All Forum Posts by: M A.

Me and my partner have decided not to pursue this opportunity. We are not interested in doing anything else besides short sales

If someone is interested in helping this lady feel free to contact me.

Seller is located in Midlothian , Tx

A seller contacted me yesterday with the following problem:

She owns a property that is worth 170K
Her remaining mortgage balance is 100K
She is 5 months behind in payments.

She wants to sell, but doesn't want to lose all her equity.

I normally only do short sales, I dont really know how to proceed with this one. How can I help the seller and still make a profit. Advise needed!

Thanks in advance!

good day everyone!

I have a seller who wants to do a short sale.

catch is the seller is currently under chapter 13.

Is it still possible for me to purchase the sellers property though a short sale?

regards,

Musa

Hi all

quick question..

How do you know the value of a multi family if local cap rates are out of date or unavailable due to lack of comparable sales?

Thanks in advance for replying!

Welcome to the forum!

Thanks for the reply!

There are no other liens. The property owner owns the property free and clear (besides the tax lien). I'm not really worried about the lien. The seller already accepted my lowball offer (which takes into account the lien payoff).

Im worried about the title issue. Beside the homeowner, her 11 year old son also has title to the property (through a probate situation I assume). Should I tell the homeowner to call me back when she "solved" the title issue?

like I mentioned Rights of redemption are up at 3/18/2010, so theres not much time left

what would be the best way to approach this?

I'm a wholesaler in Boston and I came across a deal with a possible title issue.

Homeowner has a property with a 40K tax lien on it. Title is shared with her 11 year old son (through probate?). Tax lien about to be foreclosed. Rights of redemption are up 3/18/2010.

How and how fast can the homeowner clear up the title? How should I proceed?

Thanks in advance

"You should get a tons of calls."

Yeah I dont think so... :wink:

I've talked to some other succesfull wholesalers in the state and they get about the same response. between 1-8 calls for every 100 bandit signs. Sometimes a little more. Certainly not "a ton of calls".

Last week I was at a local REIA and a guru claimed to get 150 calls from "extremely" motivated seller after putting up 50 signs in 3 days. I call that lying.

What number of calls do you tell your "students" is a realistic number mr Haskins?

I use that formula to estimate the fully stabilized value (remanaged and rehabbed) in under a minute

I'm making offers on properties 50 to 60 cents on the dollar ( 60% x fully stabilized value)

My strategy is all about making massive offers. When I get a reply from someone interested in my low ball offer I go into due diligence mode and research how utilities are being paid, necessary improvements etc etc)

If someone has a better idea to quickly grasp the potential of a multifamily please inform me :D

Musa

Thanks for the response Mr Scott

Very useful information!

I want to acquire multi-family's, rehab, re manage and raise the rents. By doing that I want to create forced appreciation.
When I buy the property it will probably not cash flow, as I'm living in Boston. I'm want to be in the business of repositioning apartment buildings in less then a year and then sell it.

So here my second question:

What would be a quick and dirty way to estimate the ARV in under a minute (assuming you're using the maximum rent the market will bear AFTER rehabbing the units)???

I want to be giving 20+ offers a week to a multitude of multi family's in the area. I'll research the tax returns, leases etc etc later as part of my due diligence, after I get the property under contract. I just need to use a quick and dirty formula for now in order to send out offers.

My current formula: Gross scheduled Income (assuming we rehabbed the units and raised the rents) x 0.5 (operating expenses 50%) = NOI / Local cap rate = ARV

I live in Boston where cap rates can be around 4-7%. Really hope that after I repositioned and rehabbed a multi-family I can sell it to an investor who doesn't believe in CASH FLOWING properties. But thats a topic by itself i guess :mrgreen:

Thanks in advance.