All Forum Posts by: Andres Blandon

Hi Wayne,

I would appreciate if you could explain further. I was under the impression that when a person sold their property they would deduct the mortgage and all other closing costs from the sale price. Then remaining funds would be considered income? I may be wrong.

what would happen if the mortgage and closing cost equal to the sale price and there is no income from the sale? But the seller had previously cashed out through refinance.

This is one of the reasons I decided to hold on to my property.

Hello Everyone,

I know it has been a year since this post was update and I wanted to point out few things that have happened since. The contract fell through for the Pensacola property and another investor took the property. The same property that I had under contract exactly 1 year ago for 148k was remodeled and back on the market for 274k. While I was out of my deposit funds and inspection fees roughly $1,500, it did give me a good perspective and lessons learned from this experience.

The other investor really went over the top with renovation and the property has dropped in price twice since August without any buyers...

http://www.realtor.com/realestateandhomes-detail/2...

On the other hand, I was able to focus on overcoming the credit issues that were holding me back. I made sure to have secure financing before pursuing my next property and few months later secured a great SFH, 1 mile from the beach in Palm Beach county. I had the seller pay all the closing cost and still came in $50k equity/under appraised value. Its currently rented and cash flowing $400 a month.

Lessons Learned:

1. Have funding (or an exit strategy before pulling the trigger on the property).

2. Know your area... if you do due diligence ahead of time, then you will know when a property is a deal or not as soon as you see it.

3. Always Negotiate: Money is made when you buy! Know your After Repair Value, possible rental comps in the area (for buy and hold or BRRR). Also, If seller is not willing to come down any more on the price, ask for seller to pay full closing cost.

4. Take action! Luck is when preparation meets opportunity. By being prepared I mean saving up some money for possible rehab cost, down payment, working out kinks in credit, hustling to find the right leads and networking with other real estate professionals.

Thanks a lot to BP for helping me keep the motivation to succeed after having some set backs earlier in 2016!

Hey @Eric DeVito I'm on the same situation and this is a topic that I have thought about recently. I own my primary home through a VA home loan and have approximately 50k in equity but don't meet the 24 month tax exemption.

My thoughts were to do a VA Cash out refinance loan. Since VA allows upto 100% of appraised value, you can get the cash out now. Then put the house on the market and sell at full price to cover your loan and technically you won't make money on the sale.

***This was a recent thought and I have yet to read anything against this. The only issue might be the lender having a prepayment penalty, which most of the time is not the case. You might even ask this question up front before the cash out refi.

Good luck and hope to hear more on this topic and how it all works out.

Hey guys,

I would like some advice/ideas on how to turn around a property I acquired online or how to get rid of it (if it's not worth the trouble).

Being prior military I was familiar with Fort gordon, GA (city of Augusta) and received a notice that the VA was getting rid of several properties that it had foreclosed on. I live in South florida though and don't have many contacts since I left there.

The property is a 2/1 single family home near downtown and about 20 minutes from the base. This would make a decent rental property. Average of about $600 rent per month.

I sent a low ball offer not really sure if it would be accepted, but to my surprise it was. 

Altogether I came out of pocket about $5,200 in aquisition.

At the time I couldn't go see the property in person but took a chance knowing the lot alone was worth over $9,000.

Once i finally went to see the property it had been vacant for about 2 years. Since then the back side of the roof had collapsed into the property. During that incident it appears as though the roof pushed through the flooring and broke the joists/base holding up the floor (wooden frame house).

This damage which is structural requires for the entire frame to be rebuilt.

I have contacted a few contractors and the estimated cost is between $75k to $85k to rebuild the home to code.

The downside is that this being a smaller city and rent being low, the properties in the area are selling for about $50k.

I'm not sure if I could get a loan to rebuild and hold the property long term?... Or if I should sell the property for the land value that it has?... There is not much demand in this part of the state (plenty of land available).

Just wondering what some of you would do with this property? Some ideas on how I can move forward with it would be greatly appreciated!

Hi doug,

I just wanted to put my 2 cents in. There are and have been many developing areas in Florida through the selling of land. I have in the past taken acreage raw land near Orlando and subdividing into lots for sale. This makes it easier to sell because it's often cheaper for buyers and more profitable than selling one large piece of land.

Also if you partner with a builder or developer, you can offer to sell the land and the house (not yet built) before the construction begins.

Best of luck!

I had a very similar scenario from a "Private Lender" called Frank Howard on here. As soon as he said Western Union I ran. I would just warn every one on here to watch out for this guy:

https://www.biggerpockets.com/users/FrankH16

Either way, @Bill Casimir you can try:

http://www.ic3.gov/default.aspx To file your report and if they catch the guy, some of your funds might be recovered. 

Hope this helps!

I am a real estate investor and military veteran that is looking to network and make deals happen in the state of Florida. I have experience acquiring HUD owned homes and am looking for financial partners that would like to close on these deals and flip for a profit.

Please feel free to contact me or send me a message with any questions of comments that will be helpful in establishing prosperous business relationships.

Yes, Private lenders and hard money lenders have different guidelines. 

The lender would do 100% purchase and I would do 100% rehab.

I have an estimated 10k to put into updating and cosmetic rehab to sell the property quickly.

The initially estimate at 230k ARV x 65% (lenders criteria) = 149k (which is our purchase price.).

Since the current Appraisal came in at 194 x 65% = 126k (below our purchase and not including rehab).

Thanks to everyone who has provided some feedback and I will post updates as we move along.

@WilliamAlan I have sent you a message. I am open to all suggestions and I'm glad that you are a service member and familiar with this area. 

-Thanks!

Thanks for the input! I will respond to the lender with my request for an appeal. Is there anything in particular that I should point out when making the appeal? besides the difference in rooms and square footage?