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Updated over 6 years ago, 06/15/2018
My realtor keeps bringing me smoking deals
ok so my realtor keeps bringing me deals which are awesome deals how ever she requires proof of funds and me and my business partner dont have the cash up front right now so im looking for some help
#5 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Erie, pa
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#5 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Erie, pa
What are you considering to be a smokin deal
How much money we talking?
The purchase price is $85,000 but i can get it for $80,000 or less right now its a 1 bed 1 bath but it can easily be updated and turned it to a 2 bed with an addition and the avr is $260,000 for this area and its an excellent area and can deff sell extremely fast she sends me these deals at least once a month some good some ok but always at least one thats smoking
Damn. Im getting deals for my clients in the Bay Area with few hundred k's in return. Properties that have at least $500k spreads on them. Love California.
#5 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Erie, pa
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#5 General Landlording & Rental Properties Contributor
- Rental Property Investor
- Erie, pa
260k wow a 1bedroom 1 bath here is like a 30k house lol
Must be some amazing area you are in
Originally posted by @Dennis M.:
260k wow a 1bedroom 1 bath here is like a 30k house lol
Must be some amazing area you are in
Prices in Erie, PA are definitely quite a bit different than places like Boston/NYC/Chicago/DC/SF/LA...heck even certain areas of the Philly market are starting to be stupid priced now.
It's a flippers paradise right now,,, so long as they don't get caught on the wrong side of the market turn. I doubt it will be as bad as 2008...but it will happen.
@james masotti It's so funny that you say that because we were just talking about the market turn yesterday at my local reia meeting and I was explaining like it is at Its peak and about to turn so my plan is to flip this particular property as soon as possible just to create enough capital to then invest in a multi families because at least by doing that Having flow every month it will supplement the Down turn Because in my market that's pretty much what does make sense And yes it's a pretty nice area but I gotta say the deal is good due to the fact that we got a distressed property owner so it almost just fell into our laps 98 % hard work and positivity 2 % luck lol
Wow @ramsin jacob That's awesome that your getting deals for those type of returns Now I'm not sure about your particular market but from my understanding what I have been told is that your market is flooded with competition where is my market doesn't have that much competition so the rate of getting more deals is a lot more then getting one great deal so it might even work out to being the same in the long run however again I'm not sure I'm only basing my knowledge off of an investor that lived in California move to Massachusetts and started investing out here But then again he could be wrong as well But I guess the point is no matter what market ur in as long as you're making some type of money and helping people that's all that matters And a definitely congratulations to you brother
Originally posted by @Chandler Roman:
@james masotti It's so funny that you say that because we were just talking about the market turn yesterday at my local reia meeting and I was explaining like it is at Its peak and about to turn so my plan is to flip this particular property as soon as possible just to create enough capital to then invest in a multi families because at least by doing that Having flow every month it will supplement the Down turn Because in my market that's pretty much what does make sense And yes it's a pretty nice area but I gotta say the deal is good due to the fact that we got a distressed property owner so it almost just fell into our laps 98 % hard work and positivity 2 % luck lol
If by multi family you mean the small 2-4 unit you can buy in Boston Metro than yes...you'll have very little cashflow but you can cross your fingers on long term appreciation. Not my cup of tea, but Boston has a lot of great things going for it that in the long run I think you could make it work.
If by multi-family though you mean a 5+ building that you're presumably going to look for in the Midwest or South...it's in its own bubble as a disturbingly large number of people who made bank in the last 10 years of the up market are shifting their focus to a larger scale asset and are purchasing these distressed properties which is driving cap rates down because people need a place just to park their cash.
It's also why you're seeing so many syndicators out there right now.
Challenging times ahead for certain. I'm not stopping buying, but I'm definitely more cautions than I have been over the last two years of active acquisitions.
That's awesome Chandler I hope you get the help you need , keep us posted would love to see how you get through this . Good luck!
Are you looking for a hard money lender?
@James Masotti The 5+ multi family market is a disaster right now. I've spent the last four years doing a huge amount of multi family closings and they've come to a screeching halt. The only buildings available are either way over priced for the neighborhood or they need a full gut rehab. A great building at a reasonable price popped up on the market the other day and by the time I called the agent they had multiple cash offers.
Anyone looking to get into multi family can still find a nice deal if you focus on 6 unit buildings. I don't know if it's the case for everyone, but I know my clients can get a non recourse loan if they buy a building that's 8+ units. If they buy a 6 unit building, they have to sign a recourse loan. For that reason, they only jump on the 6 unit buildings unless they have crazy cash flow or can buy a group of buildings. For a newer investor, that building could have nice cash flow and be a good starter building with less competition.
i here you @bob floss that happened to me a few times as well, the moment its on the market thats it! its a free for all ! But as im sure you already know..... hey you never know! put an offer in any way some times the person that made the original offer backs out and you could get a call a week or 2 weeks later saying they'll take your offer so hey you never know but just never give up
You should always have proof of funds or a pre-approval letter to avoid wasting peoples time. I wasnt aware the ARV for a 2BR in NB is 260k, seems really high for that area. @Larry Turowski you've done a flip down there what do you think ? The numbers looks incorrect to me
Im sorry @redgy saint-germain even though i live in new bedford the property im investing in is not in new bedford so yes the price points may seem a lil high I don't know if it's my fault and I said that I am investing in New Bedford or if maybe you've assumed that because I live in New Bedford that's where I'm investing in either way my apologies because that's not the case of course I would most certainly do my due diligence before investing in a property And the last thing I wanna do is waste anyone's time Especially someone who's loaning us money or even my realtor who works hard for hers i guess all in all what i was asking for was when i had put this post up was help finding a good lender which since then we have found one so thank you I guess I just didn't really express myself correctly so my apologies
Looking at comps. $260K is at the very top. Only one two bedroom, out of 31 sold, have sold for $260K+ that in the last 3 months. Quite a few in the $230K-$240 range, depending on the area. If it's in a surrounding town, like Dartmouth or Fairhaven, it's easily be in the $260K range.
Im sorry @redgy saint-germain even though i live in new bedford the property im investing in is not in new bedford so yes the price points may seem a lil high how ever im not sure if i Implied the flip is in new bedford I don't know if it's my fault and I said that or if maybe you've assumed that because I live in New Bedford how ever that's not where the property is I'm investing in a diffrent area altogether either way my apologies because that's not the case of course I would most certainly do my due diligence before investing in a property And the last thing I wanna do is waste anyone's time Especially someone who's loaning us money or even my realtor who works hard for hers i guess all in all what i was asking for when i had put this post up was help finding a good lender which since then we have found one so thank you I guess I just didn't really express myself correctly so my apologies
The area is actually Warwick ri
So you buy at $80K and sell at $260K. And your realtor "...sends me these deals at least once a month..."
Your profile says you are a contractor. You should be making $15K/month like every other contractor out there in this insane real estate raging bull market. Save for 2 weeks and you'll have POF.
JUST BUY IT and make a MILLION a year!
@Chandler Roman I have to agree with the sentiment of @Chris Martin. I don’t know what your definition of smokin’ is but deals are hard to come by. I’m skeptical. There would be investors all over these if they were even just good deals.
As I heard someone say once, your head is over your heart for a reason. Don’t get carried away. Good luck.
@chris martin @larry t Ok this for me is a clear lessoned learned before i reach out and look to ask for help i have to be extreamly clear with what i am asking for or looking for so yes i am a contractor and i do make good money i wasnt trying to boast or try to make my self look like something im not either i realize now i didnt express my self clearly and i appologize for that because clearly some people are taking what i explained wrong I may be coming off the wrong way but that is clearly not my intention how ever all i was looking for was a good hard money lender in my area thats all nothing more nothing less this deal is an off market deal she brought to my attention And what I consider to be a smoking hot deal others may not feel the same way because you may be more seasoned than me and you may consider a smoking hot deal a 2 million dollar deal So this is all about a matter of perspective and experience also fellas im not claiming in any way what so ever to be a seasoned vet when it comes to investing either and from what i have learned its alot better and smarter to invest with someone elses money and partner up with someone who knows more then me so that i can get to a place where deals look better from a different perspective plus if the investment is right of course do it and if it makes sence then great move forward and if not then be smart and pull away its all common sence and i do realize this there will always be a deal out there
Originally posted by @Chandler Roman:
ok so my realtor keeps bringing me deals which are awesome deals how ever she requires proof of funds and me and my business partner dont have the cash up front right now so im looking for some help
are you looking for an investor to front the cash? How do you plan to buy the properties all cash? Maybe see if a hard money lender will provide you with a pre-approval. An offer is not worth presenting to an owner without backing of the buyer's ability to actually close the deal which basically means showing you have at least the initial deposit/downpayment in your bank.
