All Forum Posts by: Russ Draper

You didn't tell us your end goal, if you want cashflow I would go with MFR, if you want to be able to cash out for more later go with SFR.

If you're going to give money away please send some to me!  I would offer a number that makes sense, not what they want to get for it.  I think they know they can't sell it for $100k so they are trying to unload it to a sucker (you). This might only be worth $65k to meet a 2% rule.

If they aren't doing the work, why are they getting to share in the higher sale price?  Will they share in the loss if it doesn't sell for as much as expected?  I would only pay them a percentage, or treat it as hard money.

I would presume that everything you can't see is junk.  So in this case I would expect to have to rehab the entire building, or knock it down and build something new.  You can make an offer and make all sorts of "outs" for yourself if you don't like the inside.  Bring a good contractor with you when you go through it.

@Cara Lonsdale so you are saying you keep the best deals you find for yourself, and pass the 2nd best deals onto the investors.  You are an investor with a RE license, not a Realtor that works with investors.  You sorta proved my point above...

I don't doubt you help newbie investors, but they aren't really experienced.  I wouldn't expect to learn investing from a RE agent!

I would just evict the tenant, saying that their income hasn't come to you.  They will make a stink to Section 8, and hopefully put more pressure on them.   If you filled out the paperwork its not your problem that they sent money to the wrong location, you followed the rules.  To me its just a non-paying renter, the circumstances don't really matter.

Wouldn't the refi or heloc rate be far less than hard money rates?  I would use the "cheapest" source of money available!

By leveraging more money you can purchase more properties and get higher passive income.

The home inspection is for your benefit, unless you've seen hundreds of properties and various problems and know how much it costs to fix them, I would pay for the home inspection!

Many RE agents that are good at finding deals soon figure out that they can find them for themselves!  Most RE agents aren't investors and don't have the mindset, they just want to close as many properties as possible to get the most commission.  My opinion.

How much history does your LLC have? If this is a new LLC, the lender will likely want either a personal guarantee or just won't do it in the name of the LLC. Unless you go with hard money lenders, in which case you'll need to have more "skin in the game" (money).