All Forum Posts by: Andrew Bondarchuk

@Jovon Itwaru

Will do! Guess I'll go back to the drawing board though. Update: on my lunch break I drove by the property, it's pretty close to where I work. While the property is priced low, I think I overestimated it's potential ARV. The neighborhood is absolute garbage and every house needs serious work. I couldn't drive out of there fast enough. I would be in so over my head and at the end of it, I doubt it would draw any quality tenants, if any. I'm thankful to be part of a community so knowledgeable and willing to give support and give advice to people trying to start out. I asked the agent to get me on the mailing list and he knows now what I'm looking for. For my next adventure, I'll be looking for a crap house but in a decent neighborhood. I learned a good lesson in all of this, so thank you to all!

@Steven Ko

Oh also, I would more than welcome a mentor. I would be happy to give up weekends and work for $0 for someone with experience that can show me how to do this the right way. I consider it a free education, worth millions! :)

@Steven Ko

Hey Steven, thanks for the advice. I am eager to get going but agree that a bad deal isn’t worth it. This one looks very attractive considering the area. There are development projects happening all around this property and values are going up every day. Even if I do nothing to the property, I believe I would have instant equity in it. My wife is almost a year in to a sales position where she can potentially double her salary within the next few months so we’re hoping that helps us get out of debt and also give us more financial flexibility to save and also invest. In talking to the listing agent he was drawing up a contract but still there is no ink to paper so I don believe I’m on the hook for anything. When I check out the property today I’ll feel more empowered to make a good decision on whether putting in an offer makes sense. If the pictures match the current state of the property, then I think I should do it.

@Dennis M.

Hey Dennis! Unfortunately, no. I had a walkthrough scheduled yesterday but when it came time to leave there was a very bad storm so I cancelled. I work right down the street from the property so I plan to swing by this morning and check it out!

@Sam Shueh

Thanks Sam! Only issue- I don’t have the funds. Showing them my bank account would inspire either laughter or pity, or both. I would need to figure out some creative financing to close this. Nevertheless, I am certain this is a great deal.

@Jovon Itwaru

You know what, I’m open to it. Listening to the podcasts, I know that 50% of a deal is better than 100% of no deal. Plus I could learn a lot from someone who has a few deals under their belt. I see you are in Orlando, is this something that you might be interested in? I’m sure you are aware of the incredible transformation that is happening in Ybor/Channelside area and development is still underway.

@Tim Herman

Man, none of those are options for me. I don’t have 20% of $51k, I won’t be living there, and my wife changed jobs (for a significant pay cut) while giving birth to our second kid so some bills have been going unpaid and our credit is shot. I still intend to see the property and make an offer, and from there see what happens. After talking to the guy, he knows the value and is confident that it will go for well above asking price, but I have to at least make an attempt. I have an appointment in a couple of hours, so we’ll see how this goes!!

@Tim Herman

So I just talked to the listing agent. Apparently there is no way this is passing inspection. So I guess that means bank financing is out? If that’s the case, a hard money loan seems like the only option. Are there other ways to secure financing without a bank loan?

@Tim Herman

Yes, $25k is a complete guess and I don't know if I can even view the property because it is a foreclosure. Isn't it normally "sight unseen" for bidding on these types of homes? I mean there are pictures of the property but who knows how old those are. On financing, I wasn't intending to deal with a bank initially but would it make sense to deal with a HML, and when the place is rented, refinance and pay off the HML at 10% interest after one year? Not sure if that is the standard or how that works even.

@Greg Scott

Also I definitely would need help from a HML and I don't have a relationship with any yet. Hopefully if my offer is accepted I can make it work and secure funding - but I agree I would probably need to hustle. If it all falls through, I guess I'm only put the deposit, right?