All Forum Posts by: Rick Stein

Hi, Rachell and thanks for the vote. Good luck

I am both an REO agent and an investor. You can't blame an agent for not wishing to work with an investor who wants to look at scores of properties and makes very low offers on some properties only to have those offers rejected. It is not a good use of their time. Most REO agents such as myself have a buyer's list and the property, if it is any good, is already sold by the time it hits the MLS. As I stated in a previous posting, the MLS is not the best source of good properties as it puts the investor in a competitive situation.

I do not believe the MLS or Realtor.com (the public version of the MLS), or any other public site is your best bet. Besides being an investor for over 20 years I am also an REO agent. By the time an" investment grade" property hits the MLS, it is either already sold to someone on the agents "buyers list" or has multiple offers in short order. If it does not, it is not very attractive. I do a great deal of direct marketing. When I get a response to one of my letters, I can negotiate directly with the owner , perhaps include some creative financing such as owner financing or private money and , hopefully, strike a deal that works for both of us. Going through a real estate agent is very frustrating because most do not understand creative financing and can not explain your offer. Driving or walking for dollars is also effective. Why not contact some of the smaller property manager's in your area and ask them to keep you in mind if one of their clients wants to sell. That strategy has worked well for me. If you are in NJ, I would highly recommend joining the South Jersey Real Estate Association of which I am a board member. We are a non-profit educational group. The networking opportunities are very production.

Good luck!

I agree with Kate. Get a lease on it and refinance. Your tenant would be paying your mortgage and you would have the cash you need.

I just bought a home whose tenant has been there 34 years on a month to month lease.She was paying $750/mo which equates to about  half of the market rent of $1550  which I am getting on two  similar homes I own in the same neighborhood. I can't double the rent , but I can raise it to something "reasonable" i raised it 20% to $900 and sent her the new lease via her attorney (she lawyered up). The next month she paid $750. When I called her, she said she paid the old rent because she had not signed the new lease. I told her I was about to commence eviction proceedings. She paid the other $150 the next day. Luckily she is moving out in April at which time I can do my rehab (the place is a mess) and flip it.

Is the $500/unit your NOI or gross rent? If it is the rent, what are the taxes and other expenses needed to determine your NOI? What is financing costing you?

False! A private money investor could have money in a self-directed IRA and is looking for a long term, consistent return. I also have borrowed private money at 5.5% for three years with the first payment delayed 4-5 months to give me time for the rehab. Don't make negative assumptions.

Buy bigger properties. I currently own single family, two and three family homes. I’d like to expand to larger multis. I also enjoy writing short stories. I have a pile of rejection notices. I’d like to get published in the coming year.

Just keep in mind, if you flip the property, you will pay short term capital gains. If you really have equity, you can refinance at 80% of the appraised value and put some tax free money in your pocket. Check with your lender on how long they want the property seasoned before you can refinance at the appraised value.

As an agent myself, a larger commission won't make it more attractive to the buyer. The seller should either make the repairs, offer a credit or lower the price.