All Forum Posts by: Patricia Steiner

Let's start here:  what is the market value of the property - based on comparable sales?  What is the list price?

A foreign investor is not different than a domestic one; they're both investors.  You need to make the case based on market valuation and then what is needed to close.  Many buyers will offer full list price when asking for a concession.  The seller has no obligation to accommodate that request.  

If you need the concession, write the offer with it. If you're the buyer and you're getting a commission as well, good luck with that...and expect pushback.  

If you don't need the concession, don't put one in.  Most sellers at this price point expect buyers to be able to pay their own closing costs.  I know I do.

I think you're making it more difficult than it needs to be.  Fingers crossed on making the deal...

Have you heard the #1, #2, and #3 rules of real estate:  LOCATION, LOCATION, LOCATION.

Bolt!

What are you trying to accomplish?

If you sell it, how do employ the proceeds from the sale?  What is the net to you after the closing costs?  

If you retain the property, what is the annual property value increase in that market?  Are you renting it for the full market rent price?  Is there any upside on rent price if you were to do some modest renovating?

I feel strongly that you should plan your exit strategy BEFORE you buy a property...it doesn't mean that you need to actually exit per the plan but to know how the property fits into your overall investment strategy and how to redeploy proceeds to continue to grow 'your empire' - and build wealth.  If you're not building wealth, it's not worth doing.

Hope this helps...

LEARN.  And, then LEARN more.  

It's hard to overcome stupid so prepare yourself to actually KNOW real estate and all the different opportunities this industry affords.  While you referenced several traditional routes, there are so many more and many of those businesses are making far more than realtors/investors by supporting that population.  

Rock on - but don't wish 17 away! 

Congrats on becoming a college graduate!  Major accomplishment.  As far as investing with a friend, I know a lot of great relationships that crashed and burned as a result of having gone into business together.  Having shared that, my extended family acquired its 'empire' (as I like to refer to it) by forming partnerships with friends and family; it is an alliance that has been maintained and valued for decades.  Call it 'winning with friends.'  The difference between the two outcomes comes down to just a few factors:

1.  Roles. You can't both be 'in charge' - nor can/should you both have the same focus and function.  By defining who is responsible for what, staying accountable for that function, and staying in one's lane is critical to valuing the contribution of each partner.  And, you probably have heard of 'the silent partner'...it's amazing how audible those silent folks can be - downright obnoxiously so.  I have come to believe that unless you want someone just to sit as judge and jury, it's best to define and set specific roles.

2.  Monetary Contribution.  Having skin in the game makes the game real - and equal contribution makes for good partners.  If you comp someone or one contributes more than the other, it sets a hierarchy whether intended or not.

3.  Formal Meetings.  You may speak every day, you may see each other every day but it's not the same as having a formal meeting with defined objectives and devoting the time to the management of the investment/business - and nothing more.

Please know that despite how investing is pitched often times on BP and other forums - real estate is a tough and complex business.  The worst thing you can do is leap in before you really know it.  I encourage you to build your resource network first (an investor focused/knowledgeable realtor, contractors/trades, lenders, attorney/CPA) and have a business plan.  Again, it's a business - that just happens to involve an investment in real estate as well.

Hope this helps.  And, congrats again.

Best.

Noooooo.  You don't need to agree or disagree.  It's business.  You're not paying him equity.  You're buying the property.  How much is it worth?  What are the comparable sales in the last month within a one mile radius?  Your offer will be based on valuation - not his loan balance.  

What you are thinking/wanting is needed when you are assuming a mortgage.  If you are obtaining financing from the seller, his mortgage is NOT your mortgage.  He has his financing in place and it is his alone.  You are acquiring yours from the seller - not his mortgage.

So, maybe it's not so much that you want seller financing as you want to take over and assume his mortgage.  These are two different things.  The mortgage may not be assumable so that is something that would have to be considered before even having that as an option.  

I'm so glad you posted -and I'm glad you're about to be a homeowner.  You gotta get this right.  I've heard horror stories about these transactions where buyers end up with nothing so don't agree or disagree - KNOW.

Best...

Bolt.  Don't do it.  Never. Ever.  

Totally agree with the wise counsel of @Greg Scott.

My recommendation is to get ready.  What are market rents based on possible renovations? The last thing you should do is over-improve so use this time to get the exterior in stellar condition, prepare a scope of work, determine tenant lease end dates and decide whether not to renew (and lose the cash flow) in order to renovate or whether you can do more modest upgrades while retaining those tenants.

Congrats on your acquisition.  Keep the cash flowing...

It doesn't sound like they're being difficult as much as you want to do something that isn't in keeping with the contract.  If your inspection period has ended, done.  They do NOT and really should not allow you to re-enter the property until the final walk just prior to closing.  And, they don't want to disturb the tenant for something that is not contractually required - as you may not close and the seller isn't risking the loss of a tenant for cause.  

The inspection period is the time you bring your contractors and inspectors in.  Once it's over, it's over - and you cannot revisit the property, not inspect further, and you've lost any contingency protection that comes with inspection findings.

Bottom line:  Have your contractors at the property one hour after your closing time.  When you leave the closing, call them from the parking lot to get to work.  That how you do it immediately.  

Congrats on your acquisition.  Get to closing and then rock on.

First, know the code.  It's posted online under Construction Services for the municipality.  What you don't know - like the dumpster thing - not only gets you red tagged but guess what else?  Placed on the radar.  That code enforcement guy - he'll be back.  He knows you're rehabbing...

Second, don't tick off the neighbors.  Make sure that your property is pristine on the exterior - no trash, no parking on the grass, no foul language, no 'guys' just hanging, and no dang dumpster.  Know why?  It's not who you see but who sees you...and once the neighbors see you and you have offended them, you're on the radar - yet again.  They'll keep reporting you and reporting you and reporting you.  And, that leads you to being the favorite target of code enforcement.  See how this works.

Permit, don't permit...a little story to tell you.  I had a client who decided not to pull a permit to rewire a MF property to avoid the $40k cost.  No, why do that when you can hire an active meth user who has never held an electrician's license to do it for $8k?  Even if you can forget that if the place burns down with tenants in it, you - yes, you - as the owner - are going to prison for a lifetime - yeah, let that go.  Consider the work ethic of a drug user...they come, they go.  What price can you put on your job being held hostage by a guy you can't find.  Can't permit it once it's started - no one will touch it.  Get another guy into finish it - not going to find that fool.  Sometimes what you think is saving you money is actually costing you a whole lot more than if you had done it right the first time.

Reputation.  Be the real deal.  Those who want 'to appear to be' are only fooling themselves. 

And, don't forget - you were outed by a dumpster.