All Forum Posts by: Douglas Gratz

 THAT is not all what it sounds like, i think it says i can use the AOS TO GET FUNDED sorry for the caps it went on by accident. I went to a lender with ihe AOS

 No no, i used the signed AOS to get it funded from a lender

 Nah their money stays in escrow

Jan 31, 2023

After denied denied denied for funding I caught a huge break! Was one month away from selling and we PRE -SOLD the first of two! Construction not even started!

Now,

1. with the AOS and 220k down payment deposit, non refundable, the lumber yard will lend wood with a 3% loan, the supply house, the same for windows.

2. There is probably more I can get loan on but overall now I will need less to fund it

3. With the AOS I will get funded!

Thank you g-d!

I have had the problem twice. 1st I just try to give them cash for the keys...if that does not work I put the water and electric in my name and keep it off, and lastly at the same time if they did not except cash for keys I explain the eviction process and how if you have an eviction on your record (whether this is true or not) I tell them landlords have a website that shows with a search people who have been evicted, so its in your "theirs" best interest to do this as smoothly as possible for the both of us. If they want to keep renting m you tell them the rate and have them sign a lease with 1st, the last rent, and security deposit....no I do not use the market value in that sense, I use it to know what it will be worth after I fix it....I mean that is one way you can figure out your bid. The more properties you are ready to bid on the better, because most of the time, 75% and up get postponed......I have not done an auction since they moved online, its HORRIBLE.  All your research means a lot less when the person behind the computer has 4 hours to do research before placing their bid where as in person is was 123 sold!

 Well its no longer the case, but at the time auctions were in person, so I just did some good research and would ask the current tenants if I could look around, and with that, I would have a good idea of how much I would need to fix it up and such was able to outbid others.  If the homes are vacant, I peak through windows, use my drone to see all around the homes, and that would give me a leg up when it came to how high I was willing to bid. Its all about figuring out how much it will cost to rehab, if you have a good idea you can bid higher than the guy next to you who did not do such good research and was topped out because he assumed the 100k full gut cost. 100k is what i assume I will need to fix a house if I don't see it and I bid going in that I will need 100k to fix it, if the numbers work, ill go for it. 

Overall it comes down to knowing your costs pre-auction so you can bid higher. After my first refi ever, on my first duplex, I knew what they will appraise for and as such I knew so long I was all in under 175k I was good , anything under was a bonus, and I , except for 2 of my duplex's ever was over 100k for rehab and acquisition

@Joseph Matsushima

I have some great cashflowing MF rentals and would love to be a part of this. I filled out the form, the three I put on it are:

932 W. Marshall St. Norristown PA 19401- Gross monthly revenue $2,700. I bought this corner home for $91,000 at auction, put $9,000 into it and it appraised for $275,000. Insurance said rebuild cost is $800,000, would I like to insure it for that or market value, I went with market value, cheaper premium.  I plan to convert it into a triplex once I get a vacancy, problem is, I do section 8 and demand is high, so when someone is moving out, I have a tenant before the last rent payment from previous tenant is made, its great!

321 E. Marshall St. Norristown PA 19401 - Gross monthly revenue $2,500 . Similar story here

810 W. Elm St. Norristown PA 19401 - Gross monthly revenue $2,500- This was my first rental and boy did I get lucky. It was at auction, I never saw it , but wanted to get away from flipping and into rentals, so at 15k it (5k down payment) I bid. I figure if its not worth it, I will lose 5k. I went to go see it and it ended up being a DUPLEX, which was huge because taxes are so high here that a SFH with a mortgage only cash flows $100-300, and at todays rates it would be negative, so it being a DUPLEX opened up a whole new world for me . Once I saw it appraised for $250,000 and I was all in for $87,000, it was game over, I bought as many MF as I could so long as I would be under 100k all in.

@Lance Hernandez

@Lance Hernandez Actually there is. I just closed on refinancing the land out of hard money yesterday, which gives me time to search for a lender, investors, and move some things around that could allow me to need less loaned money which may make. it easier to get approved. I have a lender but since m builder never built an investment of his own, the lender doesnt like that. For real though, he has been building for 40 years, cmon! Anyway the lender put me in contact with another developer and I spoke with him today on terms for partnering, if he's i  (hes already approved by this lender),so,if i can get him on board I am going to take 1-2 months to see what I can do about getting the budget lower by a min of 100k and we will start to build. If now progress happens within 5 months , it will be time to admit failure but not in a bad light. I will still profit and have learned so much. Time will tell. Will keep everyone posted

 Anytime, glad you like it, thanks