All Forum Posts by: Robert Leonard

@Taylor Jennings sorry man, but your terminology in each mention of scenario #2 is confusing as all hell? Selling a note ... creating a note ... 70% LTV ... 30% LTV ... ?

I'm good with the numbers on analyzing deals and I cannot figure out your numbers?  You are using all of the terms in an unorthodox way that does not allow me to analyze your numbers.

Putting your terms (cap rate, equity, LTV, etc.) aside, but just using a $16k one time fully taxable pay day (flip) vs a $10k non-taxable event of taking out a mortgage with $138/mo of positive cash flow is a near "no brainer" as I see it. My only concern is whether or not that 48k property is likely to appreciate or is in an area declining in value? That's just below the 50k threshold of what's easily financeable for the benefit of plan B (to sell at retail if necessary).

Hey Ian,

I think you've done everything expected of you as an agent and the seller clearly stated they don't want to work with an agent.  Presumably to avoid the added expense of commissions.  You've done as much as could possibly be considered reasonable to allow your broker a share of the transaction by offering the 1 time listing.

Now, you disclosed your agent status and you found the lead based on your own initiative, that's an important factor.  They didn't find you as a result of your broker's advertising or other marketing efforts.  You have no agency (agent/client) relationship with the seller and you are free to interact with the seller as an investor with no compensation owed to your broker.  I think it's pretty clear.

I would not do the agent posing as buyer scenario.  I would just go back to her and put the property under contract, disclose the wholesale plan and do the double close.  Do the deal!

@Alexis Zion you need a BP member from Wisconsin to help you with that. 

In general, your offer needs to be all about why the seller wants to seller finance the property to you.  Focus on the specifics of how the seller benefits from seller financing.

I suggest another post with a title like "Do you have Seller Financing Experience in Wisconsin?"  Maybe take of the "ing" and use "Seller Finance?" Think of what a BP member who has the experience you are looking for might have as their keyword alerts to get their attention to your post.

@Christopher Thomas don't underestimate the value of free!

You can pick up apartment guides, your Sunday paper (or whatever day the weekly real estate section is added to your local paper) or a ton of websites that tell you the prices of houses.  Yes, those are all "asking prices," but they are in the ball park (there are always exceptions) of what the properties should sell for.  This is part of studying your market.  Before long, you will begin to see a high or low price for different areas as you get to know your market better.  It only comes with studying the market over time.  All of this information is paid for by those marketing the properties and advertisers, but it's free to you!

Welcome to BP @Jack Harris !

To answer @Arlan Potter's question, an agent's license is what's required by LA law to manage others' property in LA. 

You should clarify with your broker how they expect you to do business.  They may want you to do it through them using their contracts and also their commission split?  It's important to answer those questions first.

Welcome to BP @Steve Himel!

It is a great place to learn and network.  We should grab lunch or a coffee some time to talk strategy.  I'll be glad to help you and discuss our market.

See you around BP and around town soon!

Welcome to BP @Patrick Fitzgerald !  This is a great place to learn and network!  I always recommend "The Ring" (Real Estate Investors' Networking Group, found on meetup.com) coordinated by @Richard McCray, to anyone around the Baton Rouge area.  We meet on the 2nd Tuesday of every month and it's only $5 per meeting you attend.  You can meet a lot of active investors in the area and learn a little bit while there. Richard does a good job of scheduling speakers who bring good information that is helpful to investors.

See you around BP and hopefully at one of The RING meetings!

@Paul Cox I think @Account Closed is spot on with her concern about a vacancy 3 months from now - you don't want it.  The Spring and Summer are typically the best times for turnover because of the fact that it causes less disruption of school situations for families if they move when school is out.  After Thanksgiving, people are spending money on the holidays and holiday travel and budgets get tight on big ticket items like moving.  Even companies move their people less during the holidays.  

I had a vacancy last December and I can't tell you how many times I heard people say, I'm moving for my job in January.  I actually had a similar offer and I would have taken it given the low demand, but people who live in a 3000 sq ft house think 1600 sq ft is a match box.

I would only take it now if they guaranteed 6 months at the higher rate.  It would have to add up to more than I would make for 9 months at your normal rent to make it acceptable.

@Ve'Ron Hall I wish somebody would do what you're talking about just North of LSU, but that's another subject and I'll have to start another thread to have that discussion.  :-)

Lots of people who want to become rental owners mention the demand for housing around colleges as great a great way to make a lot of money, but as a landlord, I'm always thinking 'I want long term tenants, who move in and stay for a long time.' Well that's never going to happen with college kids.  I'm sure those who actually use the strategy will chime in with their case for what's good about it.  I just want to make a case for low turnover, low maintenance tenants and steady cash flow away from the college campuses.

If you want to pursue those properties, I would follow Curt's advice and find an investor or several of them to partner with.  If the potential is there, they will see it and you may just be the catalyst to get it started.  The first ones in take the biggest risk, but if it turns around, you will have the greatest rewards!  I hope you find a way to make it work!

Welcome to BP @Cynthia Seitz !  It's a great place to learn and network with other investors.  Feel free to give me a call, PM or email any time you have Louisiana specific questions.