All Forum Posts by: Scott D Fitts

Having worked in Augusta for the last twenty or so years and been watching the market / population ebb and flow over the years, I would be cautious at investing in multi properties, unless it could be bought at a great price and then upgraded.  There seems to be more C and D neighborhoods than B's and since government employees are not paid enough for the most part to afford the upper scale properties, one would be hard pressed by vacancies.  I look at single family home values as a gauge of what rent prices can be supported, and based on the cost of these in that market, my guess is that your average person would buy a home before paying rent.  It is definitely a different world than Portland or Southern Maine at this point.  Just some thoughts...   

@Rick Browning, welcome to BP. This is a great community which is filled with people willing to bounce things off from at any time. Take advantage of the experiences and advice of everyone and follow your dreams. I have found a vast majority of people in here are in this part time and looking to get into it as a full time venture. REI is one of the most solid and secure paths for building wealth, if done correctly.

*Welcome @Aaron Perkins!  Great to have another member from Southern Maine. I believe you will find BP to be full of information and everyone very helpful. Anything you have for issue, give a shout. 

I have bought and sold a few homes over the years, but not as a serious investor, which is what I am trying to become, now that I have more time to invest and the kids are grown up. If I had it all to do over again I would have kept some of the homes I have had over the years and use the equity in those homes to buy more. Remember the saying, you make your money on the purchase of a home and not on the sale. If you can buy any property at least 75% of the reasonable ARV, minus the cost of repairs, you should always be good no matter what happens with the market. It will always go up and down, depending on jobs, crime, politics and the economy. If only I had understood that years ago. I would add that it is important to not become emotional in the process of buying and selling. All too often it is easy to become emotional in a deal, which clouds logic, similar to being at a winning table at a casino. Those who know enough to walk away, while they are ahead of the game, usually are the winners, because those who stay at the table end up losing. I think the same is true in this business.

Hi Reynald,

When I was just starting out I went from a house, to a mobile home and then back to another house over the course of four or so years.  I found the mobile home to be an inexpensive alternative, but personally once I was used to having space and storage, it was a difficult adjustment.  I was able to sell the mobile home when I moved out, with a slight profit.  I found also that taxes were quite different on the mobile home, than a house and at the time (late 70's) the mortgage on the mobile home was not tax deductible.  Not sure if it is today, but another consideration.  I think you are far better off in a house, which can appreciate, than a mobile that essentially will loose value over time.  There are many fixer-uppers out there, which are not in that bad shape and you can usually pick them up for a good price with some patience and persistence.  Good Luck.  Scott 

Emilee,  Not sure of how it is in Michigan, but here in Maine the on-line course runs about $500 and then there are the costs of the tests and the license in the end.  There are a lot of advantages to having the license and sometimes it may present a problem when dealing with a prospective seller, especially if you want to purchase the property for yourself as an investment. It is simply a matter of being very transparent in those situations and making sure you are approaching the seller as a buyer and not an agent.  I believe there are far more advantages, than disadvantages in having the license. It also depends if you are going to do realty part time or full-time, as well as the brokerage you are affiliated with and their rules / procedures.  I have been doing the on-line course as opposed to classroom, simply because of limited time.  I have found the on-line works for me and allows me to pace myself, which classrooms tend to push you through. During the process, I found a lot more to it than I expected and there was all sorts of resources available for help, it was just a matter of asking. Much of the information I picked up in the process is also really helpful in understanding the investment side and strategies...  Best of luck to you.    Scott  

I have invested in may cameras over the years, usually buying at the upper mid range. Each time I have made the jump to the newer technology, I have found that very shortly someone will come out with a better product with more features.  The same is true with computers, tablets and about everything technology.  I am now at a stage where I don't bother upgrading, until the product I have no longer will do what I bought it to do. I recently looked at some photos and videos which were taken with an I-6, using an upper end app that costs about $10 and the pictures blew me away.  I figure by the time I need to upgrade it will be an I-9 and the pics will be fully 3D... 

Hi @Chelsea Morrissette,

I am in the process of getting my license and can tell you that the education process should be very helpful in find and comping properties. For one thing, you will have access to the MLS and access to other agents as well as investors. It's too bad that your credit history got messed up, but while these things may have an effect on credit scores, it should not have much effect on a good deal, if you can find one. I have learned that a good deal sells itself, especially to investors. Deals are found through whatever marketing mechanisms you chose to use, understanding the ARV and the MAO concept for whatever exit strategy you may have in mind.

Sometimes it is just a matter of the person wanting some time to figure their next step and not having to deal with the home.  It is also possible that the sale could effect their tax bracket and seller financing will allow them out from under a property that needs work. It also usually allows them to get a better price and they can count on a balloon payment down the road in a few years. This seems to be getting more common, especially on a property with good equity.

There is hope for anyone who has the willpower to keep getting up, when knocked down and is willing to learn.