All Forum Posts by: Shera Gregory

The good news is that with a value of $45k your all-in number is less than 70% LTV. But getting a loan for only $31k will mean finding a bank that's willing to do that. In my area most of the banks will only lend $50k or more but there is at least one that will go down to $35k. I would suggest callling the smaller local banks and credit unions in your area to speak with them about their loan requirements. Are you planning to do the financing in your own name or is the property already in an LLC? If in the LLC then you will need to speak with the commercial lending side of the bank. You could also try networking in your local area to find a private money lender who is willing to do longer term financing.

Hi Matthew - There are a ton of variables to consider so almost every answer will begin "it depends...".  What was your original goal or intention in getting your license? Do you want to do marketing to find people who are looking to buy or sell a home in a more retail transaction? Or is your focus on using the license more in the investor world? 

I'd be happy to talk with you about this sometime if you want to give me a call.

Hi Eddie -- You are correct that there are quite a few meetups in Richmond. I have attended about six different ones and there are even more than that. If your primary objective is networking then in my opinion it is certainly worth it to join either the REIA or RING groups. There is a good bit of overlap between those two so if cost is a concern then I don't think you would need to join both. RING is smaller but focused on experienced investors who are actively doing deals. REIA is larger and includes both those who are actively doing deals and those who are looking to learn and network with experienced investors. In addition there is a good meetup for those doing deals in the tri-cities area (Petersburg, Colonial Heights and Hopewell) which you will find listed as the Colonial Heights meetup. There are several that are focused on wholesellers but which are attended by many investors as well. Two of those are hosted by Martine Jackson and Frank Cava.

Welcome @Luke Davis -- There are lots of us here in Richmond doing rentals and flips. A couple of the popular meetups in the area are the REIA and RING groups. You will find both on meetup.com. Hope to see you soon! I am easy to spot since I am bald with a full head tattoo. Be sure to say hi!

@Rashad A Smith - And just to be clear - the timeframe I was speaking of is measured in days or a couple of weeks, not months. So you are not tying up the seller's property for an unreasonable amount of time without being able to close.  That's another reason to make connections at a local meetup .. so you have buyers ready and able to close.

Hi @Rashad A Smith -- If you aren't already attending one of the real estate meetups in St Louis I'd recommend doing that for sure. There should be enough folks there who do deals in Illinois to give you some ideas based on their knowledge of the local market. If you have a signed contract with a seller and you pay some small fee for "consideration" then you have an equitable interest in the property so they are not able to do a different deal directly with a buyer. So this should be part of your conversation with the seller to be sure they know what they are agreeing to when they sign a contract with you. In my market there are a few wholesalers who will record every contract so that it will show up on the title search if the buyer tries to sell to someone else.  There should be some limited time frame in the contract during which you are lining up a buyer. If you are not able to find a buyer during that time then the contract would no longer be valid or binding. This is not legal advice and things may certainly be different in your state. This is just what I have observed in purchasing properties from wholesalers and being involved in discussions about the wholesale process. Best of luck!!

I have had decent results with going to suppliers and asking for the names of a few contractors they work with. So, for example, go to Sherwin Williams to find painters, go to the local plumbing supply to find plumbers, etc. Be sure to let them know you are an investor, not a homeowner. I've found the best results when it's someone they know, not just someone who has left cards there with them.

An extended stay rental should command enough of a premium over regular rentals that you would only normally get people who really need an extended stay setup. It doesn't sound like this guy is really looking for extended stay. So why would he be willing to pay the premium? I agree that it seems odd. Are you charging enough for your rental? If you rent to him and he just wants to keep renting for many, many months does that fit your game plan?

@Allyssa McCleery It's pretty much a guess based on the condition. For the big items like the roof and HVAC I will usually have an inspector look at those to be sure I'm not having to replace them right away and I get an idea from them of when I should expect to have to replace them.

For specific properties I do an estimate of the remaining life for each major component for that particular property. Also a numbers geek!