All Forum Posts by: Eric Gamble

Assignable PSA in Dundee, OR for a:

• SFR, 3366 sqft
  Under contract for $163.40/sqft
  Recent Sold Comps (w/i 4-months): $209/sqft
  Rehab Estimate: $20k (vast majority of deferred maintenance dealt cured)
  Due Diligence Window: Starts 6/20/2020 for 10-days (calendar days)
  Closing 20-days after Due Diligence

Contact via direct message

I am currently in an underwriting process for a business line of credit.  The business development manager (BDM) I am working with is the intermediary between me (the business I am a member and manager of) and the underwriter/underwriting team.

A few of the communications from my BDM have seemed a bit fuzzy (not clear).  So, I want to address most if not all potential issues as early as possible.  I explain the business structure and ownership models below:

Company A - Georgia based LLC doing business in GA, NC, and OR
  50.01% Owner/Member #1 (a Georgia Corporation [Company B], since 2008, IP sold in 2018 and corporate name change)
  24.95% Owner/Member #2 (me in NC)
  24.95% Owner/Member #3 (GP in OR)

  * All documentation pertaining to the LLC (Company A) has been submitted

  * 50.01% owner of LLC identified as principal for LOC processing
    - the person behind the GA corporation, credit score 800+, personal asset 3MM+

  * Have sent in the following information on Company B (the GA corporation):
    - Article of Incorporation
    - Bylaws
    - All State Filings since 2008
    - Is an S-Corp, the CEO is the owner
    - ??? Should it be clear that the CEO/owner of Company B controls Company A (the LLC), because he is the signatory for Company B ???

Post by the following BP contributors have given me a little insight:
@DonKonipol, @WilliamBaptist, and @RaphaelC

@Chip Chronister and @Kyle Grimm, did either of you ever get any insight on how to located/get daily NODs? (per the notice of default list post from 2015)

-Eric

No, I have not invested in Europe.  It is definitely one of my goals, and my wife would absolutely love it if I did.

Keep me in mind, for the future.

-EMG

@Lydia R., the use of private money is smart. However, what seems EVEN SMARTER is the listing of those potential wholesale deals on the MLS (casting a wider net for buyer - smart). And, the use of private money makes this strategy work.

Kudos!
-E

@Joe Threats, just came across your post.  Would you mind letting me (us) know how this double closing played out for you.  I might have an opportunity to get 4 properties under contract and wholesale them to other investors.

Many thanks,

Eric

I have heard about these types of deals, but never ran across one until now. I will give color to the deal below. However, my question for the forum is not about the deal, but about the BRRRR Calculator.

How Does The BRRRR Calculator Compute/Solve/Calculate the ARV in the FINANCIAL INFO Section of the Report?

About the property:

• Foreclosure: Bank Asking 86,900
• ARV: 105,000 (my calc giving the area and rental rates)
• Property Characteristics: SFH (ranch) 1970s, 2bed, 1bath, 1274 sqft, wood paneling throughout
• Rehab Budget: $48,000 (reconfig to: 3bed, 1.5bath [fiberglass insert], rewire, fixtures, outlets, kitchen [laminate counters])

The BRRRR Calculator is telling me the ARV is $50,250 (still would like to know how this calculated). So, I am thinking I should offer the bank a price that is 50% of the BRRRR ARV calculation (approximately $25,125), because 25,125 + 48,000 = $73,125. Using this number as a projected all in costs, it would put me at 69.64% of the $105,000 ARV.

Even at this number, with rents averaging $875/mo, I would only be at 1.19% of the all in price (monthly)

Your thoughts would be greatly appreciated!

@Javon Ned welcome to BP. Sounds like you are ready to kill it!

Keep learning and ALWAYS Put ACTION Behind Your WORDS:

What you say, I cannot hear.

What you do, speaks so loudly!

@Michele G., I just came across your post.  Would really appreciate knowing how this turned out.  I'm on the forums reading up on "How to determine a down to the studs rehab" and your post was one that came up.

Yours in success,
-Eric

Welcome to BP Veronia,

There is a lot of great information and people on this site.  Make certain you listen to the various Podcast and reading the various blogs, if you are not already doing so.

-Eric

@Veronica Jerome