All Forum Posts by: Nuhan Demirkan

It is harder to find deals not only on the MLS but from private sellers as well. As you noticed the price of foreclosures on the MLS are grossly overvalued and they are in no condition to be financed. The only buyer is the cash buyer so why won't the banks unload these homes to investors? I stopped trying to figure that out and increased my marketing. I am having relatively good results so far. My suggestion would be to still keep an eye on the MLS (it is not dead, you were a bit emotional) but shift your focus to direct marketing. We all have to work a little harder. But the profits are still there...

If there is more than 15% vacancy/delinquency, you are limited on who can purchase your condo based on mortgage availability if you decide to sell.

Andy, you are on the right track. A healthy cash flow is the primary reason why we buy rental homes. A desirable location is also important to keep the properties rented. Current condition is a good criteria not only for the budgetary reasons also the amount of work it would require. You may not want to take on a heavy rehab. I would add one more to your formula - forced appreciation. I usually buy homes for around $125K, put in $25K-$30K in rehab cost, force the ARV to around $250K. This gives me enough equity to do a cash out refi to recover all my cash ($150K) and it will still cash flow. So I can do it again...

Good luck!

It is my understanding that we, as realtors, do not have a responsibility to the general public until they hire/retain us for our services. When they are our clients or customers that's when the responsibility starts. I disclose to the seller that "I have a license and I am not representing them but me. If they desire they should retain a realtor or counsel. And I intend to profit from this deal to which they will have no claims against". The contract they sign is assignable. The explanation is "sometimes one of my investor colleagues will choose to pay me a portion of their profit up front if I assign this deal to them...."

Thanks Frank, did you convert fixed rate mortgages or consolidated the portfolio loans? Also, did you refi under a company name which would allow more fixed rate government secured mortgages?

Hello,

I have been wrestling with this question for a while and I'm hoping you would be able ease my anguish. My three sons, my wife and I have a partnership that owns 15 rental SFH's. The cash flow is good and we have decent equity. I want to scale our business to be able to support the entire family and trying to figure out how to fund the additional rentals. We've used fixed mortgages, private money, seller financing and portfolio loans. I prefer debt financing over equity financing. Has anyone been able to grow their business by just using loans? If so what was the source and how did you structure them?

I appreciate your feedback.

Congratulations Mark. You've already done the hardest part - pulling the trigger on the deal. I'll tell you why you did not go turnkey - Forced Appreciation! Now you not only take advantage of the cash flow but you also capture the entire appreciation once the property is fixed up. Real Estate is an IDEAL investment...

I- Income

D- Depreciation

E- Equity

A- Appreciation

L- Leverage

Sounds like you're going to hit on all points.

Good luck...

Try tax records of the deceased or the PR

Jake I use Buildium and very happy with it. I don't use all of its feature, mainly the property/tenant profiles and the general ledger for income statements. Once you get the hang of it it is pretty easy to use.

All good suggestions... I would only add a caution not to lower your qualification standards because of lack of interest. The most important rule of being a landlord is tenant screening and selection. I would suggest that you get a great tenant at a little lower rent than a lousy one at full price.