All Forum Posts by: Bill Schultz

Has anyone seen this course? Something about obtaining private money and re-lending it at a higher rate. I would love to hear some reviews.

$700. I dont know if that was a typo or not but thats the kind of stuff I hate to hear. I run into sellers now and then with a property that litteraly needs to be torn down and if I offered them $700 or even $7000, they would likely get their gun out.

And Marks numbers seem all too common except in my area. I can buy a 3 bedroom ranch house for $80,000. The most I could expect to get for rent would be $750 a month.

I am frustrated with the prices of houses in my city. In the mls, the only houses under $35,000 are ready to be condemmed, and there are only 5 of those. The price point to make money wholesaling, you need to be under $50,000 but there just isnt much out there. Are other people finding the same things in their areas? Even for rentals, you have to spend $100,000 to get a property that doesnt need much work that will rent for $900 a month, nothing exciting there. I hate hearing about people buying a nice property for $40,000 that brings in $1000 a month. Same for flipping, there just isnt money to be made on many of these.

Joel

This is an older property in a downtown area. The leases renew every 3 years. The deli renewed last year, the office tenant 2 years ago. The office tenant has been there 7 years, the deli 29 years. They are pretty entrenched in the building. This seller is selling all his property to start another business. He has some higher end stuff that is out of my reach. I know this is not an excellent price, but I even in this market I have found very very few sellers wanting to hold seconds.

Uwe - I dont know much about the 50% rule but I assumed I would take the monthly rent divided by 2, leaving me $1250. a 30 year mortgage would be roughly $1250 a month. I understand using this rule, this would not leave anything for cash flow, but doesnt seem as far off as your equation??

Hello

I am looking at a building, half office space, half small deli. Total rent of $2500 a month. Taxes of $4800 a year. Tenants pay all utilities. Very little deffered mainteance. Seller willing to hold a small second. Any thoughts on this? Oh yah, seller asking $200,000.

I am in Wisconsin. This is a pretty nice neighborhood. It is water heat, with one boiler which is why owner pays. There is public electric meter for downstairs lights and an outdoor light. It could use a new boiler and some new windows. Not many sold comps in my city for 4 families. No brick 4 families have sold around here for less than $120,000 in the last few years.

I know the rents might seem low, but where we are these are pretty normal. We didnt have the big bubble here so nothing has fallen much. The only multi-units you can find here under $60,000 are ready to be condemmed.

Asking price is $120k.

I am looking at a 4 unit, 1 bedroom in each unit.
each unit is rented for $415 a month.
Taxes of $3300 a year.
Owner pays gas of about $200 a month.
Some deferred maintance, but a solid brick building.

What would you pay for something like this?

Thanks everyone for all the replies. I dont know that there is ever a good time for a $11,000 bill but this is gotta be one of the worst times with gas and consumer prices going up up up.

Yup it is going to be a special assesment. I would love to sell it now but worried what I might get out of it. On top of the $115,000 in liens, I have the stupid assesment looming that will have to go into the equation.