All Forum Posts by: Tchaka Owen

@Chris Szepessy and @Todd Powell - 30 days notification means you must be notified 30 days in advance. It's when you are notified, not when they wrote it. What you do is up to you...you do have every right to bill them through December, though I probably wouldn't. I'd bill them through December 4th. You say they were good tenants, which buys some leeway. But how good were they if they made plans to move without allowing you to address a concern? 

@Amber Turner - I've been looking for this and your options are EXTREMELY limited. The one bank I know will do it is TD Bank. I believe the minimum FICO is 685. Other than that, you'll be searching forever. I found an article (I'll look for it) that listed 10 possible lenders and when I pursued all of them. At the end, I was left with 1: TD Bank. 
Checking with CU's is not a bad idea. A local CU just stared NOO (non-owner occupied) HELOCs.....doesn't help because my place is in another state, however it's nice to know it exists. Good luck!

@Michael Junior, I was in the car for several hours today and listened to the 2 most recent podcasts. In one of them, the guest mentioned an episode in his past where he found a really good deal but second guessed himself. So he spoke to a local investor to get his opinion on the deal. A week later the local investor closed on that deal. He doesn't doubt himself anymore. So far, everything you've said indicates you like the deal. Perhaps you should plug in BP podcasts and enjoy. 

@Marco Calderon - if the numbers work (based on the little info you've provided, it appears as though there's probably $350+/mo. positive cash flow) and you do obtain the place, I recommend that you put an additional $150-200/mo towards the mortgage. With a 40-year FRM, you're barely touching the principle, however that small additional with start to dig in and will cut the length of it down significantly as well as help you gain equity.

This post is great as it gives such varied responses based on location and experiences! @Julie Gates  there re is a Code of Ethics for real estate agents and we must deal fairly and ethically, therefore if an agent is “fudging”, it is against the Code of Ethics. That doesn’t mean they don’t do it, however do know that it’s improper. It is important to know your market because the attitude of agents differs greatly depending on where one is located. I dubbed South Florida “The Wild West of Real Estate” because anything can happen. I’m so accustomed to ‘other offers’, etc that I don’t even flinch. Do your research and figure out what number works for you and don’t go beyond your max. As @Eric C. mentioned, there are factors other than price. I have a client closing soon and I went through a similar situation and I made it clear that my buyer is approved, has very high credit scores, full doc and WILL close (that’s not always the case in S.Florida). When they didn’t accept it, I let the other agent know where we stood. Several days later we shook hands. We’d done our research and knew exactly where we were willing to go. Find your number, ignore the noise and stick with it.

@Dave Passey - the notion that “the agent is there to protect the best interests of their client….” Is not necessarily accurate. For a single agent, yes. Not everyone is a single agent and in FL we are all transaction brokers unless we change designation. Thus our obligation is to the transaction. As a listing agent, does one work the number up? Sure. But the objective is to find a happy medium. Sadly, many transaction brokers forget that and end up hurting deals (I see it all the time). However, it’s not accurate to assume that’s what all agents do.

@Russell Brazil - You’re in my home area where there’s less BS in business, which bodes well for real estate. Down here there’s plenty of incentive to lie, despite it being unethical. People here aren’t afraid of multiple offers so some agents use that to their benefit. If buyers here used escalation clauses more often, they’d be able to call listing agents on it, however no one uses them (sadly).

@Mark Fries – You’re cutting off your nose to spite your face. Yes, you don’t need agents to succeed, however to stop working with all of them is merely cutting off another potential source of business. FL is full of less than impressive agents, however there are some excellent ones who do a great job. 

@Jay Hinrichs - escalation clauses were big in the DC area 2003-2006, almost every transaction utilized them. Agents tended to list on Thursdays and selected on Sunday evening from the multitude of offers. It was difficult to win bids with such clauses, without them you were doomed. For some reason many areas don’t use them.

@Dan H. - solid advice! I’ve also felt that if someone is willing to overpay, let them. I (or my client) don’t have to win it. Coming back at $5k less is beast! Well done, sir.

@Dave Passey

@Russell Brazil

@Mark Fries

@LeAnna Davis, what @Ade O. said above. I'll add family to his list as well. I've gone to my father several times. One of my best days of investing was about 13 years ago when I wrote him a check for $60,000 (he gave me $7500 a year and a half earlier and the deal matured). There's an added sense of satisfaction when you also make money for someone you like and trust.

@Steve K. 

You wrote,"I think I can pay off my debt on my own in the next few months. So, I need money in 5 months when the debt is due. I would consider a fixed rate now where should I look? How about online lenders like Rocket, Quicken, etc.?"

I see where you're coming from, it doesn't make financial sense to pay on money you're not using. If you need it in 5 months, perhaps get the process going right after Jan 1st. You can get a fixed rate just about anywhere. Online lenders are fine; speak with a mortgage broker as well, they have access to multiple portfolios. 

@Steve K. - if you reside in the duplex, it is not an investment property for lending purposes. As a duplex, you'll pay a slightly higher rate, but barely noticeable. 
What is your reason for getting a HELOC as opposed to a fixed rate and HELOC? Ie, fixed rate to cover your current obligations and the HELOC for when you're ready to invest?

@Todd Powell - South Florida may be ground zero for fraudulent service animal tags. There are a number online sites where one can purchase a service animal tag for about $60. In FL, agents aren't allowed to ask details, however associations are given significantly more leeway. Was involved in a sale (as an agent for the seller) and the buyers were clearly lying and tried the "you can't ask that" route and the association called their attorney who responded, "yes, we can". In the end, the seller was rejected (more for lying on the application than anything else).

Know your state's (and if applicable, federal) laws. 

@Jared G. - having read this thread, I'll share several thoughts:

1. Lots of good advice, particularly from @Jay Hinrichs. One of the best parts of BP is learning from others as they respond to questions!

2. I'm from Arlington, if your agent doesn't meet your needs, PM me and I'll provide a list of capable agents. That said, I agree with @Matt K.'s assessment. A friend who owns a brokerage up there used to never give a direct number, always a range. What's not good is the several day lag before responding. A good agent needs to be more attentive.

3. Not sure what you meant by "Baltimore area numbers"...care to explain?
Keep in mind that those are 2 very different cities. One is good for cashflow (DC will never beat Bal'more) and the other is much more steady, significantly less risky and considerably more expensive (DC area). I never mixed the two. Unlike Russell, I wasn't afraid of Baltimore....hell, I remember once looking at a gorgeous place on Federal Hill for under $300k that would have been $800k on Capitol Hill. Not all Baltimore is slum (maybe just 80% of it). 

4. If you're running numbers in DC and frequently getting positive cashflow, you might want to check them again. Prices are such that breaking even is not so bad. Or are you buying in Anacostia?