All Forum Posts by: Nicholas Morris

Ok Joel I think you answered my question, Its unrealistic to get a solid agent for an out of state investor at a lower price point. I like the going straight to the listing agent. I think I will do that. The only problem I have right now is I dont know what the areas out there are like yet. I have a good idea on rental rates by looking at rental rates on craigslist and looking at what tenant occupied properties say there rents are. I dont think that is as good as someone that lives in the area and can you tell you "that area is going to get lower rent" etc.

So does that mean its going to be hard to get an agent that wants to spend some time on you if youre at that low of a price point?

So I live in CA and I want to buy a couple properties under 50k in the next couple months. Does it seem likes its hard to get a good agent (theyre busy) when you are at a low price point. I conctacted one agent through redfin and the first thing he told me was, if youre not active I wont have time for you. I told him. Id like to get 100k ish total in the next couple months. No response, no return on my phone call. Like wow.

Sorry about that. Yeah i mean Residential. Minimum down payment you can get. Are rates about 1% higher then own occupied? Debt/income? Any other relevant requirements. Ive seen some stuff about maybe having to show 6 months of reserves. Is this the case even if you have the necessary income to pay the mortgage even if the building was empty?

What are they currently?

Hi Wesley, I am a respiratory therapist and know some doctors pretty well including a decent amount of residents. I see a lot of Dr coming out of med school with 300-400k in debt then they do a residency that pays them about 40k/yr for 60+ hours of work for 3-5 years. Some only to make about 250k year. If they had just went to nursing school for 3 years then got out starting around 85-90k and did that for 10 years and lived like a broke college student or broke resident for 60 hours a week. They woulda pulled in 140k+x10. 1.4 mil and probably been able to bank 40%+ of that or 560k not accounting for any investing they did along the way. It is more then feasable to of hit that mark with 1-1.5 mil invested. if that was earning them back 200k-300k a year. They would be significantly better off at the same point of time with instead of 400k debt they have 1.5 mil banked earning money and this does not even include if they continued to work at 100k per year. They could easily be earning 400k+ per year with a ton of money in the bank.

Hey Joel, this is an interesting topic. I think what you get for a 4 year degree at a university does not payoff. I went to a community college for 3 years, that costed me maybe 5k and now I make 80k/yr because of it. You have to know what profession you are going for, what the job market is like, then figure out the cost and see if its worth the cost. I know some people that went to usc for 4 years and make less then $20/hr. Usc cost over 100k for 4 years. I was watching cnn the other day and they were talking about the importance of getting a bachelors. Saying that if you get a bachelors, you will make 600k extra over the next 40 years. Then i thought, well if that bachelors cost me 50k (this would be low for even a state university,) and i invested it a modest 10% for 40 years, I would have almost 2 million. At 12% it would be over 3.5 million. You can see what I am getting at. I always tell people If you goto school, do it as cheap as you can, always do your gen ed at a JC. Know exactly why you are going to school, ie what job you will get and what the job market is like and projected to be like. Do your due diligence, just like any investor would with a property, do it with your education.

I live in Riverside County, the house I live in now I bought for 175k about 6 months ago. It was a hud that needed paint, new ac, blinds and carpets cleaned (5k repairs.) It is worth atleast 225k now. I have been keeping an eye out around morena valley, beaumont and north cathedral city but nothing is cash flowing like the properties can in AZ that I see on the mls.

Hey bruce, as a ca investor, what out of state areas are you investing in?

Hey guys, I got a follow up question. Would you except a higher grm for a property that is newer? Are major expenses generally less on a new property. I am seeing some properties that are 2000 or later that are more expensive but the overall returns with a 20% down are still over 20% (this is using 50% gross rents as expenses) How do you generally view new or newer properties vs old ones?