All Forum Posts by: Graham Mink

Hi James Smith Sorry to hear about the tough situation you are in, on top of losing a Father. If I was in your situation I would try to find someone, perhaps an investor, to buy both properties in as is condition. I can't recall if you mentioned where the houses are but maybe there is someone on BP who is familiar with your market and be able to tell you what they are worth. If you sell to an investor you could line everything up so the deal closed as soon as the houses were out of probate. Say you got $100k for both houses after expenses. You pay off the estates $32k worth of debt and split the leftover $68k with your Sister. You would both have enough money and time to find another place to live. Your sister would be upset about moving but she also would have $34k to take with her. Now that your father isn't around to take care of her she will need to go out on her own sooner or later. Now would be the easiest time to handle it for you , since you haven't started supporting her yet. Selling the houses takes care of the debt and the potential problems with your sister. That's what I would do. Good luck and let us know how it works out. Graham

Thanks for the tip! I'll try that in the near future.

Congratulations Tara Piantanida-Kelly ! Wouldn't it be great if Joshua Dorkin or @Brandon Turner made it possible to link to a summary of the deals we put into our BP Analyzers? Then we could ask "is this a good deal?" Or "look what I just bought!" And provide the link for everyone to read and respond to...

One other method that I have used is to call several of the local Property Management companies, explain to them you are potentially buying a property in the area, and ask them what they get in the properties they manage. This is similar to calling the For Rent numbers but a little more expansive. I have gotten great insight into the local market and much more than just rental rates.

Hello!

I have found a 5 unit property where the Seller is willing to carry a 25% 2nd mortgage. (70k purchase price, $2300/month gross income, $1300/month expenses) Initially I thought I could have the Seller 2nd cover my down payment but my research here on BP has taught me that any bank will want at least 10% from my pocket plus closing costs, if I can even get that. Is this correct? Can I have the Seller also credit me at closing some of my closing costs? Since I would be getting $3600 in deposits and $2300 in rent (if I close in the first week of the month) these credits at closing will almost cover the $7k for my down payment share. Will that be allowed by a bank?

Another possible scenario:

The 5 units are in 3 different buildings on three individual lots that are adjacent to each other. Would it be possible to create two purchase and sale agreements, one for $1000 for one building that I can buy with cash and one for the other two buildings that I will get a loan for? (I feel that two of the three units would appraise high enough to cover the purchase price) My thought was that I could then after closing get a loan on the building I own free and clear to get my down payment back and possibly more. Is this approach legal/possible? If legal would there be any reason I wouldn't want to go this route? Has anyone done this type of deal before?

Any insight is greatly appreciated! Thank you very much!

Thank you to everyone who answered!

Happy Holidays!

I am wondering what your "trigger point" is? By this I mean when you are analyzing a deal what makes you decide to pull the trigger and move forward?

For buy & hold investors if you use CoCR what % gets you to take action and look at things deeper? If you use $/unit per month when does that light bulb in your head turn on? $100/unit/month... $200....$500?

For those of you in the flipping business how much profit do you need to see before you decide to go for it? I know J Scott mentioned he wants $20k per flip, is that about what the rest of you usually aim for?

I realize that many different metrics are at play and no one number will prompt you to action but what are your minimum standards before pursuing the purchase of your next deal? I am asking because I analyze a lot of deals, some look good, and some look not so good, but most are profitable on some level. I have a limited supply of capital so I want to be selective, but I also don't want to always swing for the fences and try to hit a grand slam with every deal. Will you share your minimum deal selection criteria?

Thank you!

Graham

I will look into the SAFE Act, it doesn't sound good, but I don't drink so it can't be THAT bad...

I will take the first Ad down. Do you think it makes me look too desperate? I am, and I thought being honest might attract some people, and I did get one response, but it didn't pan out. Can I edit out anything to make it better, or should I scrap it altogether?

As an aside, I bought a commercial property in August 2012 that is owner financed. I bought it for $110k and he lent me $82k and I still owe $77k on it. The owner passed away 6 months ago and now I pay his estate directly. Does the SAFE Act say I can't pay that note anymore?

I also have a loan from the town the building is located in to rehabilitate the property, to the tune of $125k. Is this loan "illegal" as well? I will do more research but I thought I should ask the person who probably knows more about it than anyone on here.

Thanks Bill

@Bill Gulley

@John Moore

Thank you both for the responses. For some reason I wasn't emailed when you responded so I assumed no one replied to my post. Very thoughtful and helpful information, I apologize for not replying sooner.

I am a real estate agent so I can list them myself and save some money there. I have been trying to sell the land with owner financing for the past year with no quality interest. I also have had build packages listed and have gotten 0 interest in 5+ years. I own 5 lots still and have $100k in debt on them. My holding costs are $7k annually. I'm really in a pickle here.

Bill, your idea about lowering the lot price to $25k and then contracting the house is a great one. I am going to try that immediately. At this price point ($30k) every other phone call I get is from someone who wants to put a mobile home on the property. There are covenants that run with the land that prohibit this. Lowering the price more might increase the number of calls I get regarding mobile homes. Curious to hear your thoughts on that.

My thought on building a spec house then renting it if I couldn't sell it was to cover the $7k holding costs that I currently have. If the property was almost breaking even I could stomach holding onto the land for as long as it takes.

I have the following ads on CL one for the land and one for a build/partnership:

http://burlington.craigslist.org/reo/4195095482.html

http://burlington.craigslist.org/reo/4161982887.html

Any advice?

Thanks@Elizabeth Colegrove

I will make some changes. I wrote the ad right after getting my 1 days notice, so I was a little irritated and it came out in my writing. It's a business, and I try not to get emotional, but sometimes it is hard to do.

This situation is a strange one. These tenants moved in July and I haven't had any issues at all. Out of the blue yesterday they told me they were pregnant and moving out. I have an enforceable lease that runs until 6/30 and I told them that they are responsible for the rent until I find a new tenant. They said they would pay "for a while" but I doubt that I will see a rent check for January. I have spoke with my attorney, who reviewed my lease, and he said that I have a pretty straightforward case and it shouldn't be hard to recover my losses, should I have any.

I really appreciate the criticism. I know the pictures stink but for now they are all that I can get.