All Forum Posts by: Ari Yenjai

My agent doesn't know the ARV for this property as he said it is such a special home so it might be hard to sale. He said that it really depends on what degree I am going to bring the property. However, I found out that from the listing agent that it went under a contract this afternoon.

Thank you so much guys for the advice @Mark Ferguson @Rachel H. @J Scott @Brandon Turner

Hi there BP members,

I'm currently working on a deal analysis on my first fix and flip property. it's an REO with 3bd 1 bth 2,392 sq ft with a finished basement which was built to be a tornado shelter. (A Realtor said that the basement is not included into the 2392 sq ft) . It was built in 1947 and has a lot of 0.82 acres. it's located in a small town in Oklahoma. On this lot also also has a house that to me they might have used it as an office back then and a barn. My contract and I went to see the properties and he gave me a rough repair estimate of making this properties in a great shape again around 30K and the listing price is 49K (Last sold in 2002 was 80K). My concern is I really don't know how much this house will worth after it fixed up as it's actually not located in the neighborhood (it's right off the highway, and across and on the back of this house are commercial buildings.) Next door house was just recently sold for 138K but it's a little bit newer and has ~2100 sq ft 4bd 3bth and has been updated. Other houses in this town are vary in the range of $35-45/ sq ft.

What do you guys recommend on finding comps in this situation?

Another questions is about the condition of this house.

This house will be sold as as-is and the bank won't turn on an electric, water or gas for an inspection. It was vacant for 8 months since the previous owner got foreclosed on. However, my contractor said that the foundation and structure of this house is still solid. it's looks like that the electrical boxes got replaced. The roof might have to be replaced but we're not sure as my contractor doesn't have expertise in the roofing and he said that they were made of composite material that he never seen in residential houses.. usually seen in commercial building. we actually went to see this house on the rainy day and looks like there no water leaks into the house. The basement is actually goes around the whole house and has 3 small rooms with 1 bath. We see some small moles issue and water damage on walls and windows.

Do you think a basement is a positive thing to have? or will it take a lot to fix and clean up?

How much should I offer the bank in this situation?

Please jump in and share any thoughts, concerns, comments how do you want to approach this deal?

Thank you so much!

Ari

Thank you @Account Closed I'm a reader too so yeah...I will definitely get the one you recommended.

Thank you for your advice!!! @Jon Holdman @Account Closed

I think I'll get with a lawyer in TX first and start a new LLC.

Do you guys happen to know any lawyers here in Dallas that you want to refer me to?

Hello BP!

I have my LLC registered in Oklahoma as this was the first plan I was going to do fix and flip there. However, I moved to Dallas and was wondering if I need to set up a new LLC to be registered in TX to do fix and flip here in Dallas? Or Can I use my OK LLC to do business in Dallas?

For the tax purpose, what do you LLC experts recommend?

Thank you

@Manny Cirino Could you please go in detail on how you determine how much equity he has in his house again? Also I was lost there when you said "a rehab might be to your convenience at a 70% LTV minus and principle prepares he would walk away with about $76,540 thats not to bad but he might take it as a lost since he paid $122,440 over the years thats a $45,900 loss in equity." Could you please explain that more?

Thank you

Ari

Thank you @Tim Hall @John M. I really appreciate all the advice you guys gave me!!

Thank you so much for a warm welcome @Darren Sager and @Antonio Chasten !

I'm so thrilled of how responsive in the forum. I look forward to learn and network with other investors. Thanks again and see you guys around on the forums :)

-Ari-

Hi John, thank you so much for your time to answer my questions. I actually wanted to help my friend out that why I try to make this deal work. However, from my quick estimated repair cost and comps I felt the same that it's a poor deal for a fix and flip.

Have you done any subject-to deals before? Could you please share your experiences if you have? what are the steps if I were to go that route?

Thank you

-Ari-

Hi there,

I want to get start on my fist deal and I just got this lead from my friend. He is moving to oversea and want to sell his house fast. This house hasn't been on the market yet. He has just told me yesterday. I want to buy to fix and flip his house but I'm not sure know how to structure this deal to make it profitable flip. Here is the detail. My friend said he want to sell his house for $140,000 after he fix it up (He said he got this asking price from a Realtor friend.) It needs some works and he said that it probably cost around $6,000 (from what he knows). This house was built in 1981. It's a 4bd 2 bth with 1,969 sq ft. He bought this house in 2006 for $130,000 with a 6.755% 30 years-fixed rate loan from the bank with 10% down and has PITI of $1,140 monthly. He has been paying that for 8 years.

He said if he don't have to fix anything he'll be willing to negotiate but I'm not sure if he will want to sell his house for 70% ARV - rehab cost. Any advice on negotiating?

I also think about doing the subject-to his existing mortgage if he still firm on his asking price and I can't make it a good flip deal. My exit strategy would be a lease option. However, I have no experience in either subject-to and lease option so I need someone to help and walk me through these strategies step by step please if that possible?

Thank you in advance

-Ari-