All Forum Posts by: Dave K.

Currently working with the seller on a commercial chiropractor office,2800 sq ft. on main level.(was a house at one time) with two residential apartments.  currently has a nice basement apartment($750 1 bed) and a 2nd floor apartment($600 2 bed 20 yr tenant).   commercial space is dead in this town, with plenty vacant, but residential rentals are hard to find.   Ive been talking with the city "planning and zoning technician".    Shes young and has told me via email that i can make it 100% residential.    Before closing she checked with the city lawyer and he basically said no way.   "you can try for a variance after you buy it".   Aparments on this street are nonconforming grandfathered in.  If you add one more unit you lose the other two.  Whaat??.  Selling realtor has been active in the town for 25 years, and mentioned a lot of turnover in staff and variances.    Heres a thought ive had.    Keep it commercial, as I dont think they will allow it to be changed back to residential, even though there is mulitfamily on both side of this property.  Ask to  2 more residential units.  so 5 units keeping the commercial status.      sales price to be $189k.   its bringing in $1200 for two apartments.  low for the area.    i have 2800 sq ft of space to income.  $2400-$2800.   seems im trying too hard to make this work.  very nice building with a 2 car garage.  1 block from bars, and restaurants.  few blocks from university and hospital.   talk me off the ledge..lol

I have a 4 unit in Big Rapids.    check the zoning map for rentals.   multi-family Rentals are only allowed on certain streets.   They actually state the tenants need to be related..  odd town

The check gets written to the real estate brokerage name or the title company name.   they hold it until your contract is signed.    Dont write a check to the seller.  

Hello everyone.  More wholesaling questions with relationship to closing statements.    When you enter into a deal with the seller, you must disclose your fee, such as a realtor does, and that will need to be on the closing statement, that both parties sign.    sellers price-$100K, buyer will pay $120k.    seems like there would be some pushback on the sellers side.. "why wouldnt i sell it for $120K by owner? "    

Maybe stick to 8-10% spread?

Thank you.   

We see this tactic in the grand rapids area of single family homes.   A good home will get blind offers, and overbids in two days.  even seen a sliding scale bid that they would go over any other offer by a $1,000, up to $30k over asking..   normal house, less than the most desirable area also..  $240k house..    Realtors are putting the house live, followed by an open house, and then looking at all offers after, creating a demand and competition.     

My wife is a lender.  They do rehab loans prior to closing.   They will loan up to the new appraised value once finished.   You have to use a licensed contractor.    I am not sure if they do this for income properties, or if its for single family only. 

Should not be a problem, as they have to abide by real estate law.  Could be quite the opposite.    They may be just happy to keep you as a client.     

My Wife is a loan officer and manager of a mortgage company, and has been doing a lot of these loans.    dm me for phone number.

I heard about one today,  where the seller had just listed their house  and they found a house that they wanted to buy before it hit the market, as this area is hot and generally homes sell in the first week. (sandbagging on realtors part?)    So their realtor wrote up a purchase agreement that she(realtor) is buying the house, that she listed, so that the client can show that to the mortgage person and get a loan for the new home.    Their original home for sale had only been on the market for a few days, and the realtor got it for $20k less than listing price.    My first thought was that she will be wholesaling this deal and selling at original price.     The home needs no work and is in a hot area for under $140k.    If indeed the realtor gets this house sold in a week, does she even get a mortgage or is she just part of a contact where title cuts her a check for the overage?

check your states laws.  in michigan our maximum sec deposit is 1.5 mo rent.    

When you tell the tenants that you will be living next door, you may get some pullback..  not a bad thing.  be selective.   their are good tenants out there.