All Forum Posts by: Ray Johnson

@Cathey Bayless You don't have to wait to get your offer accepted to get financials. Have your agent let them know you're very interested in the property and offer a NDA in order to obtain the necessary information to analyze the property for purchase.

@Christine F Baptiste you didn't list the most important part of your question, What is the property is worth? What the defaulted loan balance is, or what the original loan amount was for is irrelevant in your scenario. Start with what the property is actually worth then go from there on your negotiations.

@Joe Fairless I think the need to diversify will depend on the market and submarket. If a majority of your properties are in Uptown Dallas versus the older areas of downtown Dallas I don't think your company has a need for diversification. Congratulations on the successful business!

@Cole McKeon There are many reasons why what appears to be a simple question on paper may not be so clear cut. A cash flowing property on paper doesn't mean it's always cash flowing. In my opinion it depends on where the property is located. A 4-plex in Class C or D area (Compton, Watts, North Long Beach, etc.) will have a higher cost due to common late or no rent payments, evictions, etc. Tenants in this rental product class also tend to place more wear and tear on the property so every time a tenant leaves the expense to get the unit rent ready is typically higher than average. Cash flow of $1,000 a month for a 4-plex is pretty slim so it's possible to see how this could end up with the bank.

@Arnie Guida Does the lease have something stating that the tenant can't have a Felony record? If not, the tenant hasn't violated the lease and is in good standing. I'd wait to see how this one plays out instead of trying to evict without cause

@Brandon Hall Hi Brandon, I know builders get tax breaks or incentives to build affordable housing, Are there tax breaks for someone (me) to get if I purchased an Inclusionary Zone Condo from a builder here in DC? I purchased it as my primary residence and lived in it for 20 months, I just rented this month as a restricted income rental. I'm wondering if there are any benefits to owning this income restricted condo.

@Drew Bell @Jay Hinrichs Touched on a topic that will determine how flexible your strategy can be, If there are utilities in place like sewer, electrical, and paved main roads. If you have any or all of the aforementioned items already in place, you're in a better position than most of the guys holding true raw land.

@Curtis Mooneyhan You can invest in other properties without having your primary residence at risk. If you have saved 20% Down or more all you're doing is purchasing a property with a conventional loan and securing the loan with the purchased property, there's no connection to your primary residence. If you decide to go the HELOC route I wouldn't say you're putting your primary residence at risk since you have such a large equity stake, you're simply tying the investments in a passive manner.

@Tomer O. The pricing and returns are what can be found here in the US, Why the desire to make your REI more complicated for similar returns on your money? Are you originally from London and just want to own something in your hometown?

@Hugh L. The rent paying type! I only have properties in major metropolitan areas, Class A, or B+, neighborhoods. I've never thought about their occupation, I just use my set guidelines when screening tenants. DTI ratio must be 33% or higher, minimum credit score of 720, background check, no pets, non smokers, must sign No drugs on the property document (Federal standard so marijuana is out even if legal at the state level). While I don't specifically look for blue or white collar tenants, I've only ever had white collar tenants.