All Forum Posts by: Tyler H.

Hi BP! Curious about the locations of the "majority" of the foreclosure auctions in LA County....

I am aware of, and have been to, the auction.com properties at the Norwalk double tree

I am aware of, but have not been to, the auctions in Pamona

Where else is a common auction spot? How are these split up? I.E. certain major servicers use one company or another?

And lastly, if you are in the market to purchase foreclosures, how are you keeping track of the different auctions, and locations? Using a service like propertyradar?

THANKS

So to keep this thread specific, my question is related to ROI expectations on a higher priced property. Should profit expectation rise with the price of the property?

Analyzing a deal with a client friend, here is the quick and Dirty. Sales Price, $725K. $150K down. Estimated repairs, holding costs until sale, AND cost of sale equals $800K. $4K monthly holding costs if time runs over "anticipated" duration.

Lets keep it simple, So basically every dollar over $800K is profit. Target sales price is $850K (possibly more). If all "goes as planned", a $50K gross profit would be expected. What are your thoughts? 2 or 3 months longer than planned, OR a 10K surprise during rehab brings profit down to less than $40K. (still 20-25% COC) It sounds like a good profit, but in relation to large sales price and holding costs makes me hesitant. Would be a no-brainer on a property less than $400K, but curious on others opinion who Rehab / FLip higher priced properties??

THANKS

@Charles Kao I would love to get into something larger, but myself am limited to around $250K to invest.  I figured that would put me in that unit range depending on price per door.

Of coarse I could partner up or go another route, but those options aren't on the table yet.

Where would YOU stick an extra $250K right now?

Curious on the BP pro opinions on where they are planning to invest this year?

I have a friend who got in a few years ago in Vegas and has seen nice returns, but it seems some of the big players are selling off now and moving elsewhere. Some parts of Texas...

I know some were big on Nashville some time back, but maybe that has also hit its end...

I plan on diving in to a 10-15 unit sometime soon and would love to hear others opinions!

Thanks!

OK so I have seen similar posts for previous years, but what about 2018??

I am looking to acquire some MFH units this year and its obvious I need to leave California to do it.

So far I have heard that Nashville is good.... I would love to hear from you MFH Pros, Asset/Fund Managers, ETC.

I have a client who was in contract on a small investment property in which he found a company that would "broker" the relatively small 50K loan. (80%) There was a number of red flags and horrible communication.... To make a long story short, my client was strung along and not only did the rate "change" 3 times, but there were so many last minute "conditions" that came up, my client cancelled it all. This was a conventional investment loan on a property in CA. The rate quoted was first 4.5%, then the loan app had 4.9%, then the first CD had 5.1%. (supposedly rate locked huh?) All along no points were being charged on any disclosures.... But then on the very last CD, he slipped in an origination charge of 1.5%, and we could also see that he was being paid around $1800 from the lender. Now I am told that originators can no longer make money on the front AND back end in CA for conventional mortgages.... So how in the world could this originator be pulling this off? Shadyness aside, the only thing I noticed was the the bank he was putting the loan through was in TX. So by putting the loan through a TX bank, can he legally avoid CA laws? Or is he just pulling off some major fraud? Oh and the appraisal fee?... $700 with a $300 reinspection fee!!! Maybe the appraiser drove from TX? :)

Actually I just sold the parcel. The buyer will be subdividing into 2 lots and building custom homes. They took the time to do proper due diligence and had a civil engineer look at the entire project. They were told it will probably take 1-2 years just to get through planning! It will take some work, but the buyers got a BARGAIN price, and when they are all done they are going to have multi-million dollar estates.

Looking back, not sure how many lots would have been possible with all the restrictions....

I never understand clients that want to "eliminate" the buyers agent..... You DON'T pay for their services! Clients trying to sell on their own at least have a valid motivation of saving money, not the case when buying. Best advice given already is to use a broker that will rebate a portion of the commission. Now not only will you receive professional representation, but you will save money as well. Win / Win.

It doesn't hurt to ask! You say "Im unclear how the fee could be justified", but remember this is not something you as a buyer would be paying anyway. It really boils down to the seller.....

Also think about this.... What if the seller has another offer (through an agent) for $515K or 520K? Many markets are hot and houses receiving multiple offers right now. So if he WERE to sell to you for 485K, this would be no better than selling it for the $500K through an agent! Not for him at least, just for you!

Everything depends on the market, but how are you going to NET the seller MORE?

Get in to contract and open escrow! Just put 30 days in your offer! What am I missing here?