All Forum Posts by: Joey Smajd

Looking for cash buyers interested in investing in the Columbus Valley Area.

Please contact us at https://columbusvalleyinvestors.com/index.html

I attended a "House Jerk" promotional seminar yesterday in my home town of Columbus, GA. I was invited at the last minute by a former neighbor. "Don Jacobs" referred to above in this thread, was the presenter. Honestly I attended thinking I'd at least get a free meal and possibly network with some other investors in my area! Instead I had to pay for my own meal and pretty much everyone there had never done a single RE deal. Also I learned very little about this organization as it seemed to he mostly hype and little substance.

What I learned was that it supposedly is a network of investors that help one another find, finance, and close RE deals. Sound familiar?  They also use a network of in house vendors from landscaping, to painters, to insurance agents and lawyers. Well the cost isn't all that bad I think $300-$400 one time fee and then $24/mo reoccurring. Also you do get $100 referral fee per person you get to join so that's the MLM part everyone keeps referring to. Honestly I don't know anything else about it, but it sounds like everything they were pitching is available for free or for at least a lower cost here on BP!

Gary you want to passively invest in re, correct?

Have you considered note investing? I believe this could be a viable option for you, the initial challenge is finding a reputable experienced note professional you can trust to service/broker your deals. It will eat into your overall profits but is well worth the education and mitigated risk you get in return.You can earn somewhere between an 8-12% return and with less effort compared with wholesaling, flipping, or being a landlord. Just an idea worth considering before committing yourself to a niche.

Best of luck in your re investing endeavors!

Welcome to BP Adam!

I too have been soaking up as much info from BP as I could over the past 6 months and finally putting some of that knowledge to good use. (Got one rental & one potential flip under reno both via estate sales). There is no better place online to learn about REI, and its mostly free!

I could use some advice from an expert marketer such as yourself. Good luck in your wholesaling endeavors, definitely could use some good wholesalers in our area!

I recently spoke with my local HUD broker about a home that I would like to purchase as an O/O. It is currently listed below 50% ARV in a great neighborhood and I happen to have enough money to pay cash.

The HUD broker told me that if my offer was in cash I would be at a disadvantage because a buyer making an identical offer to mine would via an FHA loan be more attractive to HUD because of all of the added interest they would collect.

I really would like to get the property so I guess my best option is to purchase with an FHA loan and then just pay it off a month later? Anyone else had experience dealing with purchaaing HUD homes? Advice/opinions please...

Thank you to all for the expedient imparting of wisdom on this newbie!

Update: someone else offered 112k today
walking away with my head held high!

Why would a seller care about the amount offered on a property if the property has to go to short sale anyways?

Example:
Listing price $120
Buyer's initial Offer: $95
Seller's counter: $115 (short sale)
Buyer's counter: $105

But why does the seller care whether the buyer's offer is 90K or 115K if the property has to go to short sale at anything under 120K?

@Phil Z. "Your saying the numbers don't work today, but the numbers might work 10 years from now? Then the numbers don't work and I would not buy it."

Your smart @$$ comment is not appreciated!

1.) I said nothing about 10 years I assume you're referencing my wanting to live in it for 1 year and are mocking me for this!?

2.) The numbers work: Potentially up to $40k profit but I am cautious about the area not having a high sales volume over the past 3-6 months.

3.) The house is in a Great location in town, on a cul de sac and most of the houses that have had trouble selling in this area also are the same ones completely outdated.

4.) My reasons for living in it for a year (possibly longer) are based not on market conditions, but rather personal reasons.

A.) I will be able to get the property with much less cash than the average investor financing 96.5% of sales price ties up less cash

B.) I am renting out a free & clear property that will negate my holding cost living in this one, and it just so happens I plan on living in the area another 1 - 1&1/2 years.

C.) Property taxes at my rental are much lower than at the rehab property so I will save $$$ on taxes getting a homestead exemption and living in it.

D.) My family has gotten bigger and worse case scenario we're upgrading into a much bigger house for next to nothing, and learning ALOT about flipping a house in the process.

E.)Here's the new Ultra conservative numbers for the deal using a J Scott Formula:
Sale Price - Purchase Price - Fixed Cost - Rehab Cost = $20k minimum profit
$220k. $104k. $26k $70k

These numbers for the exception of purchase price and sales price are all intentionally estimated on the high side. The avg sales price for houses in this area are between $70-$75 per square foot. Because my house will be on the larger end I've conservatively estimated it to only sell for $65 per square foot, not even accounting for the fact it will be one of the most updated homes in the neighborhood so getting essentially 10-15% below what others are getting for less shouldn't be a problem!

5.) Contingency plan: If all else fails and we can't sell for a minimum of $20k profit, I am positive we can generate a strong cash on cash return as a rental especially considering we have a large population of military tenants who have a guaranteed BAH. For Example a Captain with dependents have $1683 BAH so we could easily rent a house of this size for $1500-$1600/mo

So I got the property under contract at 104k!

Pending everything checks out after the inspection I have until COB Wednesday to back out.

I'm excited, and nervous all at the same time! I plan on using the time I have the next five days to finalize my comps, rehab/fixed costs and determine if I will be moving forward on our first Flip project!

Anything I should know/do before this contract is final please feel free to share. Thank you in advance!

So I just got a response from the bank requesting highest or best offer:

Option A:
Considering sticking w/ my initial offer of 100k asking 3k toward closing & 5k EM.

(asking price 110k) potential to sell 190k low end & 220k high end)

Option B:
Or going up up to 104k & asking $0 towards closing & 5k EM.

Both options should net me a profit however option B I will make 10k less but option A I might lose the bid.

What would you do in this situation?