All Forum Posts by: William C.

Just because you purchased a property at 30% below market value does not mean all real estate agents are bad at pricing property. In fact that statement leads me to believe you might be overestimating your appreciation, and your purchase at 30% below market. What is property B worth, and how much did you pay? Was it a distressed sale, and did you need to do any work or put any money into it to bring the property up to "market value". Also, can you be specific with some of the numbers on property A? What did you pay? What is it worth now? Based on what info of you haven't talked to an agent? Also, how much is the cash flow each month? It makes a difference in my opinion. If you paid $1,000,000 and it's now worth $2,000,000, I'd say sell. If you paid $50k and it's now worth $100k, I'd probably say hold. And depending on how much the cash flow is relative to the equity you have in the home, that will also determine whether you should sell or hold. So it sounds like you have a good problem on your hands, but the info is a little bit too general in my opinion to give any solid advice. I would agree a market correction is nearing so cashing out is a good option unless your ready to hold on for 10 years for the next peak.

Your credit score is just fine. I think it's been mentioned before but the difference between a 700 and 750 could be negligible depending on the loan you use. House hacking a 2-4 unit using FHA would be a great option and a higher credit score should not affect your rate. Also, there is guarantee it will increase in those 12-18 months. The sooner the better in my opinion. Even if a higher credit score would save you an eight Of a point we are talking maybe 20-30/month. The benefit from being 18 months into the deal with your score now would far outweigh the benefits of the higher score. You would have the 18 months of principal pay down, you'll be 18 months into your amortization schedule, and you would have had 18 months of cash flow. Certainly your due diligence but I see if far too option that people suffer from analysis paralysis and try to have everything perfect before they take the leap when there is usually no better time than now to get started. Iv heard stories on the podcast of people buying 60 homes in there first 18 months. Try to expand your thinking a little And you'll survive Yourself of what is actually possible. Best of luck.

That's good the seller gave you an extension.  Let us know how it turns out.  @Jesse Petrillo Are there agents involved in this transaction or are you working directly with the seller?

Isn't turbo tenant a provider of payment processing?  Venmo is a great option.  It's easy to use and most millennialist are already using it.

@Paul Ronto are you an attorney? Are you sure all personal assets are protected? If i were to accept a rent payment to a personal Venmo account and deposit it into an LLC bank account. Is that any different from personally receiving a check in the mail, and personally depositing that physical check into my LLC account. It's all the same in my book. There has to be contact to a "personal" item at some point, whether it's my hands or my Venmo account. This is also why I'm curious to know if my personal assets are in fact protected even though there is always a pass through my "personal" hands into and LLC.

I mean that I buy and hold properties because they cash flow, not because they will appreciate. The markets I'm in appreciate, but not at California rates. For example I purchased a triplex for $190k. The sellers I bought from paid $190k for is 12 years ago. It's NOI is $3000 a month. Homes are selling at a 5 or 6 cap in the area. Unfortunately my house isn't worth $500k. It's a college town so rents are very high, but prices have not appreciated at a crazy rate. So that's what I meant. I buy properties that NET 300-400 a door and I'm happy if the property never appreciates a single dollar while I own it. I get the principal pay down and all the cash along the way. Value will rise a little, hopefully enough to keep up with inflation. I'm just not buying properties that break even with the hope it's worth more at some point. All my plans assume I sell for what it's worth the day I buy.

Jesse Petrillo who wrote the contact? You, an attorney, or was it your states standard AOS sale? You def should have given yourself the option to renegotiate after inspections, not simply terminate. Our state contract clearly states 3 options. Terminate, take it as is, or negotiate changes based on the findings. Let the seller know you either need them to correct the material defect, or at the very least get an expert opinion. This really shouldn't be a dilemma, this is standard procedure to a home purchase. Are you doing this on your own or do you have an agent helping you with your largest financial purchase to date?

Get an extension.  It's standard to ask for more time if the general home inspection calls for an expert opinion.  One other thing is that your contingency likely requires that you REPLY to your inspections by today.  That doesn't make things final.  It's just proposed corrections. So you can ask the seller to fix it.  Then, depending on the contract they have a certain number of days to respond.  In my state its 5.  Then you would have 2 days to respond their response.  So you actually have 7 days before you really need to make a decision.  Ask them to fix it.  If they say no, tell them you need an expert opinion and ask for an extension.  If they aren't at least willing to extend it definitely walk.  id debate walking if they don't agree to fix it or at least help with the cost.   You need more info at this point though.  Don't panic.  Rely on your agent or read the contract and learn exactly what the contingency states.  Like I said, you don't need a final decision today, you just need a to make some kind of decision, safer to ask for more than is expected and see what they say, then make your final decision.

Has anyone ever purchased a foreclosure from a bank by directly contacting them similar to what is trying to be done here, but prior to it being offered at auction or on the MLS. It's been my experience that trying to contact the owner and or the bank of a property that has been sitting vacant is and exercise in futility. The bank has no motivation to sell under market value. They have a process they follow, they take possession, and they list the home. I get calls all the time from people saying there is a "foreclosure" on my street, can we call the bank and make a super low ball offer because they surely want to give the home away it's just sitting there empty. In my 10 years Iv never heard of one time that the bank entertained an offer let alone even entertained a conversation. Would love to be proven wrong, but from what Iv seen once the wheels of the foreclosure process are turning the bank will ultimately auction it off or list it on the MLS, and do not accept off market offers.

Someone correct me if I'm wrong but it's my understanding there is a system in place that will notify the lender of both loans. It might be only for certain types of loans like FHA but I ran into a similar situation with a client and the lender told me there is a "system" that indicates a loan has been originated on a property. The situation was slightly different, and not 2 loans on 2 houses, but 2 loans on the same house, and different times. For example they were going to refi as an "investment" property because they were going to rent it but their plans changed so they were going to refi as owner occupants and there was record somewhere that they had tried to do the prior loan. Again this was my understanding of the situation as explained to me by my mortgage broker, I'm an agent and don't know the specifics but thought I'd share. If a lender wants to correct me feel free. Hope it works out for you. I'd most definitely be honest, at the very least just run a "what if" scenario by your mortgage guy. Ask him if it would be possible and if you would qualify for a simultaneous purchase of an investment. They can easily run the numbers for your DTI to determine you eligibility.

I'd be happy to help you with your searches. I help other investors in the Philadelphia area. Message me to connect. Thanks.