All Forum Posts by: Rick Albert

Being a resource is really what First Time Home Buyers need. They need handholding while feeling empowered to make decisions. 

Provide value to your SOI and they will come. 

Also as a new agent you NEED to get your systems down now. It is extremely difficult being a Buyer's Agent. In one day I drove between three counties to show properties to clients. I had to have my wife drive so I can work on my laptop. There is a lot of time wasted with buyers so make sure you understand their goals, timeline, and make sure they are actually ready to move and not window shop.

What's the point in asking now? So much can change. 

I would ask come October/November. That will likely be a more accurate time.

It sounds like you are a planner, which is why you are wanting to ask so far in advanced. I get it. But in real estate there are a lot of random variables that happen throughout the process so get prepared to roll with the punches.

This is a tough one because even though their name isn't on it, if something goes south, are you going to go after them?

Just so you have a frame of reference the cost of a 1031 Exchange is typically around $1,200. Not a lot of money.

It is all about the transfer of the net proceeds and any outstanding loans. As long as it is the same or higher, typically you are fine. But this is why you hire someone that is experienced rather than a friend. That goes for any profession in any industry.

What might be interesting is if only ONE of you gets the VA loan, but both can be on title. This way you can buy the second property using your brother's VA loan. I'm not sure how this could be structured so speak with a lender but on the surface that would be great if you could get two properties with zero down.

You can make money in almost any market. You just need to learn and understand it. Right now you are going to get a lot of real estate agents saying their market is best.

Columbus has been on many lists for places to invest. My concern with these "top lists" is that the data is based on past events, which basically means old news and you may have missed the boat.

With that said, I would actually focus on your own backyard and house hack if you can. This allows you to put less money down, you need a place to live anyways, and the interest rates and fees tend to be better than for investors.

There are certainly pros and cons and will come down to your personal goals.

Pro: Because it is two properties on a lot, that is one insurance, one property tax bill, one gardener, etc. That makes managing things easier.

Con: You aren't getting dollar for dollar value back and if you use that money to buy another property, now you have two appreciating properties. From a leverage perspective, with $300K you can buy a $1M asset. Between appreciation, loan buy down, and cash flow, you may exceed that $3,500 in cash flow. 

You do win in either scenario so it really is a preference. For me, I'm focusing my investing right now on doors. Vacancies are a killer so having more doors allows for some diversification (having one vacancy in a fourplex is 25% vacancy versus a SFR vacant and that's 100% vacancy).

Clearly it is important enough for you to bring it up in the forums, it would be important enough for another buyer. You have more risk not disclosing.

I'm not an attorney, but generally it is all about what is considered a material fact. I haven't seen Florida disclosures but in CA there are sections asking about foundation. Plus if you don't address it and you sell later on, it isn't like the foundation is going to fix itself, it is only going to get worse.

Once it is fixed, you may have to disclose it but you have invoices showing that it has all been taken care of.

If in fact it is only $6,670, as mentioned, it isn't for us to tell you what to do. If it were me I would ask for a credit and get the work done and move on. I wouldn't let it linger. 

If you are only going to represent yourself, then you have to go with the lowest cost brokerage since many provide benefits such as marketing, etc. The other thing to keep in mind is they are expecting you to sell. We aren't in the business of selling homes, we are in the business of client acquisition. If you aren't doing that, then some of the big box companies may not want to work with you unless you can do a ton of volume on your own (which I hope you do because otherwise it isn't worth getting your license).

I would be upfront with the brokerages on what you plan on doing. 

It all depends on your goals.

I house hacked a condo, did a HELOC and FHA 203(k) to house hack the second one. I then kept the condo rented for four years and then sold it and did a 1031 Exchange to properties out of state.

I would house hack and reevaluate. If you are okay with the lifestyle, do it again. It is one active FHA loan per borrower so you would have to refi out.

It is always going to be case by case.

You have to honor the lease that is in place when you buy. Anything outside of that is a renegotiation and the tenant doesn't have to do anything about it. 

Once the lease is up, it will be dependent on your local laws. It is important you brush up on it. 

To be honest, unless your area has super relaxed laws, I would either negotiate the unit to be vacant prior to acceptance or just skip it altogether. Generally, lender guidelines say that you have to move in within 60 days.