All Forum Posts by: Calvin Lipscomb

@Jay Hinrichs I see that you're a broker yourself so I can see where you come from on this point. 

I am not stating that you shouldn't use a broker to find the deals. But, as you already know, this is a relationship business and you can't have a relationship with all the brokers in the country that could send you deals. However, if other people (inexperienced syndicators) can build solid relationships with local brokers so they start getting deal flow then it will help you long term to build your portfolio if these deals are solid deals. 

I agree that not everyone is a good partner but, again, this is a relationship business.

NOTE: This post is about listing lender denials and how to overcome them. Let's keep it on point so it could be a valuable resource to others.

@Elisha Salgado

Multi units with no money down. This is possible, but it is the rare exception rather than the rule. You need a right set of circumstances for this to happen. 

Seller. Owned for long period of time and want out. Doesn't need the money and willing to carry the note. Property needs work and tenants are difficult to work with. Could be no tenants too. Property not easily financed due to condition. Property probably been on market for long period of time, and has an unrealistic asking price.

Buyer. No money but willing to put sweat equity into property. 

Odds of obtaining such a situation, probably 1 in 100. 

Terry

Just curious don't you think that one of the riskest ventures would be to put up your good name and credit or cash for a total begineer in the space.. I would Not recommend this or do this in a 1000 years.. 

why would anyone want to go through someone's learning curve and there is one.. when you have a bunch of qualified expeirnced operators to choose from.. 

I get it that folks have to start somewhere and it can be tough but it should be tough.. with the risk involved to the investor.

@Ivan Barratt  @biranburke   curious on your guys take..  are credentials and credit for sale like this common in your guys world.. at least for someone beginning ?

Seems to me you would ( if the deal was good enough) take it on and make the person who brought it a non controlling partner why would you risk your good name and credit like this..  am I not getting it  ?

1.75Mil + 50k for upgrade = 1.8Mil

7 Units

Total Rents about 12K.  Proforma: 14K.

100 yr old house and age shows on the property.  Not much upgrade at all over the last 100 yrs except one.

Will this help?

I would say don't buy just because you don't even give the most basic info to base a decision on. 

Just one reason not to buy.   100 years old. You only have $50k for renovations. 

Next. 

Did a quick search. Found about 5 South Shore properties currently for sale with Caps 10 to 15% for buildings less than 10 units.   Move in the 16 to 25 unit buildings Caps are around 7 to 9%

Now do keep in mind the Caps provided by the listing agents are often on pro forma...which half of the time is usually BS 

I have recently talked to a property owner of a home in the Philadelphia area and her asking price is 130k. The property is a three bedroom two full bathroom corner house that is a little outdated. The property’s roof has been serviced recently and all of the electrical work has been done. My question is what should my target price be to get it under contract and how should I go about financing a buy and hold deal without much money. Any and all suggestions are helpful and the property itself is in a good location of Philadelphia. Thank you all in adavance for any advice received.

-Byron Kearns

Ditto what @Account Closed said. Most sellers are not going to be handing out their leases and rent rolls and tax returns to every Joe that knocks on their door looking to buy. The basic rent roll information should be provided by the listing agent. But once you are under contract and as part of the attorney review and due diligence you can ask for and demand all of that information. Trailing 12, 2 yrs rent roll. P&L from the property manager...all that good stuff should be provided promptly after the seller has signed the contract.