All Forum Posts by: David Mora

So I Was Cruising one day and Saw a FSBO on a commercial building.So I called the seller and saw the asking price was 395,000. She said she is firm on her price(only said she would reduce by 5k)anyway so i went home to do some research on the property and cant really find what i need! Tax records only show a value of about 150,000 and because they own it out right and have never rented it out (always ran there own business out of there)I don't really know how to come up with a cap rate or the gross rent multiplier to establish value! does anybody have any suggestions on how i can come up with a value for this place. As it stands i don't know if its a good deal or not>Please Help!!!

@David C. Thanks for the help on the analysis 

Thanks for all the feedback!

There are sold comps in the area as high as 1.7mil,As far as the Repair budget it could potentially get a bit higher however i believe i could get it done for 150,000

@Account Closed can you explain in further detail the way you ran your numbers i would like to learn more about how you analyzed these numbers to get the 5%

would you do this deal?

1,000,000 (Purchase Price)

150,000 (Reno)

1,500,000 ARV

So I wanted to touch on a few things about my experiences this year to gauge if I need to make more adjustments to my business model or just small tweeks to how i allocate my time. So This year has been such an interesting year for me I wanted to do something a little different and share my failures as well as successes.So this year as i said has been such an exciting year I have made some really good strides in the building of my real estate Investing business.I have Networked with and became associated with some incredible people! all of whom i am extremely thankful for there association.Several have really become friends as well as mentors helping me navigate the Investing waters.while others have well, with there brutal honesty have really helped as well.anyway,From a Pure Numbers stand point and time I have Put in a lot of time this year into really building my business.I have probable sumitted 30 offers(beat out everytime!!)looked at 100+ houses(in person)Went thru probable 150+ leads.Physically meet with dozens of home owners and wholesalers! Have gotten several put under contract or assigned to me! Now here's where i am noticing some issues with Things.I have been really trying to acquire properties to take on as Flips and because I have A Construction/Handyman Business as well, I would  be able to make a living wage while working on the flip as well.Which is great.. With that being said I have yet to be able to close on one for a flip.Everytime i'm there and have a contract something happens that screws up the closing wether it be shady wholesalers, asking for earnest money to be put in so he can release his funds! but at the same time even though i have the assignment of contract not providing the adendumn  putting me on title and and his agent wouldn't do it! so because of that i was not going to put earnest money in when the contingency period was already up(crazy right!!)or a broker who goes and even though i had contract (but was unaware  husband didnt  sign(shame on me!)does broker open to get higher offer for home owners and pushed me right out of the deal!!So here is where I would like an honest assessment of why I have yet to be able to close.Is there anything that i can do different that i currently am not seeing?any help and advice would be greatly appreciated!!

I Will Make an offer in the next 5 days

Thanx for the advice. I will definatly do that.

@Raymond B. Thnx for that I never knew that.Cool

@ jerry thanks again this has been extremely helpful im going to refer to tour blog to get some further insight into online tax lien auctions

@jerry thank you I will check that out. kind of Bummed tho.@ jerry with proper due diligence is online a good strategy?