All Forum Posts by: Mark Updegraff

NOLA is providing incentives to buyers which is driving up prices. I can get details from my brother in law, but if I remember correct if you live for a number of years you get about 60k in free money... Funny, homes are up about 60k in value since then ;-)

Markets are local, local, local. Macro trends are not relevant. Now has been and will continue to be a great time to acquire deals. Just make sure you know how to spot them!

foreclosures are public record. Investors often bring a list, as do I. How do I get it? I pay for it! It cost's about 200 / year for the subscription. They keep it updated and provide it in list form. It is worth the money. Your time extracting the data from public record and updating it would create a position. Just pay the money and get the list. In my market Dolan Media provides it. As soon as my son can make me a cool book to hold it, I'll put him on it ;C)

It is easier to maintain low vacancy with fewer properties to worry about. I self managed at near 0 percent vacancy until I got past 10 properties. I'm still diligent about keeping it low but it is MUCH harder with more on your plate!

Originally posted by @Sid Newstrom:

Hi Kennith,

I will be managing myself. and thank you for the adjustments. the 571 is just because my mortgage calc is broke. should be 546.68.

Also right now I am not really looking for cash flow for the first couple of years just to break even and get my feet wet in a location that is familiar. What I am looking at is the appreciation in the property and the ROI. there is such a low inventory in this neighborhood I don't think selling it will be a problem. Maybe my train of thought is skewed. I figure if it doesn't work out as a rental I should be able to flip it. Any thoughts on this?

Thanks

Breaking even isn't the name of the game. Don't even consider "appreciation" it is just gravy if it actually happens. Look for something that makes you money. The more the better. You'll know it's a good deal when other people are jumping on it. Miss a few of those and you'll be better equipped to snatch the next one!

I've been an investor for 6 years, and an agent for 1. Helping new investors as a Realtor is a tough challenge! You need to trust your professional, but ultimately go with your gut. You will make mistakes, but you will learn.

Your negotiating power in a deal is going to depend on market conditions and the quality of your offer. Only you will be able to know the true dynamics unless you give us more details to help you.

First off, is this even a good deal? Show us your pro forma if you have one. How is it priced compared to what you're planning to offer? Are you offering within 5% of list price?

Is this a hot market? How many days on the market?

The listing agent priced this knowing what you know. I would ask if it works, if they say "I don't know" reduce your initial offer.

You're going to negotiate this before your inspection. Negotiation after an inspection is more common with owner occupants than with seasoned investors. Trying to negotiate heavily after an inspection is tough unless it was something that the seller was unaware of. If your agent is good, the seller is already PAST their bottom before you go into the inspection.You're definitely not going to make the seller smile when your agent comes back again. Stuff like, "Fix the leaky faucet" and "Fix cracked window" makes me cringe as an agent and an investor. When you get into real MEATY deals, the "inspection" mentality is out the window all together, and that's where I like to be!

@Ned Carey Not really easily available. I've feel like I've been searching for this lender for a long time. Through my networking over the last year with, investors, property managers, and brokers I stumbled on a good Regional Bank that is able to help.

If ya'll haven't read Thomas Sowell's "The housing boom and bust" you should pick up a copy. He's a great author & economist and like his mentor, has a great knack for explaining complex issues with simplicity.

I should close my second deal of the new year this month. A 4 unit mixed use (1 commercial space & 3 Studio apartments). Currently 100% occupied. Exterior needs repainted, but other than that pretty solid. Holds up to the 2% rule as is, but when I turnover the tenants there is room to increase rents. I'm using hard money to close because I wasn't anticipating purchasing this, and plan to cash out with a commercial product this year.

In NYS attorney's have final say, period. If NJ is like NY then it means that the attorney has not approved the contract yet. If you get an offer presented, and it is a better offer, there is a chance the seller will call the attorney, have him kill the deal that he has yet to approve and take yours. As an agent in NY in competitive markets I try to push the attorney approvals as quickly as possible. I typically do 3 days, unless it is HOT then I do one day. That doesn't guarantee you'll get the attorney approval in time, but you can start to apply pressure to make sure your deal is not squashed by a better offer. It does happen in practice!