All Forum Posts by: Jay Feldman

I agree with Jon. Also something smells very funny on this deal. My guess is there is information missing somewhere or being held back. If at all possible take you money and run! If that is not an option see a good real estate attorney before you spend another penny or day on this deal. Good Luck

I cannot imagine BoA doing anything quickly or being anything other than a total PIA to work with. Yes there have been people who have had good experiences with BoA (myself included) but the seems to be a rare occasion. Personally I think BoA needs to be taken apart and sold off as smaller companies. The (and a number of other banks) are to big to succeed.

Jon
I normally would not disagree with you but it is my opinion that in most cases you make your money when you buy. (anything) but as I think someone else pointed out you do not realize it until you sell it.

Regarding the 83% LTV I think people are missing the most important point in purchasing SS's. The value us is usually determined by the BPO agent and you need to make sure you are present for the BPO and make sure you point out every last issue there is with the property including things like if there have been crimes committed in the neighborhood, etc. Never lie but it is your job to justify your offer. That my 2 cents
Good Luck

Don't get me wrong I probably do way... more then I need to help out my tenants but. If the tenant is already high maintenance why not just tell her if she thinks it is high SHE should call the gas or utility company. Let her do the leg work. If they need you approval to release paperwork because you are the owner my guess is they can call you and get that. Otherwise it sounds like she is training you to do what she wants. Also yes 73 degrees very warm. Even owners up here in the northeast probably do not keep there house that warm. Housing code in at least one town I have rentals is (for leases that include heat) "thermostat must be set to a minimum of 65 degrees". I have some units I supply heat and I set the thermostat to 68 degrees. Good luck.

No idea on the direct deposit and I do not have any tenants that are military. Others here I am sure can tell us if this is correct but I would jump at getting a military family in one of my rentals. I would make sure that the person who is in the military is at least one of the people signing the lease. I have been told if you have any problem with rent you can call there commanding officer and it will get resolved. You also should know if they are transfered and have to move they can break the lease and there is nothing you can do about it. Personally I do not have a problem with that. That's my 2 cents. Good luck.

Travis
I feel your pain but if you plan to place offers on many REO's, get used to it. Sorry I mean no disrespect but at least up here in the northeast that pretty much seems to becoming the norm. It seems like more and more banks won't even respond for a few days hoping to get multiple offers and some it does not matter what the offer/s are they ask the broker go go back and request best and final. Every once in a while I offer full or over price and the agent puts the offer in at the same time it is listed (or with in the first hour or so) I have had my offer accepted. Having a good relationship with the listing agent can help. My experience is the broker will have REO properties assigned to them before they can be listed. If you have a good relationship they will let you know it is coming to market and you can go take a look before it is listed. That way the agent can be ready to place your offer right away. I many cases the agent just emails a form to the bank with the offer price and conditions. The agent does not even need your signature. If it is accepted then you will need the contract. Again this is where relationships can make the difference. As already mentioned CASH is KING even if it is not yours (hard money etc) no contingencies is very big as well. (at least that is what I have found) Good luck and hope you get your offer accepted. You probably already know this but it is a business and making a profit on something you pay to much for is very, very difficult at best. If the numbers don't work on to the next one.

Gabriel
50% I think becomes more accurate on 10, 20, or 30 units then 1 or 2. With 1 or two properties if you have any major unexpected expenses it can blow a giant hole in the budget. With more properties you have more units to spread it over. Also if he has been doing the repairs/management himself how much has has been getting done and how good a job is he doing? Good luck though I agree with Charles, don't over pay.

Ben
The numbers look good assuming they can stay at projections. How old is the duplex? the roof, floors, boiler, windows, etc. I am sure it is very different in Ohio but if they were mine hear in CT I would have more then $1,200 in maintenance. Just the cost of turning over the units (since you have a vacancy of rate of $2700 you have assumed you will be turning over more then once) cleaning, painting etc, I would think would put a major dent inn the budget. At $1,100 for property management does that include commissions for finding new tenants? Do you need to plow them out during the winter? If you are relying a lot on the PM, have they been around a long time and did they give you numbers (verifiable) on other similar units they manage? Not looking to blow any holes in your numbers just evaluating weather I want to try long distance rentals myself. I have a number of rentals (all with in 30 min drive) that I manage myself (with the help of my rehab contractors) but I am always looking for other investment ideas. Thanks again and good luck.

Ben
Hope all goes well and this is the first of many more. I am curious why go out of state on you first rental? Would you mind sharing the numbers? I am always interested in what other feel is a good deal.
Once a gain good luck!

Would a line of credit (commercial) for a "free and clear" property have less underwriting then a conventional commercial mortgage being used to refi a property with an existing mortgage? If so will a bank consider the property "free and clear" once the existing mortgage is released? (there would be full disclosure to avoid any fraud)