All Forum Posts by: Cheryl C.

Vincent, I don't believe we are seeing the "artificial demand" that (I believe) caused the housing bubble. Things are very crazy right now in Northern Virginia but at least the buyer's are "real". During 2003-2006 investors were contracting for new homes/units with the sole intention of flipping them; hence, the demand was not real and the market distorted.. I really don't know why there is such limited inventory in the lower-end. Pent-up demand, increasing rents, cheap financing, lack of new build? It is a little alarming to me to see the bidding wars.

One thing that I have done in the past couple of years is to contact the listers' of shorts that are under contract to ask if the deal looks shakey. I ask them to keep my contact info in case something goes south. I've gotten about 4 deals this way. I am also considering venturing out to the Court House again.

Please excuse spelling - I can't read the font on my messed-up laptop. It's tiny!

Me too Ann. I need to see it, touch it, comp it, etc. My $$$ and me are quite attached. I can't imagine that anyone needing me as a partner knows more than I do. I don't need any partner. And there is no way on God's green earth that I'm putting money into anything that I have to fly to.

I used to write in a provision ala J. Scott years ago. Is my area unique in that the board of realtors contract already has this language? I submit my offers cash with POF (in my bank account) and am permitted under the contract language to get financed without any addendum. I was once told that asset managers "don't like that" - but I've never, ever had an issue.

I write and show cash. I actually pay cash for flips, but finance rentals. The standard local Board of Realtors Contract stipulates that the buyer can change the financing terms provided there is no delay in closing. A cash offer is stronger and I write my offers cash (I do have cash if I needed to go that direction). My Bank doesn't require an onsite appraisal or viewing. I don't believe an approval letter is anywhere near as strong as showing cash.

Ann, as a HML, would you ever consider a partnership? If so, on what terms? You are coming from the perspective of Shane's prospective partner and, as such, have an inside view. I could see a HML looking at something like this as a way to get some rentals without using too much cash and also getting a high return on the cash in. My concern would be relying on the ability of the investor (Shane).

I'm in a position to be the cash partner, but I'd have a hard time believing that someone that needs my money/credit would do that great a job.

Shane, you could use Dion's scenario #2 as follows:

If your investor has access to credit and dp $$ that you don't have; you could set up a partnership where you find and manage rentals and he provides the downpayment and uses his credit to obtain commercial money. The investor gets a preferred return on his cash down (10%?) and 50%(?) of the appreciation and net cashflow. The investor would have to have a reason to trust in your real estate accumen. You would, obviously, need a detailed partnership agreement.

You could refi later and pay-off his initial cash-in and/or take him out completely (based on a new appraisal).

Thanks for the replys. I am getting 5 yr commercial money at 5.25% with a half a point. It's amortized over 20. I'd really like to get some 15 or 20yr money.

I am with a local Bank. Can I do better with a larger bank? At least the term?

I can't go conventional investor as I have more than 10 mortgaged properties, but I am going to help my son arrange his refi. He only has 2 rentals. This is why I asked about conventional investor money.

Jim, are you going with a large bank?

I'd like to hear what people are being quoted for conventional investor money and also 5, 10, 20 yr commercial money. Thanks!

I thought I would see if anyone has any updates. In my area (Northern VA) I'm seeing low vacancy and strong demand. LL's definitely have pricing power.

George P., I offer slightly under-market rents and tend to get a number of applications. I sift thru them looking for tenants that are likely to stay a number of years. Some of my tenants have been in place over 10 yrs.

J.,
How does one get title insurance when in violation of a Deed Restriction?