All Forum Posts by: Ben Raef

Hey Tyler H, I am working off the MLS and with Wholesalers. I have not tried contacting sellers directly. Do you have any suggestions? I hesitate to start a mailing campaign, maybe something as simple as driving for dollars would be more fruitful than what I have been doing.

Are there any Tarrant County investors that are having difficulty finding deals?

For the past 4 months or so I have been looking for SF/MF properties but can't find deals. I view deals from wholesalers and MLS. Any suggestions? Should I reduce my expectations for CoC returns? What are you guys seeing in the market these days for returns?

Thank you @Aaron Howell @Pat McCandless for the clarification.

You are correct that the mortgage would be for 75% of $100k = $75.  The mortgage for a $75k loan is more than $50k loan and therefor the cash flow is about $200/month less.  

When analyzing a long term rental deal how do you determine the appraisal value? In my analysis I am using the ARV as the refi appraisal amount. Trouble is the monthly mortgage increases based on the ARV or appraisal value from the lender. For example: Cash purchase price $50k ARV $100k 75% cash out refi The good part is I can get all my cash back. The down side is the mortgage on $100k does not give me the monthly cash flow I'm looking for. What am I missing? Thanks for your help BP!

Hey Forrest! Welcome. Be patient and wait for a good deal. You make your money when you buy so be patient and keep learning.

Smart idea Ellen!  I would assume that a professional's opinion is not enough to sway the municipality to change their minds on a setback that relates to human safety.  On the other hand the regulating entity may have the power to reduce the encumbrance if you can provide a physical improvement that would mitigate the risk which requires the setback.  Not living in your area I am not familiar with landslides.  for example maybe a wall could be designed and constructed on the edge of your property to contain a potential mudslide.  There is obviously time and money involved with this solution.

Best of luck,

BR

Sounds liked funds are tight.  You can reduce your total investment if you sell paper lots to a land developer/home builder.  In summary you would do the leg work on the front end to ensure the deal is developable and prove  the property profitable to a developer/home builder.  So step on would be to get a home builder/developer on board to take down your lots.  Step two is to get a concept plan/plat approved by the city.  

Every city does their concept plan/plat process differently, however I find it strange that a city would require you to have complete construction documents prior to platting.  Typically studies (traffic, drainage, utilities) are required at the planning stage along with a plat/concept plan but not construction documents.

You may be able to get 14 -16 lots on the deal unless you can reclaim some of the floodplain.  What are these size lots selling for in this area?  What are home builders paying for lots?  Do the numbers work out?  

Also If you want to stay in the deal and make some more money after you sell paper lots you could stay in the deal to manage the design and construction for a fee.

Best of luck to you!

BR

Thanks for the tips David. Expensive to me is $10k. By mainly any expense not budgeted related to an unforeseen repair is expensive!

Greta suggestion. Thanks!

SF property. I have a fear that for example if there are heavy plumbing repairs that require a building permit/city inspection that the inspector may find lead paint or old wiring that doesn't meet current code......then empty my wallet! Are there any "skeletons in the closet" I should keep a look out for when purchasing a property? I don't want to get into a deal where I think there are only small repairs and then find out that something is not code compliant and then spend more money than expected. While I understand rehabbing is not without its hidden risks, I hopping to learn ways to identify the signs that indicate more repairs. Ben