All Forum Posts by: Jason Eyerly

That is an excellent deal! I'm genuinely impressed with the numbers here. I'm assuming that you didn't know they wanted to stay in the property so badly when you bought it, so what made you comfortable with the purchase at 50% of value? What was your initial strategy? If you were in my situation, not having a lot of cash, what would you do to get your initial $27,500 back ASAP to finance another purchase? 

Oh, and on a side note. I would recommend looking at the S&P500 as it is more in tune with what is really happening than the Dow is nowadays.

Is there a question here? As an equity trader I can tell you your returns in real estate will be much greater than sitting on something over 10 years. I would follow @Michael Evans advice as he is 100% correct in his explanation on predictive models and options.

Sure, there are correlations on the market. However, if you see one and act on it, your timing will not be perfect. Are you going to be comfortable with the drawdown in the meantime?

"Faber Est Suae Quisque Fortunae" - Appius Claudius Caecus 

It's latin, but translates to "Every man is the artisan of his own fortune."

Better get a contractors estimate and scope of work completed to show your prospective buyer. However, I'd go for the $40k. Your goal is not to make an investor happy with what he pays you, but to create a win for the seller, yourself, and the buyer. If your rehab costs are accurate (seriously, get an estimate) and you can present a good deal to a buyer with this info, then who cares? Everybody wins, and everybody is happy.

I don't think you are being very realistic, or caring about the tenant. That is a person you are dealing with. A person that has possessions, a need for shelter, etc. You purchased the property and with no advanced notice send a letter telling him he'll have to be gone by Sept. 8th, and you MAILED it on August 8th. Not only that, but you say classes start Aug. 25, so you sent this letter to a tenant that is likely a student away on vacation, and want him to leave two weeks after he gets notice (maybe). You are walking a fine line here, and I think any judge would find that outrageous. If I were you I'd consider offering him cash/helping him move or find a new property or something. 

Maybe even get your license and work as an agent in your down time? Those commissions can add up to a 10% down very quickly!

You could use HML to flip homes in the mean time and get to know the market. Alternatively, you could look at FSBO. Depending on what you put down for this property, you may have some equity you can use towards another. Your best bet is probably going to be finding a partner to continue moving forward with. I plan on starting with flips myself to build my cash reserves and allow me to get a few FHA homes over the next 3 years I will be spending in Vegas. Then you can take that money to make down payments on other conventional mortgages and loan methods, eliminating the need for a partner. Once you reach a certain point you won't be using conventional mortgages anyways!

@Mike Hartzog Could you provide an example (nothing specific, just numbers) on doing a loan mod in the scenario you mentioned? Just so I can see the numbers to make a better sense of the strategy? I was wondering how you'd calculate what the note would be worth if it became re-performing. I wouldn't want to hold a portfolio starting out, I just want to build cash, and recycle.

Well, I've found Example 3 on Trulia. It was definitely to good to be true, I'd be selling this note while it's in FC as well! The estimate of $35,000 as is seems accurate enough, but I'm not sure where they came to get ARV of $65,000. I personally don't think I'd put the work into it. I broke it down as follows:

• Pros:
  • Close to transit
  • Schools within 1 mile
  • Estimates at $35,000
• Cons:
  • In A Medium Crime Area
  • Bordering High Crime
  • Schools Rated A 2!
  • Lots Of Arrests Locally (Even Recent)
  • 5/1 Townhome Seems Rare & Difficult To Sell

My summary of all that is that I would offer $8,000 to be generous, and leave myself room for PLENTY of renovations, just to get it to rental status, not even retail. Then I'd put a tenant in and try to sell it. Although all in all, I think it'd be better to just pass this up!

@Bob E.