All Forum Posts by: Charles Willie Harris

I'm working on my very first Subto and that I'm trying to Wrap on Seller Finance. What I need help with is, how do I best determine what the Wrap purchase price to offer to a buyer and what down payment makes sense to ask for?

~~Property Details~~
2/1 - 1,000 sq ft
Current Value: ~$122,000
Purchase Price: $102,000
ARV: ~$180,000
Current Rent Rate: $1,200
PITI: $745 (Interest is 5.375%)
Mortgage Remaining: $79,000

~~Est. Entry Fees~~
Repairs: ~$35,000
Arrears: ~$22,000
Cash to Seller: $0
Closing Costs: ~$3,000
Marketing/Acquisition: ~$1,000
Misc/Maintenance: ~$1,300

The seller basically wants out of their mortgage and arrears. The house has been vacant for some time and needs a lot of work.

Where I'm At Now:
What I planned on doing is, to borrow the $22,000 of private money to bring the mortgage current (Arrears).

Then I wanted to utilize Subject-to on the $79,000 mortgage remaining and since it needs a lot of work, I'd Wrap the property as-is to try and keep the Entry Fees down.

Now, this is an ugly house now but once fixed up, it could be worth $180k easy. What would be a reasonable Purchase Price and Down payment here for a Penalty Box/Homestead buyer? I think I'd need at least $26K down from the buyer + closing costs to cover the $22K private money and whatnot.

Now, I don't see how I could market such a property (that still needs $30K of work) for anything more than $140,000 and $30K down seems a little steep?? I guess with good terms (like a 30-year term at 9.9%), I could make it work?

Looking for some feedback here!

~Traveling (road trips, international travel, etc.)

~Cinephile (You'll want me on your movie trivia team)

~Languages/Foreign (I've taught myself a bit of French, Spanish, Arabic, Turkish, Italian, Japanese, and German)

-Cooking (The dishes are always piled up!)

-Mixed Martial Arts (I watch pretty much every UFC card)

I'm just outside of Des Moines, IA but I have a lot of useful connections that I can hook you up with!

Let's connect.

Ironic.... 

Jalen, where do you live?

I'd recommend joining and attending a local Real Estate Investing group and start networking and talking to other investors in your city. Find out what they buy, why they buy. What type of investments are working for them the most in their area. Take them out for coffee and pick their brains. Try to become their friends and learn from their experiences as buyers so that you can find ways to understand how your local market operates.

Yeah, feel free to hop on the next virtual DSM meetup like Jared suggested!

I've been using it for about a week in a digital manner--just using Google Maps in conjunction with the desktop app in finding and validating properties that "look promising".

For the most part, I'm really liking it, especially in terms of some of the customization in the postcards and templates. Some of the options feel like they nickel-and-dime you and it's very early in me using it so it's hard to tell how effective it'll be in terms of reaching the right motivated sellers.

I've been using it for about a week in a digital manner--just using Google Maps in conjunction with the desktop app in finding and validating properties that "look promising".

For the most part, I'm really liking it, especially in terms of some of the customization in the postcards and templates. Some of the options feel like they nickel-and-dime you and it's very early in me using it so it's hard to tell how effective it'll be in terms of reaching the right motivated sellers. 

Yes! Some of them might be interested in liquidating and selling off some of their older properties if they don't have the time and resources to hold onto them any further. My first deal was on a corporation-owned property. They sold simply because they didn't want to be a landlord anymore and take care of the repairs.

This is exactly the kind of forum I was looking for.

Now is the best time to start virtual!