All Forum Posts by: Rich S.

@Peter Hanson are you still using the same strategies to find deals? Lots of low cash offers on MLS deals or are you in direct mail or wholesalers bringing them to you?

I confess, I didn't read the entire thread, but for the most part, you will have two schools of thought.  #1- pay down your debt, you can't make money in real estate until you have money and plenty of it-- those folks, more than likely, did it that way... a conservative approach, that served them well and probably because they aren't the riskiest of investors.  #2- The folks that say figure out a way to do it now.... waiting 5 years is too long... they more than likely got started more creatively OR know how much getting started changed their life.  Ultimately, you have to decide.  If I were you and could find a way to get started whether through a partner, creative financing, etc, I would.  If your student loans are a reason to sit out now, and you do, you'll find a reason to sit out later to.  In my opinion the ONLY thing all successful real estate investors have in common... THEY ALL GOT STARTED... and the group of folks that didn't, want to be like them.  I don't think any approach is wrong, except the one that keeps someone from getting started.

@Account Closed In regard to your idea that investors just don't get it, but when the mortgage folks start chiming in, they will...  just doesn't matter.  Investors will start caring when they can't find a lender who will work with them because they didn't use a round number.  I think to an investor, it is like getting excuses from a general contractor of why work can't be done or if they say, "You know, if you did this, it would be easier for me"... but in reality, there is another contractor who will do the same work, who doesn't need the investor to do this or that and for the same price....  and then the contractor saying, "Just wait until all the other contractors start chiming in"... etc... bottom line, even IF it makes it so much easier, the folks you are trying to convince just don't care.  They are too busy solving their problems instead of trying to fix yours.  Like I said, you may have a point, that it is more work and leads to more issues, but the bottom line is, that is YOUR job to fix, not the investors/buyers/whomever... 

@Account Closed how about the lender provides a credit to a rounder number?  And the change in contract is MORE WORK for those parties, but that is ok, because it makes life easier for the lender, right?  I'm not going to lie, I always want my life to be easier, but you are asking others to change when there is no direct reason to, since they can get what they want without changing.  If a lender can't handle the digits, I think there is more of an issue with the lender and process than anything else.

@Account Closed  The issue here is you want someone to make your life easier, but there is no competitive advantage for them to do so.  If the federal government came out with a policy that all real estate must be purchased with round numbers, that would be your only way to get this point across.  You might have a point, but it is easily snuffed out with "you want it to be easier" when the service you think you are providing investors with a smooth transaction, by purchase prices with round numbers,  can be done by thousands of lenders no matter what the digits are.  I'm sure all the fees and taxes are perfectly round numbers too, right???

@Account Closed  I don't think anyone is here to argue with you that some lenders might agree with your sentiment, but you are TELLING investors how to do business because it HELPS YOU..... what can you do for the investor to HELP THEM?  This is a competitive arena.... most folks with good mortgage folks don't use others if they don't have to... WHY?- Because that person takes care of them, does business well, etc.... If my lender told me an oddball number was a pain for them.... pretty simple fix, I'd find another lender.  Again, I don't operate in the lending/mortgage space, so can't speak to if your gripe is valid or not, but the borrower is your customer... don't like it, find another customer.  

A lot of the advice you are getting is for folks just trying to protect you and do your part.  Ultimately, the decision is yours.  You have to run the numbers, you have to do the homework, you have to make the final decision.  The key questions laid out so far:

*How is the area?- seems to be doubts on if it is good or not for investment

*Chicago is tough on landlords-- do you want that to be your first go round in RE?

*Are you prepared to take on a real estate investment?- nobody is every 100% ready, but are you in the comfort zone

*The scenario you lay out sure sounds like a motivated seller, why is he/she so motivated?

The good news:

*Looks like cashflow could be really good, especially with you house hacking your own unit with a roommate.

*If you are considering it, you must be OK with living there.

*If your numbers are correct, from a pure numbers standpoint $2750 in rent on a $134,000 mortgage WHILE living there is pretty solid from a summary of numbers... obviously other items come into play.

Ultimately, do your due diligence and decide and move forward one way or another.   Lots of great resources out there, but ultimately it is up to you. 

It is a personal preference.  I don't care what I drive, so I drive the old Honda Odyssey family vehicle.  My wife very much cares about what she drives and drives a Jeep Cherokee.  The only people to really respond to this thread are people like me, who don't care what they drive.  In my opinion, if you aren't going to run it into the ground, I'd lease, especially if you are like my wife and want to drive something else every 3-4 years.  You don't have to worry about unexpected costs, you get the set it and forget it treatment.  My guess is many of the folks who drive things into the ground also mow their own lawn, shovel their own snow, etc... OR they choose to not do those things, but make their stand with what they drive.  I don't think either is wrong, but I wish I was in the car business because the folks who drive beaters are fewer and fewer everyday.  I'd say the car folks are doing just fine either way!

Property had been on the market for 27 Days... so I assume realtor did his initial push to potential buyers long ago. I’m probably being paranoid, but doesn’t it seem interesting a realtor refers me to a banker who doesn’t respond and then said banker buys the place?

I recently came across a potential property in a market I haven’t explored before. Ran some numbers, took a look, cane to find out an investor has purchased 11 homes from an owner who passed away and was selling off a few less desirable for cash to rehab the others. Anywho, since it’s outside my area I ask the realtor if he has any local bank recommendations.... gives me a name, president is a good buddy of his, handles the loans like this from start to finish...I reach out on Monday. Don’t hear back, reach out Thursday for one last try, nothing.... find out this AM that an offer was accepted last night... realtor slips up and tells me his banker buddy bought it!! Just curious if it’s typical to have this happen. It’s a small community, less than 5,000, so I assume that makes a big difference, but makes me wonder how much I should share with a lender going forward!