All Forum Posts by: Tony Tomasek

Be careful with making an offer before you nail down the rehab costs. Take a contractor with you and make sure you check their references if you never worked with them before. With structural issues, you could end up with a basket case. At the asking price of 300K this may be a stretch. I would look for a big discount or move on. Make sure that you keep the purchase AND rehab to a max of 70% of After Repaired Value. Better still with structural problems, 50%-60%

Thanks everyone. I appreciate the feedback.

Look at sold comps. If there are comparable houses in bedrooms bathrooms and square footage that have closed in the last 6 months take a range of prices (150k-210K) and figure that the project will sell at the low end. If this still works numbers wise, schedule to see it. MOST IMPORTANTLY, take a reputable, liscensed bonded and insured contractor with you to get a bid on the fix up. Then add at least 15% to that because total remodels can be basket cases. But as far as looking, you will need to look at a lot to get a good feeling for what the market will bear. For example I have just looked at a duplex, that has the room in it to ake it a deal based on ARV, but when I look at comparable properties in the same shape they are 10K less.

John Alexander has a course on this, not bad info, google it and get a copy of the information and beware the pitch to get into coaching. You just need the info and the time to set it up.

I am picking up some properties and am considering going Section 8. Other than being very rough on the property, what do I need to look out for? I am having a hard time finding info regarding the program in general. My investments will be roughly 20K per property and the areas will be borderline. let me know your thoughts

My father and I sold 2 properties on notes back a few years. It worked out well over all. We didnt take either back and were paid off on 1 in about 6 years. The problem that I see is that we are living in a very inflation prone environment. Your note is not a hedge against this inflation at all. If some people are right double digit inflation is on the way. This would negate your 9% interest. Every year your money is worth less in this form. The dollar is a currency and therfore losing purchase power is inevitable. Holding as a house would be a hedge. My advice is to take the note and keep an eye on inflation, if you see inflation gearing up, sell the note and move it into any hard asset as a hedge. Also, talk to a note buyer to make sure that you structure your note so that it is readily sellable and you arent stuck with it.

What are your exit strageties for these and of course the ARV/ Purchase price etc?

Did you find an investor through this site or through a private connection? Just curious. Please let us know how this proceeds and congrats on thinking big and having the moxy to pull it off.

As far as finding deals, there are many ways. Funding them is almost as infinite. The key is the motivated seller. There is an abundance of them here. The two that I look for are those offering owner financing and hard money sources. What do you do in the UK? I'd be glad to discuss this further. Do you buy and hold or flip? Wholesale? Some strategies take little of no funding if you have a buyer's list to market properties to.

I agree with Michael here. Look for deals with the infinite return like he is finding. It's quite possible. Good luck