All Forum Posts by: Savannah Leigh

that's awesome. doing my first letter this week. I know, i know ...

nice letter on front, some deals on back.

suggestions?

My business focus now is on finding out of area buyers who want great ROI (15-25% cap rates). I first thought offering the deal was enough. My first few buyers very much didn't want help with PM, so I didn't think of it

any suggestions how to offer this without making it sound non-optional

their ask was 65. I assume that's based on an appraisal. Assesed value is in the 200's

I haven't done a title search. Normally it's done by the end buyer once I get a contract and find a buyer. That's where this bankrupcy thing goes off the rails.

Personally, I don't want this property. Don't really want one in Scranton because it's out of my core service area (not by much) and I don't personally hold a contractor's license, required for much work. I tend to do things myself or with my nonlicensed crews, and we tend to buy in areas that don't require licenses to pull permits.

I offered a grand EM, they came back and said 10% min, 20% is normal. And no contingencies. Basically, if court approves it we're done. So, to wholesale I need some new tricks here to avoid risking my grand.

I'm hoping to find a way to make it locked enough i can pass to a buyer now...even if I need to split the wholesale fee

Wholesaling it, I don't know how to account for/explain/justify the Bkruptcy court timeline. Heck, since I can't do a contingent offer (20% deposit, non refundable) I'm not even sure how to write the deal. That's my question.

Seller (bankruptcy lawyer) needs 20% down, MIGHT go 10

tells me it's no contingencies, pending only the approval of bankrupcy judge.

Might take up to 60+ days to get on judge's calendar.

Means we really need an end buyer in here FAST. and someone willing to wait.

How do i explain "hurry up and wait" to an end buyer?

Are there alternatives I can press the seller to accept?

Here's the deal:

I have a GREAT property under contract. Scranton, PA. One of the best neighborhoods. 3 blocks from University. 1 block from 2 Hospitals, nice condition, solid, long term tenants, OK prior maintenance. New windows, updated electric, water heaters, etc. Overall a great deal for 50.

2 one bedrooms (one floor each, both first floor, great for semi-handicapped/elderly) and one 3 bedroom. Possible 4th floor for additional unit or make 2nd floor unit HUGE. Would be awesome for college rental.

basement has 12' ceilings. 3 gas meters w mounts for a 4th. 3 electric meters. Only 1 gas device in the building besides water heaters.

assessed for 300. Easy sale at 100 to a live-in end buyer even as is. could rent the rooms for 400/each to college kids.

Heck, to start my relationship with this firm, I'd wholesale it for pennies. Maybe just a couple grand. I'm not greedy. Just confused.

most of the deals I'm signing are multis, under 40% ARV, Cap rate approaching/over 30%.

Now i just gotta get my buyers to step up, and step up finding more buyers.

Got a core few buyers but I've stripped their capacity.

Still, it's a thrill landing the deals. most have 60 day or longer timelines, so I'll get em sold!

I do it this way
total income
-30% maint/vacancy (also covers manager's first-month-rent fee)
-10% management
- all landlord hard costs
- 100/mo/unit profit (depends on number of units)
_________
balance tells me how much mortgage payment

this entered into mortgagecalculator.org at 6% 20 yrs.

this tells me property value.

- 5 or 10k wholesale fee
- some discount for end buyer equity

_______
max offer to seller

I have right now almost 20 units under contract this way

thanks

george...id check code. national irc is the law in many areas....and it says one on each level, plus one in each bedroom and one in the connecting hallway. plus a co detector somewhere

i have a recently renovated 2 unit. 2 years since total reno.

new tenant.every time she cooks the alarms go off.

first floor alarm is in living room, not kitchen

she says there's no smoke

could it be sensing something electrical like a surge from the stove

i am frankly confused.

I Do 30 Pct Gross Rent. Roofs Are expensive

it really is the same for me

income
minus all expenses including management/vacancy pad/piti
net
net over your cash in is c/c return
net over all money in ...purchase plus rehab plus whatever is overall c/c return or cap rate