All Forum Posts by: Sam Valme

Thanks @Tim Carter, thanks for the input! From what it sounds like, it would be a pseudo partnership that would need to be formed. There should be some written agreement between my parents and my company on terms to release funds to us and how those funds should be allocated. 

Hello BP Team! 

We were planning on purchasing our first rental in Feb of next year. Instead we are thinking about requesting the current owner open a HELOC on the home. They current have about ~275k in equity. We could then use this HELOC as seed money to begin our investing in other homes in the area.

(We live in the house and have been renting it out for them for the past 5 years. The owners are my parents which is why they would even entertain a silly idea like this.)

My question is: What are the steps my company would need to take to gain access to this HELOC? Would it just be as simple as them going to a bank, presenting their current mortgage status, and them getting the credit. Then when I find a house to purchase, they cut me a check and I can throw the money where I need it to go?

I understand there will be interest that must be paid when they withdraw the funds. But what are the exact steps I would need to take to make this happen? 

Thanks in advance!

@Mindy Jensen, The app looks great! One thing I am curious about is push notifications for iOS. Is this something being worked on by Dev? I don't see any options in the notification settings.

Hello @Tzook Bar Noy, I've been looking in that area myself. My dad lives in Stockbridge so I've been up to Decatur a few times. There has definitely been a lot of talk about ATL being a "rising" market. But with appreciation and you won't realize it until its realized. So I wouldn't buy into an area just to wait. 

You should consider your overall goals before you buy. Especially when it comes to HOW you buy. If your all in is 77k and you use your own money. What happens when that rehab goes over? If possible, leverage another source for the downpayment and/or the rehab. Another thing would be to get actuals on the expenses for the house. This will dictate whether $750 will be adequate for your ROI.

I'd take a look a the calculators at www.biggerpockets.com/calculators. Run the numbers and see if it makes sense after everything is said and done. Good luck!

Awesome! Thanks guys.

Hey BP team. I was browsing Zillow with my wife, going through some ugly homes. When I noticed a note on a foreclosure. 

This house is being sold for 19k. If a buyer was to purchase this house. Would they have to pay the "$100,000 unpaid balance"? That doesn't seem to make any sense to me. Either A. I'm misunderstanding what this is saying. or B. There has to be a way around paying this balance. The houses ARV is 40k. With an 100k balance the bank would never be able to move this house.

Thoughts?

*bump*

Hey @Perry Ivy, I would do exactly what your doing here. Ask around.There are some good suggestions put out thus far. But regardless of how you get it. What you really want (and should pay a premium for if necessary) is a choke-able neck. 

What I mean by that is a warranty. Preferably on the unit and the labor if anything goes wrong. An extra 20% on the cost upfront with an extended warranty on parts and labor could be thousands saved in Capex years from now. Stabilizing your YoY NOI.

Hey @Jeff B. , it sounds like you have the qualitative part of your tenant criteria complete. But what about the quantitative? Target NOI and ROI? There are always investors who will disagree with who your ideal tenant is. But as you said this should meet YOUR management style. One thing that can't be argued is the fact that this ideal tenant should be maximizing your cash-in year over year.

I'd agree with @Jeff Rabinowitz. Figure out what the norm is for your market. Make some calls. Attend some showings. See what the competition is. But if you do choose to provide appliances. Have clear verbiage in the lease that goes over the use of these appliances. 

Also, when it comes to rentals you don't need the best of the best. But you do want to be on the top of your competition. So if stainless steel is the norm. Go with stainless steel. In regard to the question of "is it worth it to replace it". My policy, if it ain't broke, don't fix it. But if its janky and will put off possible tenants thus losing you rent. Then replace it.