All Forum Posts by: Anthony Silver

Hey Jorge...In a perfect world, you don't sell...But the guys said that they haven't syndicated any deals...They use all there own money and they've taken equity out to fund the next deal...So that means that 2 million dollar note on that 36 unit complex becomes a problem if the entire balance is due...yes it cash flows nicely, but that's based on paying down a mortgage...Those horrible terms can come back to bite you in the ***...One of the guys said we accepted those bad terms because they KNEW they could refinance in 12 months...Ask anybody that was investing in 2008 if they felt the same way...

Very entertaining....But I must be the only investor that cringed at some of the things being said...The idea of justifying bad loan terms because they can refinance 12 months from now sounds dangerously like 2008...What happens if there is a downward turn in the market and the equity dries up?   What if you can't sell because the buyers pool shrinks because lending practices change? What happens when that balloon payment becomes due and you have to exhaust all of your financial reserves?  That puts you in a very dangerous place...I guess these guys don't realize the risk because they've only been in the game for 5 years...I love the guys and their personality...900 hundred units is freaking phenomenal...I have seven...so I'm a minnow in a ocean full sharks...But with the loom of a market correction, I want 50 percent of my units free and clear, so when all he'll breaks loose, I can thrive and not hope to survive...

 Thanks Jim...Reno cost are low because I do a lot myself...

thanks @Charles Parrish...very insightful...exactly the type of advice I was looking for

 You are exactly right Jeff...This will tie up a lot of money, and more importantly, a lot of time...The only reason I didn't pass immediately was because of my close friend...The seller is the executor and has all the burdens of dealing with the city, absent heirs, and disgruntled family.  She is tired and told her that I would help if I could...I believe the deal can be lucrative, but it will require a lot of management because it has so many moving parts..thanks again Jeff

Thanks for all the responses...@Anthony Yannucci, All units I am told are free and clear, but I won't know for sure until I do the title search...The mom wasn't too open with the kids before she past...No one had a clue about the Contract for Deed...So according to her the Tax liens and fines are the only things owed on the properties. The properties are in a fringe area...Two blocks over, 1000 sq/ft turnkey houses are going for 125k and two blocks in the other direction the same houses are going for less than 40k...I didn't mention it before, but the three SFR's are all on the same street...So I can maximize my appreciation with to good rehabs. The majority of the 65k would be used in tearing down house 1 and rehabbing house 2....House 3 needs less than 10k to clean up and upgrade...The duplex is ready...I do a lot of the rehab myself, that's why I think the duplex is so important. I can collect some rents to offset some of the expenses of the rehab...thanks again

Hello BP,

I am an investor newbie who only has a couple of deals under my belt. I currently have 3 units that cash flow pretty good, but I'm looking to expand my passive income portfolio. A couple of weeks ago I was approached by a friend of a friend with a deal. She and her siblings inherited 4 SFR's with loads of legal issues. They have possession of 3...One needs total rehab, one needs minor rehab, and the other needs to be torn down. They have fines and tax liens in access of 8k. I could get all three for less than 10k.

With the extent of work needed, I was ready to walk away from the deal until I saw the forth house.  It is a fully rented duplex that their mother did a Contract for Deed in 2008.  The buyer was to fulfill the contract in 2012 but never did.  For the last 3 years he's been collecting rents, but not paying taxes or loan payments.  My seller has inherited this problem with no means to retain legal representation to rectify the situation.  There is a tax bill of 22k on the duplex.  So if I buy, I could get possession the forth has relatively easy.

I have nothing signed with the seller, but I made it clear that I would consider a deal without the forth house.  She just wants to be done with the ordeal.  I believe that it will take 65k to tear down and rehab all the units, so that makes 97k for 4 units to which will rent for 800/month. So I'm looking to cash flow about $200 a door after expenses. 

My question is how should I approach the purchase agreement with the seller to protect myself in case I'm not able to get the forth property. Or is this deal even worth the time?

Thanks all...good feedback...Michael Noto...there was an $850 deposit, but I do work orders for all maintenance issues. I keep a total of everything that is beyond normal wear and tear...She had a leaky faucet, that's normal wear and tear...One of her children broke a window, I fixed it, but I deducted $75 dollars from her deposit...She now has $472 remaining and I would be glad to give it to for a timely departure...

Thanks Darrell and Stanley...Great advice

I have a single family home that I purchased with Hard Money at 14%...I then maxed out 2 credit cards to rehab the unit and it quickly rented for $850/month...I currently cashflow $150/month after I pay my lender...I wish to refinance, but my credit took a hit when maxed out the cards...I was listening to Brandon on Biggerpockets and gave me the idea to take on a credit partner...I owe 33k and the house should appraise for 95k...how do I construct a deal to get this done?  Thanks in advance