All Forum Posts by: Tchaka Owen

@Steven Mason - all day long! Florida is the land of investors....thus private lenders too. I probably have 5 saved in my phone and that's barely the tip of the iceberg. A nice benefit of being in FL is that given the large number of lenders, you can shop around. And it's not only about rate/points and junk fees, it's also about the criteria - they all differ. 

@Lynn McGeein - let me add more so you have a clearer picture. The question isn't about negotiating commission with an agent; there are those who do and those who don't (to each their own). It's about a buyer mandating the commission change and not as non-represented. A listing contract involves a negotiation between seller and listing agent. If a buyer presents a sale & purchase contract that interferes with the listing contract (and not pre-negotiated or agreed upon), I will kick it back to the buyer. Anyone trying that and crying "ethics" probably could use a little more RE education. 

@Nathan Olds - Good move looking to pick up a triplex! My friend recently got one just north of Atlantic and several blocks west of 95. As for your numbers, they're not bad. If I were to tweak, I'd suggest the following:

Closing costs: $3000 - up this to $7000; unless you're paying cash, then $5000

Electricity: $120/unit - change to zero. Tenants pay their own electricity.

Insurance: $300/mo - Possible, but probably closer to $200-225. I have a great agent I can recommend.

Water/Sewer: $30/unit - Garbage usually goes with water/sewer. $50-60/unit is good.

Garbage: $15/unit - see above

Maintenance: 5% - cool

Vacancy: 5% - cool

Cap Ex: 7% - cool

Property management: 11% - 8% to 10% is what you'll find in the area

Property Tax: 1.5% - nope. 2.0% to 2.2% is the number. 

Hope that helps!

@Stephen Barton - good post. Several comments:

1. Wholesalers do have a place in our business and despite what some may think, there are instances where they are the proper solution. 

2. You are spot on about the greed (you're also about 4 years behind S. Florida). Your mindset of wholesaling is what Ron LeGrand advocates and is a good one. The new mindset is pure capitalism brought about by an abundance of buyers. Talked to a guy 2 years ago who picked up a home for $165k, sold it for $225k to an investor who put in $30k and listed for $299k. So the investor spends the time and assumes all risk to make about $25k. Meanwhile the wholesaler walks with $60k. But that wasn't unique, given that everyone and their grandma was an investor, that's how wholesaling has been in S. FL. 

3. What you describe seems a little different. Putting a home on the MLS requires the seller to sign a listing agreement. How are you ethically able to do that as a licensed agent if you're also the wholesaler?

@James Mc Ree - the one piece you excluded is what you want to do. Are you interested in purchasing the home or not? If so, proceed. If not, bail now. If you feel that you need to be compensated, then ask for real costs, not for opportunity costs. You don't own the property, so you aren't getting rent. Any costs associated with waiting is what you should request. Also, there's no guarantee that probate will take a month; it could take 6 months. Most importantly, if it's a good deal...close on the sale and smile.  

@John Burke - you might be looking at this in the wrong light: being overseas is great reason to invest in real estate in the US. You're making very good money (a portion of it is tax-free) and you likely have some living expenses covered. Some of that disposable income should be tucked into real estate. 

The first home my father purchased was while we were back in the US. We moved 10,000 miles away before settlement, so my grandfather signed the paperwork. After 31 years, my dad sold it for 4 times as much. We lived in it a total of 3 months, the rest of the time it had renters who not only paid it off but the resulting positive cashflow is one reason why he could semi-retire in his late 40s. He also picked up a condo 17+ years ago that's a rental. As a heads-up, my parents haven't lived in the US since 1985. And they haven't had problems. They do have a few friends who focused on real estate and picked up numerous homes. Imagine how nice it is to own 5 or 6 homes in the DC area. That could be you.....in NC. 

What I suggest is that you contact a few realtors and pick one that you like and get on an automatic notification several months prior to your next visit. When you're back, go house hunting. If you find one, buy it. Do a POA if you're leaving prior to close and have someone finish it for you. If it goes smoothly (it should), do it again on your next visit. And again and again. You'll move back home in a few years owning multiple homes with tenants paying your mortgages.

Ben, do not call him back! 

You have nothing to gain by doing so. NOTHING.

No matter how nice an attorney may be (and some actually are nice people), they're hired to help their client. It's normal to think you can work things out or come to some understanding.....I'm telling you from first hand experience, it's a false confidence. "Anything you say can and will be used against you" firmly applies. 

My consult is free. However, if you call him, I'll bill you $1000. >:-)

 I know a broker from Cleveland who has tons of factual info on this! :-D

@Jacob R. Crosby - several comments:

1. A HELOC is financing. The advantage is that your closing costs are tremendously less. The downside is that your rate will be higher. Although you'll be pulling in $1300, that's at the cost of having money available to continue investing. If you're looking at building wealth, be sure that your model takes into consideration that you'll be using the HELOC (btw, nothing wrong with $280+ per door!).

2. One nice aspect of multi-families and long term investing is that they weather market fluctuations better than SFHs, so even if your market goes down, you'll have tenants paying until one day when value is back up. That said, if you are confident that that segment is overheated, I'd fix up and sell. Pocket that $40k which will come in handy on the next deal. Good luck!

@Brie Schmidt - another factor could be the interface. I've had an instance in the past where an agent directed me to the instructions and I responded that none were visible. It happened that on the MLS they were and I was using something else to access (sorry, I can't remember the details).