All Forum Posts by: Sam Alpha

Anil, it may be a good idea to get some experience and make contacts with the bigger names.  If you feel you are getting enough out of it, than paying up the 30% split is worth it. However, most times, after the first few months, it is not worth it at most big names ($3k on a $10k commission, and than you have to pay for all your taxes and fees etc) and a smaller outfit that does a 5% split may serve you better.

Welcome to BP @Hermilo Garcia 

You are in good company here and will get a lot of help and advice.

I saw that you mentioned that you were looking for turnkey properties.  Ideally, that was what I was looking at.  However, I have stumbled upon a fixer-upper and decided to take the risk, given the risk-reward ratio.  Keep an open mind, as C and D properties, in and A area, can sometimes come coupled with great discounts.  Built in equity is a very good advantage to start off with and gives you that cushion.

If you wish to follow my trial and tribulations, here is the link on what I am working on right now: http://www.biggerpockets.com/forums/41/topics/1635...

I am pretty familiar with the Orlando area.  If you have any questions, feel free to get in touch.

@Dean Haack I get what you are saying.  However, if you read the earlier posts in the thread, you may see that my situation is slightly different from what you have answered to.  I do appreciate your response though.

Ty.

@Wayne Brooks you are correct on that.  However, it seems like the bank was dragging their feet on this one and I had a 50-50 chance of getting the auction delayed.  Since the numbers on this tend to be attractive, I have wired the amount and we should be closing on Wednesday.  

Once we close, I plan to get the property into good order and do a cash out refinance. I can cash out the value of the amount paid or the appraised value of the property after repairs.

Originally posted by @Maura Paler:

.....growing restrictions for VR in NYC and FL have been an issue. Other than that, has been very profitable and fun. 

 Hi Maura,

When you say "growing restrictions", what do you mean by that?

I also see that you say it is profitable.  I am in Orlando, FL and there seems like a lot of competition here due to Disney acting as an anchor (this is only my opinion from what i have seen on the surface and so could be wrong).  With the winter months being slow, along with the competition, how profitable is it? If you have numbers to put down, that would be very helpful.

I, on the other hand, am also looking into providing for the "winter birds".  It is a growing market and will be so for the next 12-20 years here in FL (unless something drastic happens).  It is a very unique niche, which I am researching.  Some don't survive it, but those that do, seem to fare very well.

Ty.

@Dion DePaoli I am sure that it took you a few good minutes to put up this post.  In knowing that I can't reciprocate for now, I appreciate the time and the knowledge you have spilt out here.  I thank you for that.

From your post, I got into a little reading and research in figuring out the final judgement. Along with that, I  got exposed to how short sale works, the do's and don'ts, how an auction sale works and the games played on the court steps etc  It's been a very informative 2-3 days which all stated from the little rope you threw out.

Now to the property.  I got to speak to the attorney that is dealing with this and got some information from there. I also got to talk to the settlement dept. of the institution that is holding the loan.  Long story short, if the borrower (or whoever as a matter of fact) can get the amount fully paid off, than the property is all clear.  In your words, it will cost just about $100k to redeem the property.

I have an attorney working on this and we are sitting to write out the contracts this afternoon or tomorrow in the latest.  Along with this, I am getting a pre-approval letter sent to them.  The mortgage I am applying for is via HomeStyle, which will also forward all the money for the work required to bring the property back to good condition.

I am feeling a little more hopeful that this will work out.  However, if it does not, than it has been a good experience and I will go out in search for another one.  I will keep you posted as to how this works out.

@Dion DePaoli thanks again for you time!

@Samuel Muniz glad you're taking the plunge.  We feed in the same market and just like you, I have entered in not too long ago.

Being proactive is good. However, I found this from my experience.  In asking for help, you will get a little of it here and there.  The person that is the helper/adviser also has a living to make and has a life after RE.  He will give you what he can and that may be limited.

In asking for help, what I found was that really good help and support comes via 2 paths. The first is when you get a deal.  Have faith and confidence in yourself  in knowing that you have done enough research and reading to where you have some knowledge.  You will fare well.  At some point, you will hit a barrier/s and when you reach out at that point, the responses will be more elaborated and the response count will also be higher.  

I am assuming that people feel obliged and responsible when the situation at hand is "real". Hence, they make a real effort to see you getting back on path.  Their investment in you coming out good, has a feel-good factor as their reward.  To some (esp. seasoned investors) this is something they perceive as rewarding, as most deals that they come across, they can do with their eyes closed. We all need some sort of reward to feel valued.

The second thing you can do is have something on offer.  Now that something can be anything, but the help you get will be proportional to the value you are offering.  Easch person puts a different value on different offers.

You, my friend, have something very unique to offer.  In saying you are a pro at photography (videography makes you even more marketable), you have to put that out in an optimal manner.  Photography/videography are expensive enough for most to not use, as it bites into profits.  However, it really does go a long way into marketing a property. 

That offer that you have tabled, should be very much at the top of your post.  You should also elaborate as to what work is involved and the hours it takes to put good work out. Also with a little research, you can get RE marketing stats based on the use of pictures/videos.  Put it all out the and show the real value that you can bring.  Sometimes, your lack of value in your product, will allow the counter party to offer you way less, only because that they can take advantage of the situation.

I wish you the very best and am in admiration of the dedication you have for this.  Being on the same working field, I can see our paths crossing sooner or later.  Till than, take care.

Sam

Originally posted by @J Scott:

Originally posted by @Aaron Mazzrillo:

FYI - 65% of statistics are made up.

 It's actually closer to 82%, according to my data.

 Since both the above are statistics of statistics.  Should we consider that made up? :-p

Joshua Dorkin and Brandon Turner now we're talking. This is the type of quality I've come to expect of your products and am happy that this release has come out so well.............and yet more to come. Congrats on a job well done. Bravo!

If all the numbers work out for the deal and I decide to go ahead, how is it best to write out the contract without jeopardizing my side?  

If I make the payment to clear the debt and obtain the property, is there a double contract on the table?  

This is the only route I can think of.  Would this be the way to go or is there a more efficient and cost effective route?