Real Estate Investing: Step by step guide to generating off-market deal flow (broker edition) |
- Step by step guide to generating off-market deal flow (broker edition)
- How do we get to this level? lol
- Do we have to honor an agreement that was never disclosed to us?
- How to research cap rates for out of state investments?
- Lease to purchase help
- Pros and cons of putting investment property in wife’s name
- Sell or Rent First Home
- Anyone have experience in crowdstreet, realtymart or fundrise?
- First flip - Need help structuring Seller loan
- Sacramento housing market
- Real Estate Career Opportunity
- What to do next?
- USING BUSINESS CREDIT TO BUY YOUR FIRST PROPERTY ?
- Finding a tenant
- Great opportunity to build on an acre of land in southern cal but I have a dilemma and in need of advice
- Buying land and building small cabin/treehouse for short term rental
- I wonder how many banks are processing home equity loans on those inflated home prices during this years long middle class squeeze. Would be interesting to know...
- Bank financing versus seller financing SFH investment
- Minimum Home Amount for Mortgage
- What are your thoughts? Red flags?
- Renting/Leasing farmland and house
- Low FHA Appraisal.... What do we do now??
- buying land zoned Agriculture
- First time home buyer/investor needing advice.
| Step by step guide to generating off-market deal flow (broker edition) Posted: 24 Sep 2020 11:16 AM PDT Off market deals are those not listed to the general public. These deals are typically superior due to limited competition. You get access to these deals by going direct to owner (more likely) or through broker networks. I will be focusing on the broker network in this post. These brokers you're contacting have buyer lists. This list is tiered. Top tier buyers see the deal first (reputation of closing). If they pass, the next tier gets a look, and so and so forth. You can see how the worst deals get filtered to the bottom of the tier list. The name of the game is to work your way up this tier list. Here's a step-by-step guide on how to do that. 1. Email the top 15 brokers in the area that focus on your asset classIn this case "top" means most active. You can gauge this by transaction volume in the trailing 12-24 months. These are the hustler's. They are the ones with the deals. **Having access to CoStar makes this very easy. If you don't have access you can find these brokerages via google. Look for the firms that focus on your asset class. Search "asset class" + "brokerage" PRO TIPS
2. Follow brokers on socialThis will provide you with an opportunity to engage, learn interests, and will help keep a pulse on their work. Also, if you post productively they will see that you are a serious investor. PRO TIP
3. Make your follow up call2-7 days following your initial outreach. Give the brokers a call. Whether they responded or not. This is part of the relationship building process. Easier to convey to personality on the line. Also, gives you another excuse to chat. 4. Create a system to track follow upsThe best deals will take time. It typically takes 5-7 touch points to get the good stuff. If you build a relationship organically and continue to stay in front of them you will see good deals. PRO TIPS
5. Uncover new brokers and repeat the processAs you educate yourself and have conversations you will uncover more brokers. The low-key (but active) brokers are usually great connections to have. 6. DEALS!Continue this process and you will uncover deals the fly-by-nights are not looking at. This is already an advantage. Understand this will take patience. You will be shutdown and ignored. Keep pressing (politely). Why volume of deal flow is so important It's a numbers game. The lifeblood of quality deals stems from consistent deal flow. The more deals you see the more efficient your underwriting. AKA the better your ability to pass on mediocre deals. Once you're confident you have consistent deals in the pipeline, you will have no problem closing the door on that average deal. [link] [comments] |
| How do we get to this level? lol Posted: 24 Sep 2020 06:10 AM PDT |
| Do we have to honor an agreement that was never disclosed to us? Posted: 24 Sep 2020 01:25 PM PDT We bought a duplex with some raw land and the owner did not disclose that he had a 2 year contract with a farmer to use that land. It's fine, but I wanted to sell it off. Nothing about this is in our purchase contract. Do we have to honor this? [link] [comments] |
| How to research cap rates for out of state investments? Posted: 24 Sep 2020 05:56 PM PDT Hi folks, I'm researching multi-family investments in out-of-state regions, since my local region is too expensive. I'm planning a buy-and-hold strategy. I've identified 5 different cities that interest me, but obviously have to choose one. Knowing the cap rates for each region would certainly help me narrow it down -- and quick! I've looked on the popular realty websites but they don't reliably list all the due-diligence info I'd need. I realize this is something that my agent could help with, but since I haven't identified my target region yet, I don't have an agent yet. Are there online (or other) resources you'd recommend for finding this info? Thanks! [link] [comments] |
| Posted: 24 Sep 2020 06:00 PM PDT Hi all, need your esteemed guidance. couple of years ago we got into a 4 year lease-to-purchase property with two old houses on a a prime location. Monthly lease payment is 3 times the rent we actually generate off the property. Our plan was buy at the end of 4 years and hold for a while. We know the annual taxes going to be extremely high when we purchase the property. Given the current COVID situation, appetite for commercial properties are slowing quite a bit and we are looking at what options we have. Any ideas that you folks can share would be greatly appreciated. [link] [comments] |
| Pros and cons of putting investment property in wife’s name Posted: 24 Sep 2020 05:21 PM PDT Title pretty much says it all! I heard there may be some benefit to putting a house in a wife's name, any tips or advice on personal experience would be appreciated! Location: New York [link] [comments] |
| Posted: 24 Sep 2020 11:15 PM PDT Hey everyone, I've been reading/watching a lot on the subject, but my wife and I are having a hard time making up my mind on the direction we want to go. I own a home with about 110k left on Mortgage that will sell for about 210-220k in this market. It's a bit of a crazy area with low inventory and multiple offers going for every home. If my wife and I sell, we pocket 85-100k. If we rent, I project we could take in $1100-1200 and our mortgage is $920 (15 year fixed 3.25%), so close to a couple hundred in cash flow, plus a decent amount of equity. We're at a crossroads of choices, so maybe some outside opinions would help. 1) Plan on staying in the house for another year until we have enough for 20% down on a house we love, and purchase a second, bigger home to raise a family in and keep the first as a rental. 2) Not sure if this is entirely possible yet, but find out if we can find a cheaper property to live in, put less than 20% down if possible, and fix up for a year or so, while keeping the first house. Then, we buy a third house... and rent the second... and so on. 3) Sell the first home for a nice profit, and use it to get a multifamily property, which from what I've read, make more money because maintenance/upkeep is more consolidated. We'd have to live in one of the units until we save enough for another place. 4) Forget all of this and sell the first house now, use the money to get a nice house that we love with an affordable monthly payment, and focus on building real estate or other investments later. As I type this out I realize this is probably more of a personal decision than an investment decision. We have a baby and there's some appeal to just getting a nicer house and not moving around a lot. I have a decent job with low 6 figure pay, so we can save up pretty fast because our monthly expenses are low. I guess the question my wife and I have to truly answer is, are we wanting to work on a real estate empire now, or live a nice family life with my enjoyable and well paying 9-5 job and invest after we are in a home we love. But any insight on the investing side of things is very appreciated! Thanks! [link] [comments] |
| Anyone have experience in crowdstreet, realtymart or fundrise? Posted: 24 Sep 2020 07:45 PM PDT Just wondering if anyone has any experience in crowdstreet, realtymart, or fundrise? Seem too good to be true. Thanks! [link] [comments] |
| First flip - Need help structuring Seller loan Posted: 24 Sep 2020 01:37 PM PDT So my buddy and I are taking on our first flip project and the seller really wanted to get their price, so we negotiated that we will give them their price, but they will loan us 100K right after closing to fund our rehab, 0% for 12 Months, then prime rate + a few percent if we don't pay back within 12 mo. How would you structure this? Would you give a second position deed of trust? (first being hard money) OR would you go the route of them putting a lien on the property? And if option 2 how do we do that as I know very little about liens? [link] [comments] |
| Posted: 24 Sep 2020 10:15 PM PDT |
| Real Estate Career Opportunity Posted: 24 Sep 2020 03:20 PM PDT Hello RE friends, (Apologies if flair is off: wholesaling is only part of what they do) I don't really have anyone in my life to whom I can pose these questions, so as usual I am turning to strangers on the internet. I have about 8 years of B2B sales experience (subscriptions, industrial equipment, few other things) and before that I worked in restaurants for many years. Long story very short, I am thinking about making a change in my career. I make a pretty decent income for my age (about $125K), I have a company phone and car. Being 28 this is a pretty sweet deal, but without getting into any of the details, let's just say I have my reasons to be looking for a change. I am actually interested in real estate, I've read some BiggerPockets books and I watch YouTube videos on the subject. I'm interviewing for a role right now that is 100% commission for a home-buying company. Basically (and many of you are probably already familiar with companies that do this), they qualify leads, check title stuff, look for older or distressed properties; people who are looking to sell quickly. Then generally within 30 days they try to find someone in their network of investors to buy it and then I would make a percentage of the difference. Pros: I think this would be a fabulous way to learn about the real estate industry and see if it's really for me, and if I can really hustle and figure out ways to make deals, there's potential to make a good income. I am in DFW Area. The company in question is also a growing company so there could be future opportunity there. Cons: I have never worked a 100% commission job before. Generally speaking it takes time to build up a rhythm in these types of roles and of course you never really know before going in how much support you're going to get from the company (warm leads, office staff, who knows what else). Also, since I currently have a company car, I'd have to buy a car. In other words, for a few months, I'd have a lower income and higher monthly expenses. Not sure if I'd get something used and finance part of it or if I could manage to find something that I could buy in cash, but it might be stupid to buy in cash since I only have so much cash and I'd probably have to use those dollars to pay rent and buy groceries - would be better off financing the car and paying it off later if I have the means (keyword: if, but assuming when). From talking to the recruiter and the President, they're both saying they think I'd be a good fit for the role based on my sales background, phone skills, mathematical/analytical skills and willingness to learn the industry. I haven't been offered the role but of course I'm going through the motions/interviews and I want to try to be prepared for what to do/say if I get an offer. Did any of you start out in a role like this? What are your thoughts? Or, do you run a company like this and what advice would you give to someone considering this role. I'm 28, married with no kids, but we depend on my income (wife works part time at a retail store) so it would be a risk for me to make this move. [link] [comments] |
| Posted: 24 Sep 2020 08:17 PM PDT A little bit about myself... I'm 25 years old, from the SF Bay Area. I work in tech as a web developer. I make about $92k per year. I recently bought my first property this year, right before COVID hit. Thankfully, I'm still working full time. My property is a townhome in a city about 30 minutes from SF. I bought it for $320k with 6% down payment using a conventional loan (3.75% interest). My mortgage is $2,100 including PMI at $140 per month. I have an HOA payment at $380 per month that includes garbage and water. I bought this place as a starter home and as future rental property. I want to get out of this home within the next 3-4 years realistically to upgrade to a SFH at around $600k. I guess I really don't know what I'm asking here... other than advice on how to get there. I'm able to save about $1,200 a month consistently after paying all my bills each month. I currently have about 10k in the bank. I don't have a plan on how to get there, or what to do to get there quicker if possible. Any advice or clear first steps I should take? [link] [comments] |
| USING BUSINESS CREDIT TO BUY YOUR FIRST PROPERTY ? Posted: 24 Sep 2020 03:24 PM PDT Is this possible? Starting a business with the sole purpose of gaining access to business credit to purchase your first rental property ? Has anyone here done it ? Elaborate [link] [comments] |
| Posted: 24 Sep 2020 02:20 PM PDT How long on average does it take you to place a tenant? I know right now we're not in an average situation. I put a condo in a MCOL & high demand area on the market about 2 weeks ago and haven't gotten as much traction as I was hoping for. Most of the people who have been visiting and applying have had less than 500 credit score with bankruptcies etc and pretax monthly income less than twice the monthly rent. [link] [comments] |
| Posted: 24 Sep 2020 02:05 PM PDT I have an opportunity to purchase a duplex that is on an acre lot zoned R15 in SoCal. The dilemma is I don't have the cash to be able to build anywhere close to 10-13 units which is the plan . How could I go about getting something like this done ? The property(duplex) is being sold to me for 330k I'm looking to build individual bungalow units but I'm looking at costs of a million plus easily . I've never undertaken a project like this but it is my dream to make something like this happen but I really need sound advice as to how it can be done considering I have enough cash to purchase the property with 20% down and make the monthly payments on the mortgage . Helpful advice needed thank you guys [link] [comments] |
| Buying land and building small cabin/treehouse for short term rental Posted: 24 Sep 2020 08:51 AM PDT I'm wondering if anyone else has looked into this idea. I currently live in the country and there's some land directly behind my house that has been for sale forever. It's landlocked timber so I think I can get a good price for it, and would like to build a very small off the grid cabin to use for a short term rental. We live just outside of a medium sized metro (about 20 min to downtown of a 700k pop size) and there's nothing like this around here, so I think the market would be pretty solid to pitch as a short off the grid weekend getaway sort of a thing. Ideally I'd like to do a treehouse as those are super in right now on Airbnb and I know I could charge more for the novelty of it, but I know I could 100% do a small cabin DIY. Anyone ever look into/actually do something similar? I own two traditional SFH rentals but have no experience in short term rentals. [link] [comments] |
| Posted: 24 Sep 2020 08:57 AM PDT |
| Bank financing versus seller financing SFH investment Posted: 24 Sep 2020 10:29 AM PDT Terms and rate in owner finance SFH Hey all! I'm looking to finance a property with the seller directly. This is the first time I'd use owner financing. I'm wondering if I'm missing any considerations. DETAILS; Property is a SFH locates in the Midwest built in the early 60s and is a recent flips it originally listed for 245k on market almost three months ago now at 210k it doesn't have a garage or a paved driveway yet even at 210k it's among the top comps in neighborhood that do. I was told by my traditional bank lender they'd need 30-40% down, along with six months reserves. That would mean 70-90k of capital tied up. Where the seller will entertain a 10-15k down offer. We have yet to discuss terms and rates. I'm wondering if y'all could help me with pros and cons of obtains traditional vs going with the owner on this one and what sort of terms and rats you'd find agreeable to. Thank you all and please let me know if you need more details. Thank you again! [link] [comments] |
| Minimum Home Amount for Mortgage Posted: 24 Sep 2020 04:24 PM PDT I recently put in a pre approval request for an investment property for $150K with a large national lender and they told me that was too low. They told me the minimum amount would be $200K. Is this a rule that I didn't know about? Does it vary by lender? [link] [comments] |
| What are your thoughts? Red flags? Posted: 24 Sep 2020 10:38 AM PDT I've been interested in this multiplex located in SoCal. Seller asking $1.8M and it's been on the market since June with only one offer that came to the table but was revoked due to "buyer not interested". It's listed as a 4-plex with an additional garage converted studio that was done "prior to seller owning the house", meaning it was completed without permits. The lot contains two buildings. The main building contains 3 separate units and the back building contains a studio above the garage converted studio. In total 5 units. Now here's the kicker: the place is listed as a duplex not a multiplex on county/city records. I've checked the local city planning offices and they don't have any building records or permits of the extra units in the main building. It's just listed as a single family dwelling with a studio in the back above a garage. The studio above the garage has permits for occupancy and is legalized. Duplex's in the area go for around $900k-$1.4M depending on their features/characteristics. Seller's agent says "they have" building permits for those extra units but I haven't seen anything on file on city's records or from my discussion with city planners. Seller's agent also said they have submitted plans for legalizing that garage converted studio into an ADU and owner has already put in $10k for applications but city planners have told me that the garage converted studio in question will have to be converted back to a garage due to not conforming to the zoning requirement and additionally there are no permits taken out for an ADU conversion on file for that property. The owner has been using this as a rental property for years so I'm guessing they are just looking for an all cash buyer. My question is would an offer that is centered around a duplex rather than a multiplex work? What are your thoughts? I'm simply curious. [link] [comments] |
| Renting/Leasing farmland and house Posted: 24 Sep 2020 08:17 AM PDT I recently inherited 60 acres of land (50% pasture) and a 4br/2ba house in rural East TN. I have been living in the house, but due to the commute, I need to move out and rent this property. My first thought was to split the house into 2 units (it would only require putting a lock on the stairs to make two 2br/1ba units), and leasing the land separately. A family member mentioned renting it all together, which I hadn't thought of. Has anyone leased these kind of properties before, and do you have a preference? Thank you! [link] [comments] |
| Low FHA Appraisal.... What do we do now?? Posted: 24 Sep 2020 01:09 PM PDT List: $325,000 Phoenix AZ Our house received multiple offers over asking price. We accepted an FHA offer at 335,000. And they waived inspection. (we only recieved FHA offers) The house just appraised WAY low at $306. Both realtors are shocked and not quite sure how he came up with this number. I know this will be on file 6 months. I'm not willing to sell for 30k less than multiple offers we're willing to pay... Do I put it back on the market and wait for a Conventional offer? How much will Time On Market hurt the ability to sell? (4 weeks) Pull it off the market? Rent it out for a X months/ year and try again? Anything I'm missing regarding strategy? [link] [comments] |
| Posted: 24 Sep 2020 05:31 AM PDT I am exploring an idea of buying land with couple of friends in Tampa suburb zoned AS-1 to hold for Planned Budget with 50% bank loan: 1-2M, 10-20 acres. [link] [comments] |
| First time home buyer/investor needing advice. Posted: 24 Sep 2020 02:17 AM PDT Hello. So I am finally ready to purchase a home and I would to do so before the year ends. My goal is to buy a duplex and live in one side and rent out the other. I've been searching on Zillow, but all the duplexes seem very overpriced considering they are not very nice. So I was wondering if it is a good idea to convert a single family home into a duplex, or is it better to fix up one of the not so nice duplexes? (Also I live in San Antonio, TX and am wanting to purchase on the east/south east side, does anyone who is familiar with San Antonio think this is a good location?). Another thing I need advice on is what steps I should take to get the process going. I've already saved for a down payment, I've been in contact with a realtor (who told me to contact him when I'm ready to make a move), I still need to get a loan, but not sure I should wait till I'm more familiar with what I will be purchasing? And Im not sure what else needs to be done... Thanks so much in advance! All information and advice is greatly appreciated. [link] [comments] |
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