All Forum Posts by: Almateen Yazid

“clear chain of title” is the key! The EXIT is the other!

I'v done 3 sub2's before. Pretty straight forward.

The cleaner and less convoluted the deal...the better! Figures look good though. Make sure you can reposition the asset.

Almateen

Keep the channels clear.  I would hire or find a broker or seasoned professional that can satisfy that aspect.  Maybe better to compartmentalize keep separate and...  let the mgnt company do what they do best... manage. But, you are on point!  One hand can't clap!  Off load management to another entity and focus on grooming, growing and ...ch$h flowing!.

Have a question concerning a deal structure and vale of a fourplex I am looking at. I have done 3 sub2's in the past but I not to sure how to structure this one in terms of asking price. Again, it's a 4Plex and the city assessment is $203,000. Think it is useless for this deal. Cost approach is a different subject matter and...I think the owners are factoring rehab into their asking price? You tell me?

I ran across a 4plex deal. It needs a TON OF WORK! Years of neglect. Slumlords!! Lots of deferred maintenance. The previous owners sucked to life force out of it and didn't reinvest anything back into the property but... It has potential in a transformed location. They have tried to sell it multiple times to no avail. Here is the rundown:

4 unit Multifamily that sits on a huge lot. Can possible sub divide lot.

over 5,000 sqft all brick

rehab estimate- exterior 40,000... interior 20,000 per unit x 4= 80,000Total Rehab $120,000

Seller Asking PRICE $175,000

Present mortgage $125,000 @ 7.2% 30 year term (was originally $152,000 in 2004)

No second liens

2 units are occupied (don't see how with all the deferred maintenance) and supposedly collecting rents $600 each

They originally offered a "land contract" at $175,000

City assessment- based on land and structure $203,000

All units are metered separately- electricity, gas, water, trash etc...

The good news....

pro forma base upon what I know about that area. These are the going rents:

4bedroom- $1,100

4bedroom $1,100

3bedroom $900

2bedroom$800

Projected Total gross rents $3,900 x 12= $46,800

MY PROPOSED DEAL STRUCTURE...

I need to deed! On thing I can depend upon is me to take care of business and secure my investment. I Don't trust and believe they would handle business properly from what I see. Again, I have done 3 of these deals before and repositioned successfully!

SUBJECT TO existing mortgage of $125,000

CASH TO SELLER $10,000

WILL REFI BEFORE TWO YEARS ONCE PROPERTY IS STABILIZED (I deal with local community banks and will do a commercial in my LLC to cash out at 70% LTV to recoup back some of my initial investment?)

What would you say about this deal. How would you structure, and what should be my offer price?

Thanks!

Have a question concerning a deal structure and vale of a fourplex I am looking at.  I have done 3 sub2's in the past but I not to sure how to structure this one in terms of asking price.  Again, it's a 4Plex and the city assessment is $203,000.  Think it is useless for this deal.  Cost approach is a different subject matter and...I think the owners are factoring rehab into their asking price?  You tell me?

I ran across a 4plex deal.  It needs a TON OF WORK!  Years of neglect.  Slumlords!! Lots of deferred maintenance.  The previous owners sucked to life force out of it and didn't reinvest anything back into the property but... It has potential in a transformed location.  They have tried to sell it multiple times to no avail. Here is the rundown:

4 unit Multifamily  that sits on a huge lot. Can possible sub divide lot.

over 5,000 sqft all brick

rehab estimate- exterior 40,000... interior 20,000 per unit x 4= 80,000Total Rehab $120,000

Seller Asking PRICE $175,000

Present mortgage $125,000 @ 7.2% 30 year term (was originally $152,000 in 2004)

No second liens

2 units are occupied (don't see how with all the deferred maintenance) and supposedly collecting rents $600 each

They originally offered a "land contract" at $175,000

City assessment- based on land and structure $203,000

All units are metered separately- electricity, gas, water, trash etc...

The good news....

pro forma base upon what I know about that area. These are the going rents:

4bedroom- $1,100

4bedroom $1,100

3bedroom $900

2bedroom$800

Projected Total gross rents $3,900 x 12= $46,800

MY PROPOSED DEAL STRUCTURE...

I need to deed!  On thing I can depend upon is me to take care of business and secure my investment.  I Don't trust and believe they would handle business properly from what I see. Again, I have done 3 of these deals before and repositioned successfully!

SUBJECT TO existing mortgage of $125,000

CASH TO SELLER $10,000

WILL REFI BEFORE TWO YEARS ONCE PROPERTY IS STABILIZED (I deal with local community banks and will do a commercial in my LLC to cash out at 70% LTV to recoup back some of my initial investment?)

What would you say about this deal.  How would you structure, and what should be my offer price?

Thanks!

Portsmouth, because of their greed and appetite, is penalizing the very people that can bail them out of the Muck & Maya.... INVESTORS!  We are the ones who move the economy! Dealing with the city is unreal for property owners! I have seen a lot of changes in the city's housing policies and regulations as well. Unless it is a great deal, I'm not buying in Pocket Town anymore!

ATTENTION...

Those on the sidelines and not in the game.... sometimes NOT taking a RISK is MORE riskier than doing NOTHING at all! It is your responsibility to morph your life and manifest! In these turbulent and uncertain economic times... Don't be a "sitting duck!" One thing YOU can DEPEND upon.... is YOU! Not Wall/Fall Street, your employer, your Broker- at the end of the day someone will be broke and... I can guarantee you it wont be him! You get the message. The last decade in the stock market has be a decade of nothingness for the typical junk they peddle on Wall street for the average die-vestor. Be the IN-dual-vidual creation intended you to be! The creation process is duality. Input/Receiving and... OUTPUT- ACTION! IN-Formation in itself, should lead to the FORMATION of things and the experience thereof. Put yourself into ACTION and "MIND YOUR BUSINESS!" It's no accident it's called "REAL"-Estate! It's tangible and ... REAL!

MOVEMENTS!

If you're going to rent it out... Lease with an option to buy. 3-5 year draw.  If you don't need the equity now, be the bank and wait for the market to turn around.  Although it may be an over improvement for rental property, at least with a lease option, seller financing., etc., you can reduce your turnovers as well (trust me... wear-n-tear!)  until your ready to re-position of the market can yield what you want.

Always think with the end in mind first.

In hindsight, you could have done an "Investors Flip" and got it up to the point for an investor to take over.  In your scenario,  less time... more dollars... quick exit!

Paid too much for renovations but you'll do better next round!

Movements! Nice.

ATTENTION...

Those on the sidelines and not in the game.... sometimes NOT taking a RISK is MORE riskier than doing NOTHING at all! It is your responsibility to morph your life and manifest! In these turbulent and uncertain economic times... Don't be a "sitting duck!" One thing YOU can DEPEND upon.... is YOU!  Not Wall/Fall Street, your employer, your Broker- at the end of the day someone will be broke and... I can guarantee you it wont be him!  You get the message.  The last decade in the stock market has be a decade of nothingness for the typical junk they peddle on Wall street for the average die-vestor. Be the IN-dual-vi-dual creation intended you to be! The creation process is duality.  Input/Receiving and... OUTPUT- ACTION! IN-Formation in itself, should lead to the FORMATION of things and the experience thereof. Put yourself into ACTION and "MIND YOUR BUSINESS!" It's no accident it's called "REAL"-Estate! It's tangible and ... REAL! 

MOVEMENTS!

NO. None in NPN. Other areas of tidewater I do. Just have to really know the areas to Maximize your return (ROI). There are certain areas, as an investor, even in VABeach I would stay away from!

All areas have there sections.

Depends upon the bank's requirements and how it was purchased. (financed vs. free and clear)

Big issues are...

Seasoning

LTV

Be sure to buy it right!