All Forum Posts by: Danny Colacicco

I have read about that as well, but it doesnt let the loan value exceed the purchase price.  I am not looking to get out more money then I put in, but I am looking to get a loan for the purchase price + renovation costs (60k in my example)

Hypotheitcal situation... I am looking to purchase a property in Baltimore City for 30k and will be putting 30k into it at which point ARV will be 100k. I will be using this property as a rental and because I do not want to keep my cash tied up and would like to use those funds to invest in another property, I was hoping to refinance. I have spoke to numerous mortgage companies and the consesus has been that you need to wait 6 months to be able to use the appraisal value of the property as opposed to the purchase price. Seems that this is a Fannie Mae regulation that affects all companies that I have spoke with. I was hoping to be able to refinance sooner then 6 months after taking tittle. My question therefore is:

a) does anyone know of a company that I can use to refinance within less then 6 months but wont cause rates to skyrocket?

b) are there any other options that one would use to approach a situation like this?

Thanks in advance!!

Haha I will definitely let you have the opportunity to take a look =]

Feel free to call with any questions.

Thanks for the advice guys. Im gonna go with sell to the first qualified buyer as this is personally the type of wholesaler that I would prefer to deal with =]

I was just curious how others would approach this situation...

We put a deal under contract this weekend and when we sent the listing out to investors yesterday evening. By this morning we already have 10 investors that are very interested and going to look today. As far as im concerned, we have to options:

1-Give it to the first person to return a signed assignment agreement

2-Allow everyone until the end of the day (or maybe even two days) to submit a bid

In my opinion, the second option just makes us seem annoying that we have an asking price and now making the investors bid, but at the same time we have to be fair to ourselves (though we have already allowed for a nice assignment fee)

What would everyone else do??

Thanks!

So I recently came across a great property but its a short sale and in speaking with the bank, they dont allow assignments. I know that I can do a double close or purchase in a trust or somthing of that sort, but I was trying to avoid all that. So I went to an investor that Ive worked with before and explained the situation and asked if I put in the deposit for the property and submitted an offer that was accepted, would he be willing to just pay the wholesale fee and just close on the property without me actually ever being involved and he was okay with this.

First question is, should I have the investor sign somthing stopping him from submitting an offer himself on the property as I will be providing him with pictures and details (and perhaps even a tour) of the property to make sure he is def interested prior to submitting an offer myself?

Second question is, is there some kind of contract that should be used that would declare my wholesale fee, ensure he pays the fee, and allow him to take over my offer to the bank? (I dont know if the take over my bid part is necesary as I believe anyone can close regardless of who actually submitted the offer to the bank)

Anyone ever do anything like this??

Thanks in advance!

Does anyone know a good RE investor friendly attorney in the Baltimore area?

Thanks!

In a deal like this do you put it under contract and assign the deal or do you do a double close and just take into consideration the additional closing costs you have to pay in closing the deal?

So I know that Ned has said that he like a much higher cap rate so I do think that I need to get the price down a decent amount from 300k but for other investors that know and invest in the baltimore area, for multi unit properties in the 250-300k range in greektown, what kind of cap rate do you require? Would you consider 10% cap rate a good deal (5 apts at 270k) or do you think this needs to be way down to a price like 225k (12% cap rate)?

So I redid the numbers. To allow for defered maintenance I assumed a maintenance percentage of 9% above the norm of 5%. Mgmnt I alloted 8% and Vacancy 5%. All of the other expenses come from the current owner (tax, insurance, water, gas, electric). Lastly I multiplied the total expenses by 1.05 to allow for a 5% safety net. Currently the owner is asking 300K which give the investor only 8.94% Cap Rate after my fee however I enetered a goal price of 250k which gives a 10.73% cap rate to the investor after my fee. Does this look better?