All Forum Posts by: Andrew Schmidt

Seems high. I got a unsecured line from WF @ 8% for my last property.

Remodeling took for ever and went 10 over budget. There was a lot of interest in the house and it's now rented out. The mortgage broker I've worked with before is ghosting me or out of business. This portion should be interesting as credit seems to be tightening.

40k purchase

80k all in

100k estimated value

Renting for 950$/month, which may be too low.

14% return on cash without financing.

@Gerardo Escutia

It was on Wells Fargo REO and also listed on MLS. I don't have any active lead generation going, so I have mostly bought off of the MLS. I do have one rental property that I came about through family and am actively working on a lead a friend brought me.

How are you aquiring leads?

I would tell them they failed the inspection and ask for a reduction in price 15k per room that was not available for inspection or reinspection on their dollar.

Agents have always been worthless on the negotiating part of the process for me. They have been useful to run around and project manage to make sure it closes towards the end. They make money on the close so that makes sense.

My last purchase I just used the buyers agent so he would be doubly incentivised to close.

Every property on the MLS is a good deal at some lower bid price. You figure out what that is and make your own deal.

If they can make more selling to someone else, good for them.

There's usually stale leads that the person is tired of waiting for money and doesn't want to spend holding costs any more.

Follow the lease everyone agreed to and signed.

If the first R goes well I'll share the contractor. He mostly works out of Glenville.

I have cash to cover my budget. I have a personal line from WF if needed or just wait until more cash comes in from my job.

I was not planning on financing until a tenant is placed and cash is flowing in.

I recently closed on a small 3/2 REO in Hinesville GA.

Asking was 59900. I offered 40k. Got them down to 45k, pending inspections. After inspections I asked for a reduction in price because banks don't like to do any work themselves. Reducing the price further to 40k.

Now I'm talking to a contractor about plaster paint, flooring, new kitchen, siding, new deck. Budgeted 27k for the remodels.

area rents are 850-1100

Comps are 85-125

So far the likelihood of successfully getting the property rented and take out the capital are positive.

Hey, it's free real estate.

When I start looking at a deal I want to see the price 21% lower than the ARV 15% for me and 6 % for the agent if you have to sell minus repair and closing costs.

79% of 155k is 122.45k.

minus 20 for repair and closing.

I'd offer 102k.