All Forum Posts by: Sherman Ragland

Welcome. If no one has told you, yet... “Having a real estate license and expecting to make any money is like having a driver’s license and expeting to win the INdy 500”. Once you finish getting your license, your real education in this business begins, and you’ll need to be prepared to forget 99% of what you learn in the real estate class.  Always be mindful that when you are doing your own deals, you are the client, but when using your license to be a “professional bird dog” the client’s interest always comes first.

Probably not a scam, but also not a “Private Lender” either.  A private lender is someone that you cultivate, and you dictate the terms.  Someone who charges up front fees, and brings their own docs is a Hard Money Lender.  They are in the business of lending.  If you are a newbie, they will lend when even your momma says “NO!”, but ultimately, you’ll want to cultivate your own sources of money where you are in control of the deal.  Putting together your own program and you calling the shots is a true Private Lender/Private Investor program.

Best to deal with experts when it comes to insurance.  Most “homeowners” policies automatically cancel when the property is vacant, becomes a rental, or is under construction.  Many landlord/rental policies also (automatically) cancel when the property is vacant or under construction.  During construction you’ll want “Builder’s Risk” and you’ll want to stay in touch with the insurance broker to let them know when construction ceases and you’re in lease up.  Again, the key is to get a knowledgable broker who can get you everything you need, or will refer you to someone who can.

Section 8, or “Housing Choice”, is a Federal government program that is administered by either a state or local agency.  The Feds send the money along with “guidelines”.  This is why you get so many different stories about the program.  Even within the same state, the program can be administered differently from County to County, City to City.  Best to speak to someone with first hand experience in the jurisdiction where you are thinking of participating.  It has its Plusses and its Minuses.  What’s good is that you get some (or all) of your money on time, every month.  In places where they are “neutral” they can be a place to go to get the tenant to perform as the lease requires.  On the downside... TOO MANY TO LIST HERE, including the fact that some programs, like Baltimore City, will stop paying you if the tenant complains to them, even if the tenant never complains to you.  Again, the administration of the program is city by city, county by county, so talk to the local folks who are actually participating to get insider’s secrets.

This is why we have leases.  Read the lease. If you do not (fully) understand it, then hire an attorney to interpret it for you.  If you think the Landlord is being unfair, see what help you can get from Tenant Right’s organizations, and if you can’t afford an attorney, see if a local law school can provide one to you.

How confident are you in your negotiating skills?  If you feel pretty good, go tackle it yourself.  If not, be willing to hire the agent as a “Buyer’s Broker”, and be willing to pay their commission, instead of the Seller.  Comes down to “How Much Money Can they Save You By Negotiating A Lower Price, Than You Could Get it For”.  If you agree to pay them 3% and they can get the price down 10%, you made out well...

Congrats!  

Top 3 neighborhoods to “fix and flip” in Baltimore:

Canton, Remington, Washington Village.  As others have said, its “block by block” and I would not recommend you attempting Baltimore “long Distance”...

We’re in Prince George’s County, MD, which is the county just to the East of Washington, DC. Average home values are $270,000, and average net rental income (after mortgage payments and property manager) is around $1,000.00/month.  Not sure if this constitutes “best”, but I’ve found very few markets this good...

Make sure you ask that attorney for an"Opinion Letter" on his letterhead, explicitly stating that you have NOT put together a security.  ...for when the attorney general calls.