All Forum Posts by: Caleb Mclamb

@J Scott lots of good ideas thank you, he already has a deal. It is a REO quadplex that was brought to him by a local realtor he works with who is representing the bank. So he plans to purchase it, do modest renovations and flip it. We would each put up 50% of the funds and each receive 50% of the profit.

We are meeting for lunch on Saturday, I will try to find out as many things on that list as possible. Also, I plan to find a local lawyer to help with the paperwork, will that be very expensive?

Hello BP,

I am just getting started and have been active in my local REIA, I have been approached, about a week after a meeting, by a member who has offered his mentorship and would like to do a deal with a 50/50 split. He is an elderly gentlemen who seems to have been in the business for awhile.

Of course I am exited and happy to have struck up a conversation with the right person, however I want to trust but verify. What are the best ways I can verify their credibility when I myself am new in the business and don't have the connections to just ask around?

Is there any way I can look up tax records to see the properties they own? To see what they've bought and sold in the past few years? 

As I said I just want to trust...but verify.

Thank you for any insight

@Rusty Thompson conventional, its not a area i would owner occupy, bout 20 min from work and a little bit ruff area but not bad at all. I am searching for a duplex as well to do a FHA

@Rusty Thompson  buy and hold for passive flow, at 640 for one property thAt looks great on paper

And yes I realize i have allot of missing numbers this analysis has yet to begin. 

one question, should i focus the properties value based mostly on comps even though its a four plex or should i use MFR methods?

Thank you for the quick responses! I plan to do a drive by tomorow and then possibly schedule a viewing dependin on the looks of it. I will say the rent at 550 is sadly pretty much maxed out for a one bed one bath for the area so regardless of renovation the max they would ever go for is 600

Hello BP, 

I realize that I am not including lots of information and that there is lots and lots of research needed to analyze a property. That being said, I am just asking if this property is worth further analysis. 

It is a 1 bed 1 bath 4plex

asking price is $120,000

gross monthly rent is $2200

nothing is stated about any repairs being needed and the pictures seem to show that to be true. 

The zip code has a small growth of population, is 38% renter occupied, has decent rent prices overall, and a very avg. amount of rental units. It is in a C neighborhood that is not a high crime area.

I feel that this 4plex has great potential being that it almost meets the 2% rule, and that it is is undervalued based on a 10% cap rate. 

Using the 50% rule it would cash flow at $640 a month (after my mortgage payment on my 20% down 4% loan) which comes to $160 per unit. 

Once again, I have done a very brief overview of the property and am wondering if it appears to be a steal?

@Kingsley Siribour  hey now! Im NOT in analysis paralysis haha i'm in...learning mode? But seriously, i agree  there is no substitute for experience i just hate to go it alone my fist time around

@Eric M. i just want to prepare myself as much as possible before propositioning myself to someone and look dumb. Ive gotten lots of great tips and things i wouldnt have thought of otherwise from yall.

@Eric M.  so what would you think an experienced flipper would want to structure a deal as, if at all? Im almost asking for a mentor but in a way that I can bring something to the table.