All Forum Posts by: Hugo Alves

@Steve A. I completely agree with @Tolani Onigbanjo. There's different parts of Newark, some better than others, just like Philadelphia. I've lived here my entire life and I've had very little issues. Downtown (Penn Station) is being worked form all angles by developers, they just recently finished up teacher's village. I would encourage you coming over and walking the area. You would give you a different idea of Newark. Also keep in mind, right to the south, aka one block over, is Ironbound Newark, which is known for it's real estate in NJ.

@Craig DiSanto check out meetup.com or download the app. you can search by area for REIA groups. You can also see the itinerary and register to attend.

@Yavuz Bayram What's your criteria? Where do you prefer to purchase?

@Lue C. I usually go with 5% of the purchase price, that's been pretty accurate for me in my market (North Jersey)

@Argetim Ameti Statement made by @Harjeet Bhatti is a great option but delayed finance will only remove your invested cash into the deal without rehab costs. They will give you the cash you used to buy and closing costs but it may not exceed the amount you pulled out of pocket.

I'm assuming you don't want that option as you inquired about the current appraised value. There are a few banks out there that will let you cash out around the 6 month mark but haven't seen anything sooner. I'll keep an eye out and update if i find anything.

@Lauren H. Depends on your reason.....see below

7-Day Notice to Quit

For nonpayment of rent, the landlord must serve a 7-Day Notice to Quit advising the tenant that he or she has 7 days to pay the overdue rent or vacate, or legal action will begin. A tenant could stop the eviction by tendering the entire amount owed even after the 7-day period has passed. Weekends and legal holidays do not count towards the notice period.

7-Day Notice for Damage or Health Hazard

Michigan law also provides for a 7-Day Eviction Notice if the landlord alleges the tenant has created a substantial health hazard or has done serious damage to the property. Serious damage would be that well beyond what is considered “normal wear and tear.”

30-Day Notice

If the lease is month-to-month or there is a material breach of the lease, such as by having unauthorized persons living on the property or by creating a nuisance, then the Michigan eviction notice is a 30-Day Eviction Notice. The lease agreement must allow for termination for the specific breach alleged.

24-Hour Notice

Michigan law allows a landlord to give 24-Hour Notice if a formal police report is filed alleging that the tenant has unlawfully manufactured, delivered, possessed with intent to sell or possessed a controlled substance on the premises.

@Steven Dreyer Your amount set aside comes from your total rent roll, not what's left over after bills are paid. 

EX: $1,000 rent

10% cap ex: $100

5% vacancy: $50

5% repairs: $50

PITI: $300

Cash flow = $500

@Peter K. You can have both your attorneys discuss what compensation and/or reductions can be made to accommodate these repairs. At the same time, the willingness for the seller to reduce their price may have been because they knew of these issues. If this is the case and they won't reduce anymore, the ball is in your court. You can pull out of the contract due to home inspection results and get a return of your EM, or you can continue with purchase and correct the issues as time passes and cash flow begins to come in. I would obviously fix the major issues and/or the issues that may make the new tenant leave. Also keep in mind of repairs that can get the tenant hurt and then sue you.

@Aaron Sutter You can find examples online of wholesale contracts. These examples will be tailored to whomever created them and specific to their situation and/or state. You can either review multiple versions of these and create your own or CYA to CYA (Consult your attorney to Cover your ***...ets)

@Zachary Peacock I would take the reverse approach on wholesaling. I would recommend finding your buyers, vetting them for what they look for, what a deal is to them, then going to find the deals. This will at least give you a sense of direction on what to look for and knowing you will have a buyer makes you more comfortable making an offer. Just a thought