All Forum Posts by: Angel Perez

It's my understanding you can not double close a probate sale. The courts are involved in the process and want to know that you are qualified to buy the property.

I don't think it's even possible to wholesale a probate.

Analysis paralysis. You are overanalizing the process so much that you are holding back. Do your research, come up with a logical plan and dive in. Don't over think it.

It's great to study and research to learn as much as possible but until you jump in you aren't going to really learn the business.

I would take a look at the neighborhood and try not to over plan for a house that's in an area that doesn't demand it. Why spend money like you're in Beverly Hills when you're closer to Compton?

Make sure the neighborhood warrants the expense.

I've been told the same thing that J Scott stated. I have also been told you can get them to accept about 10% less than whatever the BPO comes in at.

Champak Shah thank you. I worked the numbers earlier today and came to a similar conclusion.

Don Konipol Ok I thought he was replying to my initial post in which I stated that I would buy this property cash but maybe I misread the post.

The reason for this question is because I would like to better understand what would make a commercial investment worthwhile so I know what I need to offer and determine if this is a property I should invest in or pass up.

I didn't want to give the figures but in the interest of painting a full picture here they are:

Seller is asking $200k from me but I think I could easily bring him down to $175 or less. I have room to offer it for less than the $300k I stated above. The reason I asked about that $300k figure is because I found a similar property that sold in Oct for $300k, that said, I have no idea what that property's revenue/expenses were. And, I know that commercial property is not valued the same way as residential which is why we're here.

I'm trying to determine what price point would make this property appealing to a commercial investor. That's all. If that figure is $250k or $200k is fine with me, I just need to know so I can proceed accordingly.

I will take the formula provided by John Mireles to make that determination and decide whether its worth pursuing or not. Thanks.

John Mireles That's the info I was looking for. I do care about what's important to the end buyer because I want to create an appealing investment for them. I wasn't counting on raising rents just throwing it out there since this is what I was told. I never rely on this kind of info, however, if it does become a reality its an added bomus. Thanks for your input.

Joel Owens I'm not wouldn't buy it for $300k I would resell it for $300k. However, I might adjust that figure given the information that John provided. I have some cash but not quite $300k. Thanks.

figured it was a tight deal but wanted to throw it out there. I have been told that rent could be increased to $2,500/mo and since the current rental agreements are month-to-month the owner isn't tied by a lease. I don't know how realistic this is.

At what price point does this become a worthwhile investment to buy and hold?

Hey Ben Bakhshi. Arthur Garcia pretty much covered everything.

I just wanted to add that probably the easiest way to approach this is to have your partner secure the finance but instruct escrow that title will be taken under the LLC. That way there is no added expense or headaches and it is taken care of on your purchase and not as a secondary recording.

I flip single family homes so commercial is not an area I deal with too often. I have an opportunity to make a cash purchase but wanted to know how appealing the numbers might be to someone who would be the end buyer and hold the property.

I considered holding it myself but it's just not my thing. I would prefer to buy it and resell right away.

That said here are the numbers:

Purchase price: $300k
Current rental income: $1,900/mo

Zoned R3
Currently there are 3 units on the property. One is being used as a church and the other two is essentially a duplex.

If more info is needed just ask and I'll provide what I can.