All Forum Posts by: Steve Morris

If it's your first one - HIRE AN EXPERIENCED MANAGER.

A lot of these are tenant management issues like private/Medicare pay and keeping vacancies to a min.

If you build and get it running well, then at least you can decide to keep it or sell it at a better price

"I've been considering opening a line of credit and use that for a portion of the downpayment."

I'd open a LOC, however, for emergency or "buy-of-the-century" deals.

Rates on LOCs are higher than cash-out re-fis.  However, if this is your first investment, you're going to make mistakes which cost.  So I'd try to keep my debt service down and leave some rainy-day money around.

You also need to add that in as debt to get your CFBT. High LTV means you'll prob have little room for return.

Then the question becomes how much you can earn vs. how much the money costs you.

I’m currently finishing up my brokers class and will be taking my state exam shortly after. I’m a little lost as how to find a sponsoring broker or where to even begin to look.

1) What do you want to learn?  If it's residential, then that's diff from commercial

2) Call, sched an appt and talk to the mngng broker.  What tools for leads, proposals do they offer.  Fee structure of course.

3) How will they help you get to speed quick?  I think the best way is being a junior assigned to someone that knows what they are doing.

4) Look at their listings, is that the stuff you want to do?

What payment method should I use?

Wire transfer bank to bank is best.  Sending bank warrants it that way if they do the transfer.

"see when the best time to refinance/sell because of the ROE."

ROE should be easy enough to calc since Equity = Value - Debt.  However, what would tell you the ROE is "right"?  Like hitting a number or peak in a curve?

My question is for those who got their contractors license. How has it benefited you? Has anyone started building small multifamily and has it paid off?

Know a few people that have done it and it works out well for them.  At least you're attuned to your own needs.  However:

1) You can spend a S***-ton of time at the planning bureau to keep them happy and god forbid you upset them.  That I think is the worst thing about being a GC

2) You lose a layer of liability if you don't use a 3rd party

3) With ref to 1), you're going to need to learn to deal with govt which takes time and scars.  Also you need to plan enough to make sure you hit deadlines.

4) You still need to build a network of subs.  That takes time to figure who is good and make them trust you.

5) Talk to a lawyer, but you may have added liability even after you sell a property.  Hence, the need for license and bonds.

However the county assessor site does keep the recorded deed and page numbers for each property. Could I take these deed numbers and do the lookup on my own?

Well, here's the problem.  I think you can go to the county (assuming that's the entity) and ask about a specific property and for a fee get a print out of recordings.  So I'd go there first and see if they allow access and what kind.  It may be microfiche, which will be a PITA.  However, these records are supposed to be public info, they just see them as a profit center some places.

As far as title companies, they can do it, but it'll be an exception and costs them time.  Just like them generating a PTR.  It might be worth it (if you can get away with it since sellers pay for std title usually and want their company sometimes) to cultivate a relationship with the promise of multiple deals thru them.

"Is it possible to get prequalified through a hard moneylender prior to getting my first deal?"

Wouldn't hurt, but it's no guarantee since hard money guys look for 2 things:

1) The ability of you/property to service the debt, so that's partly the personal side AND

2) Things go sideways (ie you default), there's enough equity to cover their debt.

Be careful, since you default, that may be it and you don't get any equity out.  

Some of the less scrupulous ones will push stuff to default.  Like ongoing "inspections" and tell you that you need new siding or roofs or paving and then you need more money to stay out of default.

However, after getting the looking up each home on Realtor/Zillow/Redfin, it appears none of them have been sold.

Ultimately, getting access to the database with warranty deeds recorded is the ultimate solution.  If you have a friend at title, they can look it up.

The issue with the public access WEBsites and the free title ones is there is a lag from recording to updating the record you access.  It usually is like 30 days in Portland (i.e. you may sell/record something on 1 May and the database may not show it until 1 June.)

I don't mind using Zillow et al, but they're free services and you get what you pay for.  So I'd use it for an initial screen, but wouldn't rely on it if I'm serious about a property.

As far as the values they publish, eh, not so much.  From what I get is they look at sales, get the ZIP and SqFt and price (maybe some other stuff) and then come up with an "average" $/SqFt.  Then every house gets the average of that.

No one house is "average".  Same SqFt can be in a great location in good shape vs. on a busy road, no view and rundown - Which Zillow/RF don't compensate for.

"So use discrimate against ex ex felons".

If he's an ex- ex-felon, doesn't that mean he's a current felon?   It''ll show on the credit/criminal report.

The logic on that is got my mind going.