All Forum Posts by: Thomas Fish

One of my business partners has a decent motel package for sale. I felt it was worth running by everybody here at BP:

It is a 16 unit motel, plus 2 apartments, plus a 2 bedroom house. He is selling it on land contract, and here are the numbers: It is grossing a little over $100,000 a year. Expenses, including the land contract payments, are $50,000. So it is net cash flowing $50,000 a year.

His asking price is $275,000 with $100,000 down. BUT... he will accept $33,000 down with a reasonable trade (car, van, boat, RV, another house, etc.) He will credit the $33k plus the trade as the full $100,000 down payment. And the balance would be the $175,000. (He's somewhat flexible on the payment, terms, etc. on the balance).

If interested, please let me know. You can write me here or call: [PHONE NUMBER REMOVED]

Thanks.

Tom

I don't get it. I thought this WAS the Bulk REO forum. That's what it says.

Commercial Bank Tapes, right here. I can set you up buyer-to-buyer to get commericial properties fresh off the bank-servers. You specify what you want, the tape-buyer delivers an inventory to you. You cherrypick. Do due diligence and then close. $5m minimum. Transacting daily.

Background: I joined Doug Fath's student-housing program with the understanding that his "guaranteed funding" component would actually produce "guaranteed funding." Using his due-diligence model (which is very extensive), I found,secured, and submitted 30+ student-rental properties for the guaranteed funding. I am 5 full weeks into the 8 week program; and so far, NOTHING has been funded. They haven't even really been looked at! Which leaves me holding the bag on some VERY primo college properties.

Result: I now have 30+ properties tied up that are excellent college-rentals. Each one is 65% to ARV or better, cash flowing--or able to cash flow--at 1.5% of cost per month or better. Some have college renters already in the properties. Others are ready for them. All of the houses fit Doug's stringent due diligence criteria. In spades!

What I Am Looking For: I am now looking for investors to work with me in one of two ways:

1. Pay me an assignment fee of $10,000 (for each property that you want) and take the deal over completely.

2. Partner 50-50 with me. You fund the deal, I will manage the properties for 5 years, sharing the cash flow. In 5 years, I will either buy you out or walk from the deal.

3. Other ideas that you may have. I am flexible. I am currently sitting on top of some very good deals with no signs of Doug's "guaranteed funding" ever coming through. And even if it does come through now, I am thinking it'll only fund 6 - 10 max. Which still leaves me with 25+ properties to work with.

Please write if interested.

Thank you.

Tom

35 deals: I actually found about 45 but pared the list back. How did I find them? Mmmmm. some of that is a trade secret, but to give you a summary: I found one guy with a portfolio of properties in several states, and because of mismanagement, he was in foreclosure on everything! I found one lady who had hard money loans on 6 college rentals...and no exit strategy, so the lenders were knocking on her door. I sat down with one neighborhood developer who had a whole 'secret list" of properties and individuals on the verge of collapse. Just a whole lot of different things like that.

The criteria; Purchase price 65% of ARV (many of mine are in the 50's), cash flow at 1.33% of purchase. (many of mine are at 2+) Relative closeness to the college (mine are 1 - 5 blocks). Other college kids living on the street. (Most of mine either have college kids as neighbors or college kids already living there). Truly, I have some seriously excellent college rental properties. ALL of the 35 qualified under the set criteria...but okay, let's be realistic...maybe only 6 - 10 can be funded by the "guaranteed funding" program. 6-10 is a far cry from 0. But as I said, my jury is still out. There are 3 more weeks left in the program. A lot can happen in 3 weeks.

I have a 10 property package sold on a single land contract for $192,000. The terms are $4000 per month for 48 Months. Period. No interest, no balloon. The buyer is a reputable rehab company who is fixing the properties up and renting them out. Payments begin June 1. The properties are in Michigan: 3 in Saginaw and 7 in Detroit. At $80,000, that would represent 41 cents on the dollar. A decent discount. The contract is assignable. If interested, please write me at [EMAIL REMOVED]or call: [PHONE NUMBER REMOVED] Thanks. Tom

The program puts you through some very good and prudent due dilgence exercises, not just with the houses but with the colleges and the area as well. Then it gives you an excellent, iron-clad lease to use with the student-renters. And a great property management system. / It's a great program; and again, I would recommend it to anyone interested in this niche market. But I am starting to realize that he completely oversold the "guaranteed funding" component of it, which basically stated that, if you bring him the deals that fit the funding criteria, he would either (a) pay you an assignment fee for the deal, (b) partner 50-50 with you, or (c) get one of his associates or contacts to fund the project. Guaranteed! He stresses this component. In fact, he gives you the "guaranteed funding" module before you even sign up for the course. It's the main reason I (and probably many others) signed up. But you be the judge: 5 weeks into an 8 week program, 35 deals sent, and not one of them funded yet. It's really the only disappointing component of the program. And trust me, if he all of a sudden starts funding my stuff, I will eat every word I've written here and promote his program bigtime. Because every other aspect of it is great. It's the best and most refreshing program I've seen in years.

JES is out of Portage, Indiana....and thanks for the opportunty to clarify: the company's full name is JES Properties of Michigan. (There is another JES Properties out there that I know nothing about and is totally unrelated to this beef.) The JES I'm referring to is JES Properties of Michigan out of Portage, Indiana. The attorney he picked up was in Michigan.

Well, I AM doing that now. Doug's "guaranteed funding" program seemed to take all the hassles out of having to do that. I really like his due-diligence system. He has a very extensive submission protocol that, in all reality, takes a good week to put 10 properties through. So I focused the last 5 weeks on finding properties to submit via the system. And now, you're right, I have these prime properties...some with students already in them...and although I would love to hold out for Doug's "guaranteed funding," I am not so sure it is going to come. And the season for getting college students lined up for next year is upon us. Soooo... I AM looking for other investors now. Thanks! Tom

(The "In-and-out Burger" sounds a little bit like the language used in A Clockwork Orange.)

Thanks for the info, Josh. I was staring pie-eyed at my computer screen this morning thinking it was something on MY end.

This site is a great service, and I am sure we ALL appreciate it very much! Thank you!