All Forum Posts by: Adrien C.

I would send out a typical wholesaling letter saying you'll pay cash, As-Is, etc. the motivated sellers will contact you. Based on the property condition and their asking price vs value, decide if you want to wholesale it (assuming you know what to do there and can get a quick cash buyer) or if the numbers don't work for that, offer to list it for them. I just sent out 200 letters, had 11 responses. Some were the typical grumpy person asking to be taken off the list, and 5 wanted to sell. Unfortunately for me as a cash buyer, only 1 came close to a wholesale deal. The rest I gave my realtors name since the houses were decent and they wanted retail. 

google "yellow letters" and you'll learn a lot about this marketing technique. 

I'm all in at $50K. Rents at $12K. Interest on private loan, taxes and insurance are $8400. The other $3600 covers vacancy, maintenance, CapEx, etc. Although young roof and new HVAC so not concerned about major maintenance early.

I'd only keep it because I can refi soon and the $35K equity. 

This property is nearly move-in ready. It has new carpet, fresh paint, and new high efficiency HVAC and H2O heater. Large living room and large family room with wood fire place. Kitchen and bath are dated but usable. This is a great rent-to-own property.

This is an off market property. I will double close on it with a cash buyer.

It's ARV is $85/90,000 and again needs anywhere from $0 to $8000 depending on what you want to do. If I keep it, I'm marketing it as a rent to own for $75K. They can update as they desire and earn the built in equity. Rents in this area are around $1000/month. The grade school is 1/4 mile away.

Call 219-237-9088 or email [email protected] for more details.

I'll look into that - thanks

also, managing the property myself saves about $2000 so that's a thought. It's 20mins from my office so no big deal. 

@owen 

@Owen Dashner yes that would be my intentions. I was going to wait 12 months so I could do a refi and even pull money out. Prior to 12 months, they consider it a new mortgage and would want 20% down. At least that's my understanding. I have other cash investors that I'll pitch this to at 8%. 

She needs the money as soon as possible (or mom is kicked out of senior home). I don't have time to get regular financing lined up so either I flip it to an investor (and I have several who would take it) or use private money.

What is a better rate for private money with personal contacts?

I have a purchase agrement on a 3/1 in a B+ neighborhood. I can flip it to an investor and make a quick buck or I can fund through a private investor and hold it as a rental. If I do this, I will start marketing it as a rent to own.

The investor would pay $50K and wants 10%. The house is worth $85K. There is no other note on the property. If I rent it out, I'll throw in $2k of basic updates as it has new carpet and hvac/h2o systems. If I do rent to own, I'll market it for $70K and they can earn the equity by finishing the updates them self. Rents are $1000. So after calculating in maintenance, vacancy, CapEx, management, etc, there is very little cashflow for me (like $50/month). If I paid for it myself, I wouldn't do it for this low cashflow. However, because of the equity, I think it might be worth it. I don't have time on this property to get a bank loan as she needs the cash ASAP. My thoughts are to refinance in a year at a lower rate.

Would you do this for little cashflow (yet banking $280/month for the anticipated expenses) because of the equity?

Also, when you are getting private money, what is a typical interest rate you offer? I'm looking to expand my private money lenders with friends/family/past business clients and want to make it worth it for them and myself at the same time.

Thanks

hi- welcome to BP. I'm over in Lake county. Check out www.nicia.com which is the local REI investment group. It meets the 2nd Thursday of each month in Merrillville. NWI is a great place for cash flowing property.