All Forum Posts by: Ryan Logsdon

I hope you have detailed shots of the interior, every square inch of wall, ceiling, and floor. I'd be afraid their next step will be to damage the property if they still have access.

Just have your agent contact the seller's lender (seller's title holder) to verify in writing that they've requested additional move out fees. That'll hopefully be enough to get the seller back in line.

Thanks Ned Carey.

Hi Stanly Hernandez.

It's great that you're looking for a 2/3/4plex in LA, but get ready for very low returns. LA's a tough market for cashflow.

First, drop any agent who doesn't give you the time of day. There are enough great agents out there, you don't need to waste your day on the bad ones.

Now to address some of your questions,

1a) Evaluate how large your debt-to-income ratio is. What's the interest rate on your current loan, and can you make a higher rate of return by investing rather than paying all of your debt off now? That is, can you use your money (and other people's money!) more effectively? There's no clean and clear answer that works for everyone.

1b) It's not about this being "the time to buy." It's about evaluating an opportunity and seeing if it fits your requirements. Keep that in your mind, and you'll always find a buy when everyone else screams SELL. You'll also see when to walk away from a "deal."

2) Start getting comfortable with mortgage calculators. Build a 2-part loan for yourself. Take a loan out on a hypothetical property, 85% of X-hundred-thousand dollars at the average bank rate (higher rate if your credit's not great), then take a 2ndary loan on the remaining 15%. Play with the numbers, and see what the highest rate is that you can afford for that 2nd loan. See if you can find a private lender advertising that rate or lower. Move it to 90/10, 80/20. See what works, if anything. There's no clear cut answer, but on this one, keep in mind that concessions will need to be made. Say the seller carries your 2nd, what will you give them in return? It's not going to be higher earnest deposit nor a larger down payment.

Mike, have you looked at the going rates for your neighborhood? Make sure the neighborhood can even command the rates that you'll need to go cashflow-positive before entertaining a rehab.

Great job, Trey Pope. Can't wait to read about the 3rd. What areas are you targeting?

I use Fidelity. $360/yr includes AC coverage. $60 house calls.

Thanks a lot, Ali Boone!

Chris Clothier, thanks for taking your time to write such a detailed counter. That's exactly why I joined BP, to meet & share ideas with people like yourself who take real pride in their RE investments and their network!

From Ali Boone

The biggest issue I see with turnkeys is precisely this. Turnkeys are a package deal, and more often than not, pitched to new investors who can't yet gauge their comfort levels. Too often, turnkeys seem to come with such great reassurances.

You'll rehab it for me? (but you use my money and I can't control the quality)

You'll rent it out for me? (but I can't vet the tenant)

You'll even sell it to me with equity built in? (but it was your appraiser who came by)

By the way, I found your comments really insightful on breaking down a number of metros in response to the article "How to Invest in Real Estate When Everything Is Too Expensive"

J Scott 's answer was perfect.

The dollar amounts don't matter, and the return he mentioned may sound quite high (it's very nice!), but $1,250 cashflow per month on $100,000, is $15,000 / year, aka 15% cash-on-cash return.

Having $100,000 cash to invest, you can definitely command 15% returns. Now the question is, will you hold out for those deals to come by?