All Forum Posts by: Scott Ficek

Keep in mind that you may need some members of your team all the time and other hardly ever. Even with 28 properties, I talk to my attorney every 18 months, maybe. I talk to my accountant about quarterly, but I talk to my mortgage guy every 2 weeks. When I was a new investor, I talked to my Realtor every week as he was the only other real estate investor that I knew.

I guess my point is to not get to stressed out trying to fill out every last position before getting started. Some people will come onto your team when you need them for the first time.

I would ask the other members of your team who they would use and/or recommend.

Being a licensed agent, I am always amazed by those numbers.

I have heard people tell me that (at least in Minnesota) because the barriers of exit are so low, that 40% of the "licensed agents" are doing their annual recurring training and paying the license fee just in case they want to help out a family member or themselves when buying or selling a house. Other than that, they are not active agents.

I wish it was more expensive to get in the business and then it had some transaction requirement to stay in. Then we would weed out the people that are not really agents.

Depending upon what state you live in, lenders may be required to post foreclosure information in a newspaper. Those are your distressed sellers for sure.

msedwick-
Thanks for checking out my website. And it is good to see another Minnesotan here (there aren't many of us on Bigger Pockets!).

Are you looking to wholesale the pre-forclosure or buy it to rent it out?

If you are doing wholesaling, the key is to build your network of buyers first so you can unload the property once you find it. If you are buying pre-forclosure to own and rent, it is pretty much the same as buying any other FSBO. If you have to deal with a short sale the banks are getting much more strict about only working with licensed real estate agents to facilitate the transactions.

Shoot me some more info (either here or via email) and I can give you a more detailed answer.

Take care.
Scott

I can tell you that I own 5 townhouse/condos. They cash flow (barely) and are easy maintenance with long term tenants (and they were built in 2005). I used a builder discount to buy them no money down.

Despite that, if I knew then what I know now, I would run from them. I am sure I will never make any capital appreciation on them as their are too many rentals in that development and some are now going into foreclosure (driving down the market value of mine).

I would only buy them again if I had really high cash flow and that was my goal. If Mike's numbers are right (I am sure they are), they are too skinny. I you have to replace a water heater, you would spend your entire $684 net income!

TC-
I agree. I have customers that all of sudden just decide a tenant needs to go and they are going to work every angle to get them out. Bad idea to make decisions when you are angry or frustrated.

TC: love the comment

I hope I am not in that group :goofy:

I am just full of topics. New question....

Do you let your tenants "alter" their apartment in any way such as paint, wallpaper, shelves? Also, would you let them paint to work off any back rent?

If you do either tell us what you would allow, how you handle it, and if you pay for anything.

I am with Mike. This is just the start. Since you have no history with these people, I would go month to month for now and see how it goes. If they turn out to be stellar tenants, sign longer later.

I (and I think MikeOH) have seen tenants like this too many times. They are nice and friendly, but are just not playing with a full desk or frankly just don't know any better (or care).