All Forum Posts by: Ernad D.

Hi BP community,

It would be cool to see what returns we, as investors, are currently seeing on our investments compared to different locations across the country. Please respond in the following format:

• Location (city, state)
• Number of units (2-4)
• Total purchase price (down payment plus loan)
• Rehab costs (if any)
• Net yearly income (all income minus all expenses)

Thanks!

Hi BP community,

It would be cool to see what returns we, as investors, are currently seeing on our investments compared to different locations across the country.  Please respond in the following format:

• Location (city, state)
• Number of units (2-4)
• Total purchase price (down payment plus loan)
• Rehab costs (if any)
• Net yearly income (all income minus all expenses)

Thanks!

I agree, summer is just too busy.  Let's plan on something this fall.  Hopefully we can get a few more interested folks. 

RE Investors and Professionals,

Are you interested in BP meetups with the purpose of connecting with like-minded people, exchanging information, and developing mutually beneficial relationships?

If so, please reply with your interests and ideas.

Thanks!

How does a assignment contract work?  Wholesaler is asking for:

Full name
Street address
City
State
Zip
Work phone
Mobile phone

Wholesaler says as soon as I get this info to them, they will reply with contract form.

@Jeff Copeland

I CORRECTED A COUPLE WORDS AS I HAD PASTED THE MESSAGE DIRECTLY FROM WHOLESALER

I am looking to rehab and hold as rental. The numbers the wholesaler provided are fairly accurate. I received more information from the wholesaler. The pending sale is their contract with the seller. $65k was the reduced asking price. What exactly does this mean? Do I receive the property for $41k or less (depending on number we negotiate to) or do I need to pay full $65k?

In addition, the wholesaler will send me the copy of the contract they are offering to assign to me but may need some additional info from me before it's completed. What does this mean? Do I need to get my realtor involved to help with closing? When should I complete an inspection?

Lastly, should I offer somewhere in the $35K range considering it was bought for a few grand less than that at an auction a month ago?

I look forward to your response.

Jeff,

I am looking to rehab and hold as rental.  The numbers the wholesaler provided are fairly accurate.  I received more information from the wholesaler.  The pending sale is my contract with the seller.  $65k was the reduced asking price.  What exactly does this mean?  Do I receive the property for $41k or less (depending on number we negotiate to) or do I need to pay full $65k?  

In addition, the wholesaler will send me the copy of the contract they are offering to assign to me but may need some additional info from you before it's completed.  What does this mean?  Do I need to get my realtor involved to help with closing?  When should I complete an inspection? 

Lastly, should I offer somewhere in the $35K range considering it was bought for a few grand less than that at an auction a month ago?

I look forward to your response.

Hi BP community,

A wholesaler is selling a property in a good area that I am interested in, but have never bought from a wholesaler before.  Here is the info from the wholesaler:

EST ARV $95,000
EST REPAIRS $9,000
EST MARKET RENT $1,250
EST RENT REPAIRS $3,000
PRICE $41,000

CASH OR HARD MONEY ONLY
BUYER PAYS ALL CLOSING COSTS
PROPERTY TO BE SOLD AS-IS
CLOSE DATE: JUL 2

PLEASE DO YOUR OWN DUE DILIGENCE BEFORE SIGNING CONTRACT

DETAILS
3 BR / 2.5 BA / LARGE ATTACHED GARAGE
RANCH STYLE
LIVING SF - 1421
LARGE LOT - 1/2 ACRE
BRICK

ROOF, HVAC AND FOUNDATION APPEAR TO BE IN GOOD CONDITION.

REPAIR ESTIMATES
KITCHEN FLOORING, UPDATE BATHROOMS, PAINT, MISC
TOTAL FULL ESTIMATE: $9,000

DO YOUR OWN DUE DILIGENCE BEFORE SIGNING CONTRACT

-------------------------------------

Records show that this property was bought at an auction for $32,117 last month. Also, this home currently shows sale pending at $64,500, however, I assume that deal fell through for some reason.  

What information do I need?  Is the July 2 close date set in stone?  Do I need to get my realtor involved?

I look forward to your feedback

Dear BP,

I have been getting creative looking for properties and reached out to an owner with a 24 unit complex that is not on the market. The reason I am interested is because the owner would "consider seller financing, depending on the terms".  The property is in a very good neighborhood and five minutes away from my home, so I could self-manage.  There is a property manager who gets free rent and takes care of the yard, but I would not need the property manager.  The building was built in 1968 and is low maintenance with all new appliances and remodeled units. Owner goes there once a month to do major jobs that need repairs.  I did some rent research and the $600/mo is very reasonable for these 2 bed town homes.  Only garbage, yard, and snow plowing are included - tenants pay for everything else.  Owner states the needs $900,000 for the mortgage balance to be transferred.

Data provided by the owner:

• income - currently 13005 a month (14400 at full capacity at $600/mo each)
• mortgage - 8096 a month including taxes and Insurance
• electric - 60 a month
• garbage - 140 a month
• income 4709 a month

This would be huge step from my current four family property, but I am interested.  What is the best way to analyze/ determine if this property is a great investment?  What challenges do I need to consider?   What next questions do I need to ask the owner?  

Bonus:  a picture of the complex (there are 3 buildings with 8 units each):

Dear BP,

My county has a court calendar and I am able to sort by a hearing list foreclosure docket.  Here is an example:

Now, I have a method to look up the address of the property in foreclosure by searching by the owner name.  If the property turns out to be a 2-4 unit property, I would like to possibly invest.  I know this can be a lot of work, but I can make time on the weekends.  

What does it mean once the owner gets to this point?  Is it too late to step in and ask them to sell to me because the bank has already taken the property?  Should I look ahead a certain amount of weeks on the court calendar and target those owners?  What is the best way to reach out to the owner who is dealing with the foreclosure?  Or, should I contact the bank and ask them to sell to me?

I look forward to your feedback.  Thank you!