All Forum Posts by: Denny Le

@Wayne Brooks Thank you for the advice, I will ask if there are any alternatives.  I currently have an easement that would be 30 ft to the new duplex, but for some reason, the city planner said that I cannot use that as an access point.

@Jay Hinrichs I think it does meet the minimum lot density because it is zoned R-9 with 19,500 sqft lot.   Do you think Olsen Engineering would be able to do something that could possibly over rule the city planner?

Hi BP!

I went to the city front desk and asked the planners to check my property to see if I could build anything behind my property since there is 19,500 sqft lot total on my land.  I received an email saying that the easement road on the side cannot be the access point for the back.  

Is this the end of the road or is there something else I could do?  My parents gave me the idea of writing and letter saying that it could be better to build a property because I would be paying taxes, rather than leaving the land and not doing anything.  

Do you have any suggestions on what you have successful done or have advice?

Thank you!

Denny

Hello BP!

I have a question regarding the process of how to buy distressed properties that are currently bank owned before they go to auction.  My partner and I think we found some good leads on vacant or distressed properties that are currently bank owned.  Our problem is that we can't seem to get in contact with anyone that knows how we can buy these properties directly from the bank.  We have called a number of banks and title companies and have had no success.  What advice do you have?

Thank you!

Denny

Hi BP! 

I have been marketing through direct mail marketing and I finally have a motivated lead! The seller has a property that he bought from an auction for $147,000.00, but he didn't expect the property to have people living in it already. I asked him if they were squatters, and he said "Yes, that's the word for it!" I stopped by the property and noticed it definitely needs fixing up, from the roofing to the insides (saw through open windows).  The houses around the area are a lot nicer making it so this property can definitely gain some value. I just wanted to post on here to ask about how to structure the deal, so both the seller and I will win.

ARV: $205,000.00

Holding Fees, Buy and Sell Fees, etc.: $16,000.00 (this is an approximate guess)

Profit Wanted: $20,000.00

Repairs: My guess is around $20,000.00 (I will get a contractor/inspector to walk around with me if I can get a contract with the seller)

For now, does that mean I should offer the seller: $169,000.00 - repairs?

If this deal does get accepted, I will need to find private money lenders or hard money lenders, but with less than 20% down payment.

What do you guys think? 

Thanks in advance!

Denny

Thanks for the replies! @Say Teoh@Alex Chin@Derrick Aragon @Austin Youmans

@Say Teoh Thanks for the advice, I will search through the county and check for liens  on the property. Once I have a property under contract, I will do my due diligence and remember to search for liens.

@Austin Youmans  I was able to contact the seller and give him a price that I am interested in buying the house for, which is $179,000.00, not including repairs.  I'm going to call him back this Saturday to see if he's interested.  

Hi BP! I'm starting to get a small stream of leads coming in, but I am in need of a real estate agent with access to the MLS in Washington state. Can someone partner up with me that has access or help me find one? Thank you in advance! Denny

@Alex Chin Thanks for the response Alex! I was hoping to structure this deal in a way where I would sell the property as soon as possible. Thanks for the expenses that are related, and they will be related to short term holding also, but I hope to get this back on the market within a month or two.  Do you have any ideas how I could structure this deal to make a profit and list it back on the market as soon as possible?

Thanks for the responses! @Kris Haskinsand @Kyle Parks

@Kris HaskinsThe location seems very good, there's a WinCo Foods, 24 hour fitness, and the mall is about 5 minutes away. 

@Kyle ParksI was able to get in contact with an agent, and she said the comp for this property is $220,000.00 to $225,000.00.  I can only guess right now, but they have viewed zillow and are guessing the property will go for approximately $200,000.00.  In what ways would you structure the offers to make the most sense? 

Hello BP!

I've run into a brick wall with what I should go about doing with a potential property that I've spoken to a homeowner about.  I'll list the information below:

Property Title: Washington 3Bd/2Ba

Condition of Property: Good

Repairs Needed: Gutter on the back of roof (have not checked out property yet, but will right after I post this)

Repair Price: undetermined

Asking Price: Owner has no idea, just wanted to see what is offered

Property Price: $200,000.00 (Zillow estimate)

Monthly Rental income: $1100.00

Some ideas that I have come up with:

Wholesale Deal:

$200,000.00 (0.70)

$140,000.00 - repairs - wholesale fee

or Seller Finance deal:

$200,000.00 (0.95) 

$190,000.00 - repairs - (fees, I'm not sure what I should include)

Down Payment: $5,000 - $10,000.00

Interest: 5% - 6% (Pay owner: interest only for one year until I find an end buyer)

If I do seller financing with 5% interest, interest only payments, and $7,000.00 down, the payment per month would be $804.17. Then the assumption is I make around $295.83 per month (not including expenses)

If I sell the property for $200,000.00, I could potentially make $10,000.00?

I know I've missed a lot of numbers (please include them in your post if you comment, thanks in advance!) 

Can you guys help me structure this in some way? I'm not even sure if the numbers are good.

Thanks in advance!

@Jeffrey H. Thanks for the response! I've looked up chattel loans, and emailed a few companies to see if they would lend with the situation that my parents are in.   They're hoping to pay around $100K for both of the homes, but I was conservatively adding $50K for the hookups and miscellaneous expenses.  I've found a company in Oregon that will build, and ship both double wides to where the land is for $50K each, and possibly receive a discount on the second building.  I'm not really sure how much the rent would be for a single wide in their area, but that's definitely something I'll look into. Thanks for the advice!

The numbers are really dependent on the interest rate, and the length of the loan, but the numbers so far are:

Total Loan: $150,000.00

Down Payment: $30,000.00

Loan Period: 15 years

Interest Rate: 10%

I plugged these numbers into zillow's mortgage calculator and got a monthly payment of $1408.00

Rental amount for double wides that they currently own: $950.00 each

$1900.00 - $1408.00 = $472.00 /month cash flow

Cash on cash return: ($472.00*12)/$30,000 = 18% (Is this a good amount?)

@Ken RishelThanks for the response! Yes, you are understanding correctly, but I am not looking for a hard money lender, or private loan because those typically last for only 5 years. Jeffrey was able to give me a response with additional options other than the ones that I have already looked for.  Do you know where I can find such a lender for investment purposes?