All Forum Posts by: Alex Dem

@Hayden LaBrie Welcome to the community, I would recommend attending one of the local BP meetups in the area, as they bring good networking opportunity, tons of motivation and great source of knowledge and experience.

Not to forget to deduct closing cost, cost of money ( debt service or opportunity cost ), realtor fees, holding cost ( insurance, property taxes, electricity, water /sewer )

@Rachel Steenland I am in central CT, you can buy a 4plex for around 200k here ( 45k , 20% down ) and it will cash flow. The only problem is population outflow and higher taxes. 

But I believe CT will always be a decent rental market due to the Insurance headquarters in Hartford and mid point between New York City and Boston. 

If you are looking in CT I would recommend New Britain, Meriden, Bristol - other towns like Hartford, New Haven, Waterbury are either very high on taxes or very low on neighborhood class.

@Dave Mosher, we bought foreclosures in the past. Depending on what type of foreclosure that is , there are different resources to find out foreclosure history. CT Is a judicial state so judicial website is a good place to start 

http://civilinquiry.jud.ct.gov/PropertyAddressSear...

Hers is the link, just put the address in - less is more a general rule with judicial website. Just street number and name and town name.

Given it is recorded with the judicial branch, there you will find case details including the total amount of lien that is being foreclosed and the amount of superior encumbrances ( taxes, water / sewer / IRS , etc.)

Usually it will be disclosed in foreclosure worksheet. 

But from what I can see, banks are not in the business of Real Estate and their goal is not to get profit, but rather to minimize bad debt expense.

@Bob Romano  his commission is not paid from your deposit or your side of transaction; in majority of scenarios seller pays realtor fees. 

Who knows what the agents' reasoning is. If he just wants to secure the transaction, he is acting from his interest , not yours. 

Just make sure you disclose the hard money as well. This interaction has to be fair both ways.  Besides,there is cost of money ( specifically hard money ) and you will have skin in the game no matter. 

@Bob Romano, I see how you and your agents are confused. 

Firstly, hard money and even Private money are not cash, other members that have mentioned that are right. It is financing, just on different terms. 

So you should write it as a financing deal, but exclude mortgage contingency from the contract, that tells the buyer that you are confident on getting funds in 10 days.

Secondly, your agent should not dictate you on what earnest deposit has to be, this is totally up to you to constitute the offer terms - agents duty is to submit it to the Listing agent for sellers acceptance / counter or decline.

If your agent is not comfortable working that way, he knows where the door is. 

Now if he is TELLING you what the EMD has to be. If you don't have an exclusive right to buy contract signed with that agent, just let him go, he does not act in your best interest and therefore does not fulfill his fiduciary responsibility. IF you DO have the exclusive right to buy contract in place, speak with your attorney or a broker directly to see if you can get out of it based on breach of fiduciary duty.

Trust me , there are plenty of realtors out there that would want to do business with you the right way!

@Erik Douglas Manchester has a great meetup with guest speakers and good networking opportunities. 

If you are interested, there is a meetup group in Rocky Hill / Wethersfield area, @Stephanie Cabral is the organizer. You can reach out to her to put you on the email list to get updates on dates and times.

Will see you soon! 

P.S. @Scott Hollister Hey, big guy! Great running into you this past meetup! Hope you are having a good luck with your multi search!

@Edward Schenkel I would love to hear more tips on foreclosures, as these are the main deal flow sources for us! 

And special thanks on elaborating on different types of foreclosures, some sources I have researched mention CT judicial state that do foreclosure by sale, others a strict foreclosure state. Now it totally makes sense as it is both xD

I have another question if you don't mind. In regards to foreclosure by sale ( auction sale ). Some towns sell their tax liens to private investors ( reverse bidding starting at 18% annual return) and I am not sure if these liens are still recorded with the town and will be transferred with the title as a superior tax lien after the sale.

Just to give you an example, one auction we've attended showed little to no back taxes on the notice to bidders, but the title search revealed all these prior tax liens with crazy accrued interest.

@Dexter Kubi Hey, neighbor ! I am in New Britain myself. Lovely little town ! 

Welcome to the community, tons of great info here, a true treasure of knowledge and experience. 

BP has been incredibly helpful so far - join the BP meetup in Rocky Hill ( one just took place on the 15th, it's once a month ) or the one @Filipe Pereira goes to in Manchester. it's an amazing place to network, ask questions and find partners! The first time I went to the meetup I saved $20.000 , quite a story ! 

Good luck!

Waterbury market is similar to Bristol, Meriden and New Britain - wrong turn and you should not be here without a gun :)  However there are better areas as well with good fix and flip and buy and hold opportunities.  West End and Yale area are better neighborhoods. 

Biggest issues with Waterbury is second highest mill rate in CT after Hartford, followed by New Britain and Naugatuck, so taxes are pretty high and carrying / holding cost can kill a big part of cash flow. 

I would recommend resources like www.neighborhoodscout.com , www.city-data.com, www.census.gov for initial neighborhood research.