All Forum Posts by: Greg Carr

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/reobuyfaq

That website should help you.

1. Commercial propery is a totally different ball game from residential. Commercial is largely off-market property and each individual organization/seller may have their own disclosure agreements preventing wholesaling of their property.

2. Yes you can wholesale property under a listing agreement, though you may want to communicate that you are not the end buyer and make sure your contract is assignable.

The AREA has a meetup in Arlington every Saturday, there are plenty of investors there.

This is old, but I would like to comment for future readers.

Many (if not most) hedge funds will not be found in the EDGAR system. Most hedge funds are unregulated, which means the majority of their investors are accredited (they have over $1 million or make at least $200k/yr). Which means they did not file a Form D.

This is generally what makes them different from a mutual fund - they are unregulated.

You should ask a real estate attorney to review the contract and if you can sue for specific performance. Weigh the costs of doing so versus just returning the materials (or selling them to surplus stores or something) and make a decision from there.

"She told me she couldn't as she didn't have their phone number."

That made me laugh out loud pretty hard. You should probably get a new real estate attorney. You didn't have them perform a title search before closing?

If you have the financial means to throw away a few grand, and maybe risk your earnings this year, then go ahead and just do it. The only way to know is to find out (and, of course, post your results and opinions on this website for all of us to learn from your experience). It sounds like this will not significantly impact you personally, since you are already successful at what you are doing.

This is sort of like an investment in yourself. It could succeed, it could fail. But the only way to know is to take a little risk and do it.

I say: do it, and find out if it works for you. If it doesn't, then just inactivate your license. No big deal. If it does, though, then congratulations! Success feels good.

I think he means 5 buildings, but 11 units.

4 duplexes = 8 units. 1 triplex = 3 units. How does that make 10 units? Did you mean 11?

The deal is pretty tight. I agree with Flavio.

Maybe try running your numbers again, showing the seller your situation and negotiating for a lower price. That roof is going to put you in the negatives, and if it starts leaking you could be looking at interior damage to deal with as well.

Realize that there are several fees associated with being an agent.

Once your license is active, there are certain disclosures you have to deal with that you did not have to before. When talking with buyers/sellers, you now have to tell them you're an agent and provide a separate disclosure sheet explaining that you are not representing them, etc. Plus in any direct mail ads or online ads, you also have certain disclosures to adhere to.

If your end goal is to be a broker, however, then there is no other route to take.

He is required to give you his orders. He needs to be deploying for 90+ days.

@Bryan N. Has a solid point. I have seen the same, as well.

This PDF document should answer all of your questions: http://www.dix.army.mil/LegalOffice/files/LEASETER...

Q: HOW CAN I TERMINATE A REAL PROPERTY LEASE? 

A: To terminate a real property lease under Section 535 of the SCRA, a specific procedure must be followed. The service member must deliver a written notice of termination to the landlord, along with a copy of military orders. This notice may be delivered by hand, private business carrier, or mailed, return receipt requested, to the address designated by the landlord. Once proper notification has been provided to the landlord, the effective date of termination for a property lease that requires monthly payments of rent is 30 days after the first date on which the next rental payment is due. For example, assuming Sgt. Jane, who pays rent on the first of each month, provides proper notice of termination to her landlord under the SCRA on the 5th of December, then the effective date of termination is the 1st of February. The effective date for leases not requiring monthly payments of rent is the last day of the month following the month in which the notice is delivered. For example, assuming Sgt. Jane provides proper notice of termination to her landlord under the SCRA on the 5th of December, then the effective date of termination is the 31st of January.

Q: WHAT HAPPENS TO ANY LEASE AMOUNTS I PAID IN ADVANCE? A: With regards to both real property and motor vehicle lease terminations, any rents or lease amounts that had been paid in advance for a period that subsequently falls after the effective date of the termination of the lease are to be refunded within 30 days of the effective date of the lease termination.

Q: CAN MY LANDLORD OR THE COMPANY THAT LEASED THE MOTOR VEHICLE CHALLENGE MY TERMINATION NOTICE? A: Yes. The SCRA provides protection for service members to terminate their leases in the absence of a military termination clause. However, the SCRA does afford the landlord or company leasing the vehicle an opportunity to challenge the service member

Looks a little overpriced to me. Cap rate is pretty low, I generally consider 10% to be the minimum on any real estate.

"A new owner could raise total rents by $150/mo." Did you mean per unit, or the actual total? IE 4300/mo > 4450? If you meant the actual total, that's pretty negligible.

Any rehab/repairs needed? How much?

If you're serious about this, maybe consider getting a commercial appraiser to give you a far more detailed report.

What do the comps look like? Are there any similar comps in the area? If so, what are their rental rates, amenities, occupancy, etc.?

Submitting an offer at $370,000 or less may be worth it, making your cap rate 10+%.