All Forum Posts by: Jacob Morgner

Ben,

I'm enjoying the journey you are writing about. Keep in mind that Realtors work on commission. I truly wish you luck in finding a dependable realtor when dealing in that price range. Most agents are paid approximately 2.5% of the sales price. A 30k house means the agent earns $750... But wait, now it's time for the broker split. They probably get around 60% so take it down to $450 and don't forget to deduct E&O insurance as well as other expenses. At the end of the transaction the agent would make a few hundred bucks and he still has to pay Uncle Sam.

Just keep these things in mind as you speak with and interview agents. The time and energy required for a transaction to close is valuable to them.

Looking forward to hearing more on the progress of your journey.

Valerie,

If you are trying to acquire the property, Private money may be what you need. For this particular type of asset, you would most likely need at least 40 to 50% equity. Do you have all the financials? Is it still operating?

Best,

Jacob

Hi Janice,

You definitely need to steer clear of these guys. As a Commercial agent, I know this business is about building trust. When you work with a buyer you want to be able to trust that they are not working with other agents. It's easy to "spin your wheels" in this industry when you do not have an existing relationship with the buyer.

Try to find one that is looking out for your interests. Just make sure you know what it is you are looking for.

What type of properties and what areas are you searching in? Feel free to contact me if you would like to discuss.

I need the first to come way down in order for the deal to happen. I personally know the holder of the second. I need a solution for making this work. Is there anyway I can structure it so that the second is still fulfilled? Maybe offering an equity stake? Not sure if that would be legal.

Is it possible to structure a purchase on a property as follows:

Negotiate with the 1st to get the purchase price down to reality while simultaneously keeping the 2nd satisfied?
Can I keep the 2nd involved somehow? Maybe paying him off completely or structuring him back into the deal?

Thank You Jon and Nathan for your input.

If you had a report showing the actual expenses holding true at 4k per month for the past 2 years would it change your thoughts on cashflow/cash on cash ?

Hi Everyone!
Looking for opinions and discussion.

Here is the description:
22 Units composed of 8 - 2/1.5 and 14 - 2/1
100% occupied
Monthly Income = 11k
Monthly expenses = 4k
Net Monthly Income = 7k
Annual Net Income = $84,000

$925,000 price makes cost per unit $42,000
Located in Central Valley of California

As I said before, looking for other investor opinions and discussion on why you would or would not consider a deal like this.

Thanks!

:D

Mark,

This is a good place to start. Have you tried looking on linkedin as well? It can be helpful when finding a business professional.

@Trip
What's the latest on this deal?

The property currently has a tenant in place and I would like to get it under contract so I can wholesale it to a buy and hold investor. I will market it as a turn-key cashflowing property. This is a 2003 built home and I have not walked through the property yet to determine if repairs are needed.