Wholesaling as a way to begin investing in Jacksonville

4 Mar

Wholesaling JacksonvilleThere are good wholesalers out there, it’s just most of them are not. Anyone who says wholesaling is an easy way to start is mistaken. There are thousands of realtors, rehabbers, and landlords all competing for the same properties. You not only have to get to these properties before any of these people but you must also get a larger discount on them. That’s where your profit comes from. The good wholesalers in my area have years of RE experience and more knowledge then most other investors. All are real estate brokers and most have other credentials such as being a general contractor, mortgage broker, home builder, rehabber, and/or landlord. As far as I know none of them started out as wholesalers. Only one of them focuses almost exclusively on wholesaling.

That said if you can find deals you’ll have no problem selling them. People will be jumping all over themselves to get. They’ll offer full price, cash offers with no contingencies. If they are not you don’t have the right property or the right price. If a property has no decent recent comps though most investors will not deal with it. You have to avoid those properties since your buyers will do the same. With out reasonable comps it is very difficult to place a value on a property.

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Using FHA “Kidde Condo” Loans to Purchase Invesment Property in Jacksonville

19 Jan
Buy or rent

Buy or rent

I just learned about a new way to use the FHA to purchase investments. The most common use of “Kiddie Condo” loans is to help your kids purchase a condo while in college. The thing most people don’t understand about them is they are not just for your kids, the person does not have to be in college, and the property does not have to be a condo. It also does not have to be in a different town as some people believe. The person does have to be a blood relative. I heard of a niece helping her 97-year-old aunt a home. The loan is structured just like any other FHA loan, only 3.5% down and lower rates than on an investment property, but one person will have the credit and income to support the mortgage and the other does not. Both people go on the deed and mortgage. For this reason you need to make sure you can trust the person. It is also required that the co-borrower is going to occupy the property but there is no specific time that they must occupy it.

An example of using this to invest would be to purchase a home for you child in college and then when they graduate using it for a rental. You can obtain a much higher loan to value this way as compared to an investment loan. Even if they just lived in it for a couple of months or a year the occupancy requirement would be met and you could have a great rental with very little down. While your child is there you could even have them rent the other bedrooms to cover the mortgage thereby providing them a place to live with no money out-of-pocket. An even more powerful way to use this program would be to purchase a multi-unit property, duplex, triplex, or quad. Many areas in Jacksonville have these type of properties including Riverside, Avondale, Murray Hill, San Marco, Orange Park, and the beaches. This way not only could they be living rent free but you could also be MAKING money that could help pay tuition. Just make sure that your child is not going to run the place into the ground, lol.

As I said before they do not have to be in college so you could do this for a child who has a job but doesn’t have the income to buy a place on their own. You could also do this for your grandkids, niece, nephew, cousins, or any other relative. It could be a good way to get your kids or whomever into real estate investing. It will also allow them to build good credit. This program certainly isn’t right for every situation but in the right circumstances could be very powerful. It’s one of the few ways to get such a high LTV on an investment property. If you’d like to find out more about it please contact me on my website at DuvalREI.com.

Do You Need a Real Estate “Coach” to Get Started Investing?

14 Jan
Sleazy Guru

Is this who you want to learn to invest from?

I stongly disagree that spending anywhere from $10,000 up $100,000 on a real estate coach is the way to begin you investing career. In fact doing so may ensure that you never get started. I’m sure that some coaches can provide a lot of benefit but the kind of money that some of them charge is just insane. With that much money an investor should try to do a small deal themselves. I researched real estate for years before I made my first investment and I feel like I learned just as much or more in a couple of months from doing my first deal.

You can learn plenty from books, forums, and local real estate clubs and I have found most investors love to talk about what they do. I read somewhere that you should year intensely for a year and then make your first buy or you are over analyzing. With this education you should be able to get a couple deals together and then decide if you need or want coaching. A more experienced investor is more likely to make a good decision about what coaching they need then a newbie.

How to Handle taking Vacations as a Jacksonville Landlord?

7 Jan
Thai Sunset

Thai Sunset

I have a handy man that I can count on while I am gone and I travel quite a bit. I actually went to Thailand for three weeks this year, I purchased a Thai sim card and gave my guy the number but I never used it except to talk to family. We actually had a tropical storm that hit during this time and he was able to handle everything including some flooding in two units without getting me involved.

I also trust him to show apartments and get applications. If I need to I will fill out the lease and have him get it signed. He seems to have a knack for selling people to boot. All in all I really recommend finding someone you can trust that knows what they are doing, they are worth their weight in gold. It also costs much less to have this guy when needed but not have to pay a management company. It’s the best of both worlds.

The one time I try not to be away is right after the first of the month as I like to make sure I get all my rent on time and post notices if I don’t. I have been able to manage that while away also. I think being a landlord provides more freedom to do what you want then almost any other small business. I used to manage restaurants and that was much more of a pain to handle while traveling and any long trips would be out of the question.

It’s the same deal though if you have good trust worthy people your business will run itself most times. If you have bad people you’ll be pulling out your hair 80 hours a week and still won’t have it run properly. This is true in Riverside, Avondale, Jacksonville or anywhere else for any business, and at any time

Choosing a Real Estate Brokerage as a New Agent in Jacksonville

3 Jan

Keller Williams Jacksonville

Keller Williams Jacksonville

Personally I don’t find companies that charge a large monthly fee to be attractive to the agent first starting out. If your already successful and are doing multiple deals a month a company like that where you pay $800 a month and get 100% commission would be great. I also don’t think going to a no frills no education type place is good for new agents either. You need someone who is going to provide you with some training and some decent systems. That said I don’t know what exactly Re/Max offers and I have only been with Keller Williams.

I used to work for them and have just stuck with it. They offer training everyday and a great paperless transaction system, marketing system, and contact management system. They pay schedule hits about middle of the road. 25$ a month, 70% commission till $18,000 in company dollar and then 100% from then on. The board of realtors offers quite a bit of training also so you may want to check with them.

If you might be interested in talking to a broker send me an e-mail they are not just in Jacksonville but are actually nationwide. If your not you should certainly check out “The Millionaire Real Estate Agent” It is written by Gary Keller who is the Keller in Keller Williams. It like a business plan for successful real estate agents. This is just the tip of the iceberg on what they offer in their training including internet courses if you can’t make it to the office.

Also finding what niche your likely to focus on is a great step that most agents never consider.

Video

Light my Christmas – It’s going to be a Doors Christmas

24 Dec

It’s a family tradition. Mother ….. I want to buy this. Have a Merry Christmas 😉

Real Estate Investment Networking Online

23 Dec

I have recently become active on a national real estate investment forum. Before I just read everyone else’s post but I have been actively posting myself now for a couple of months. I have found it to be a big help. Not only do I get to see issues from multiple sides but it actually generates business. I have had not only customers but also potential business partners contact me through their colleague feature. The site is called Bigger Pockets and is one of the most professional of the real estate investing forums I have come across. If you have any sites you use and would like to recommend please leave a comment. I know some people are actually reading these as I have had two separate people tell me they did.

online business networking