All Forum Posts by: John Robertson

haha, Mitch, that's hysterical!! Wow.

I'm in the middle of buying a few too. Same old paper pushing on all of them. It's amazing (and amusing!) how the lenders bumble**** their way through these.

Just out of curiosity, when you bring a money partner into the situation, how much of the profit do you give them?

The scenario in question involves a $6MM property. It will be flipped, and the money partner will need to invest about $1MM even. We expect about $4MM profit. What would be the typical split on the profits?

Any info on any other sized deal ($500k, $1.1B, whatever :D ) will be greatly appreciated as well.

Informative AND amusing topic--wish I had more time to read up around here!

Just to chime in, my partner and I do bulk deals and we're also with another company that sells 'em onesy-twosy (not related to bulk).

We're getting some amazing values in MI on the bulk side. We're getting rehabs at 5-15%. Percent of what though, market value? There doesn't seem to be a real market value, all we know is the price is low enough to incentivize investors and cash flow when they're rented.

That 2nd company I mentioned that buys and sells REOs individually, we do have some luck. We work in CA and do occasionally see property available in the mid 60s to high 70s. Those are pretty uncommon. They're given to us by brokers working with banks, not the banks themselves. But we have a LARGE investor list, and when the discount is that good we generally find a buyer within a few hours, no exaggeration.

I'm still real green, but it's out there, it's not all chasing bigfoot. Sure feels like it sometimes though.

(Also, props on the new smilies! :zzz: )

haha, I went to school in Stockton, if it weren't for alcohol weekends would have been excruciatingly boring :wink:

Well, you know that area a lot better than I do, but I didn't read a single reason "why not." If you have the money for it, from what I read there, it only makes sense.

Jon, I really appreciate that post, thank you.

I just evaluated a building the other day for my company and did a *lot* of thinking/math to come up with that formula. It's an excellent post. The less thinking/math, the better--I wish I would have seen it sooner!!

I've heard you can get $250k of unsecured corporate credit if you have a corporation that's aged 2+ years. I honestly don't know much about it beyond that; I've never built corporate credit or had it built for myself. I'm networked with a fellow who does and he may be showing me how to do that soon.

This necessitates acquiring a shelf corporation (unless you had the foresight to start one up a couple years ago) and giving it some time to build. Some internet searching for "corporate credit" might prove fruitful. Be cautious though, a lot of people will offer to build it for you for a VERY hefty fee.

I'd agree with you guys. Speak with her and explain that expecting a windfall out of this situation is absurd. Be frank, don't be diplomatic about it. Tell her what you can offer; banks will allow a certain amount of money for moving expenses (I think that's $2500 here in CA) and offer to pay for a credit repair program if the SS is successful. Don't give her anything up front though.

I'm seeing about 75-80% current value also. They're going off the BPO, so if you get a pessimistic broker, you can do well.

This is coming from a short sale company I'm networked with which is doing quite well right now. They're auctioning off the properties and getting 90-95% value pretty regularly, surprisingly enough. Getting a 10% margin on a property here in Los Angeles is totally worth the effort.

EDIT: I meant to add, in most places ~65% is pretty unrealistic. Though I think it would be doable in the places that are really struggling, esp. Stockton. I'm not sure you could find a buyer, even with such a discount.