the option that best fits your lifestyle and income needs. 

You'll need to provide more details to get massive community input.

Save this link, it's the 2017 Minnesota Statues regarding Landlord laws.

https://www.revisor.mn.gov/statutes/?id=504B

https://www.revisor.mn.gov/statutes/?id=504B.271

It's a little long to post the entire law here in this thread.

Hi John,

There are two schools of thought; OM shows the potential if everything runs perfectly and the T12 (Trailing 12, aka Actual Financials) illustrates how the property has run when the current owner operates the deal.

Offering Memorandums often assume instant rent increases and below-actual expenses. However, it often includes any Capital expenses that may be needed (T12 may have $0 the prior year)

I usually go with the T12 since I don't want to assume I can run the deal any better than the current owner, and add my own expenses to account for the vacancy, capital, and management quotes.

@Michael Bishop has done a few of these 

@Zulf H. ,

If the seller does not have the dimensions of their own property then either,

1. Ask the seller to take measurements, or
2. Ask the realtor to take measurements, or
3. Ask the seller for property access so you can take room measurements.

Any information you may find online stems from a real-life human measuring the rooms (or getting the data from blueprints) but the seller is not aiding in your due diligence.