All Forum Posts by: Brent Coombs

I meant the positive cash-flow parts, not the money-draining-away stuff.

Curious about "ARV based on cap rate formula $76,133.33". Isn't ARV only guessed at by (conservative) current comps in the area, then the cap rate formula works backwards from there? Hopefully your numbers ARE too conservative; you will have your real answer in one year! Please keep us apprised. Cheers...

Hi James, The strategy you describe isn't called "double close" is it? (That refers to when two sales contracts are signed one after the other through a third party on the same day)?

But does anyone know if there is a usual name for James' strategy?  If not, there probably should be?

And is this a flip (as implied), or will it be a 'buy-to-hold'? Either way, great job James...

Ahh, thanks Mike and Dion. Your clarifications (and welcome) are greatly appreciated.

'Note' just means promise to pay, written as a legal document (which the Seller has already done with whoever they have their mortgage with).  So this Seller is basically financing the rest of the deal as long as you cough up $30k first, and you promise to pay THEM the balance of the agreed purchase price on THEIR terms thereafter (rather than you having to go to a Bank yourself for the balance).  So if you then want to on-sell it, you could write up your own 'Note' (at terms more favourable to you than the one you bought from this Seller) and agree to carry THAT 'Note', while making sure that you fulfil the terms of the original 'Note' until cleared.  If that sounds hard, then that's the reason most newbies (and I am one) don't succeed as wholesalers!  [If I am mistaken in my comments, please let me know]. Cheers...