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Hi columbia28,

courts auction tax liens to the lowest bidders? how this works is they auction liens starting at 15% and work the bid down...

Say you purchase a certificate for 1000 that is being offered to pay you 15% at the end of the term which i believe is 3 years? not sure.

I then come in and bid on the same certificate for 14%... if you don't go lower, i win the bid. i am then guaranteed 14% on my investment when it's time to collect.

hope this helps

AD 2005

ok,

numbers!!!!! first let me give you numbers
(karla i hope you're listening)

$450k = asking price
$6000 = Rent roll = $7200 annual = $720k

Here is the sweet deal... (you thought that was it huh)

The property ALREADY has 100% occupancy, so the rent roll is as is right now. From what the guy tells me, no dead beats, good paying tenants.

$50 per unit = $300mth = $3600year
budget = $500 year
misc = $500 year
repairs = $2000 year
water = $800year
taxes = $2000year
heat = ? est. $3600 (six months)
insurance = $2000year incl liability
this all adds up to about $15k annually
mortgage on a property like this is $2850month = 34200year

So 15k plus 34200 = $49,200 annually
Rent roll = est. $72,000annually
net = 22,800 or $1900month cash flow

how's my math so far?
did i miss anything?

what would be my cap rate?

However, he is gun-ho about getting proof of some cash....not a problem, i'll show him some (notice i said some....$16k)

My question to you is do i go with a hard money lender and get the deal....later on (maybe six months) go to traditional loan?

Or should i go to a traditional loan now?

Or should i seek an investor to work with?

haaaeeelllllppppp!!!!!!!!!!!!!!!!! is not a panic button.....just excitement...

i luv this stuff....you know.....the stuff that life is made of....

So i found a couple of properties thru hud which peak my interest. They need a lot of work.... i am meeting with the broker on Saturday to see them. given the location, rental, repair costs; i am in conflict with flipping or repairing. the property is owner occupied policy which means i may have to live there for who knows how long before i sell it. the price seems ok but will verify with broker.

any recommendations when i go see the properties is greatly appreciated.

I notice that this section of the forum is seldom used which gives me the impression that investors don't deal too much with HUD homes....hmm?

AD

Hi Michelle,

what does it take to get all that you are saying into my head....besides time, patience and commitment?

i am ready to begin my journey down the path of many investors. I currently am considering a piece of property which seems promising. Problem is, i know very little about flipping, the location, renting, return on investment, etc. The second problem is i don't want to think and wait about these opportunities and simply act!!

Let me begin with the locaiton of the property. It's a foreclosure. According to the location, houses sell for double the asking price. the property needs minor work (painting primarily). The rental is decent. The economy in this location is where i'm concerned (or should i be?). Not much happens here with regards to business booming. I am afraid of going into this but know that the only way to begin this journey is to jump right in!!!.....

You speak of so much, and i have so many questions....

What is assignment
- why not take the title and handle the costs (closing costs and so on)?

what's the best course of action in a situation like mine?

You said

"IF you have enough profit in your deal, you can offer owner financing to your new end buyer and then sell that seller financed mortgage at closing for the cash you need to 1) pay off your original buyer, and 2) to put a profit in your pocket. Remember all seller financed notes are purchased at a discount (depending upon the terms, buyer’s credit, etc.) ..."

this sounds like a position i'm in.... i may end up with a good spread.

so..
- what is a note buyer, where do i find one (is it a bank?)
- how do i become a pro with assignment (i asked this already)
- what is subject2, L/O

i know, i know (whew!!) ....... but you're great for sharing so much wiht the rest of the community.

LOL..thanks so much for your contributions

AD

Hi Michelle,

what does it take to get all that you are saying into my head....besides time, patience and commitment?

i am ready to begin my journey down the path of many investors. I currently am considering a piece of property which seems promising. Problem is, i know very little about flipping, the location, renting, return on investment, etc. The second problem is i don't want to think and wait about these opportunities and simply act!!

Let me begin with the locaiton of the property. It's a foreclosure. According to the location, houses sell for double the asking price. the property needs minor work (painting primarily). The rental is decent. The economy in this location is where i'm concerned (or should i be?). Not much happens here with regards to business booming. I am afraid of going into this but know that the only way to begin this journey is to jump right in!!!.....

You speak of so much, and i have so many questions....

What is assignment
- why not take the title and handle the costs (closing costs and so on)?

what's the best course of action in a situation like mine?

You said

"IF you have enough profit in your deal, you can offer owner financing to your new end buyer and then sell that seller financed mortgage at closing for the cash you need to 1) pay off your original buyer, and 2) to put a profit in your pocket. Remember all seller financed notes are purchased at a discount (depending upon the terms, buyer’s credit, etc.) ..."

this sounds like a position i'm in.... i may end up with a good spread.

so..
- what is a note buyer, where do i find one (is it a bank?)
- how do i become a pro with assignment (i asked this already)
- what is subject2, L/O

i know, i know (whew!!) ....... but you're great for sharing so much wiht the rest of the community.

LOL..thanks so much for your contributions

AD