All Forum Posts by: Jared McCool

@JT Spangler I appreciate the feedback. The more critical the better. I will say that my original point of the post was to decipher my brokers loan paperwork. After all this was the first time I have ever seen this document. I did not add all the details purposefully so the attention wasn't drawn away from that, and I didn't have the property under contract yet.. Man did that back fire. O well, lesson learned there. Adding the info later on didn't help either. 

The learning will never stop. However the defined rules and strategies don't always fit like a cookie cutter. I use them as a base, and hope to find a deal that fits, but also try to find new "deals" that don't fit into the cookie cutter win all scenario. I am trying to be creative and make my own deals. 

I have learned a lot from this post, and that's the most important thing. Hopefully I can be successful with my strategy and help others define new ways and strategies that make sense as well. 

All in all, it is the harsh feedback that is most impactful and memorable. So once again thanks for the input, and I encourage everyone to follow and learn from hopefully a good strategy or an expensive disaster they won't have to pay to learn as well.

Thank you all for you input. My offer is submitted. I will keep in all updated with the results. Crossing my fingers, if my offer is accepted I will start a new post documenting start to finish my 203k process, successes, and failures.

@Stone Teran are any of these MLS fixer uppers forclosures? In your experience what kind of offers are these properties entertaining? What was the property listed for, and what offers are they accepting? Average percentage of market value?

hey @Steven Gesis thanks for the input. This is actually a triplex with a finished inlaw apartment attached to the first unit with two separate entrances, but is not considered a legal 4 unit. So total rent would be 1200+1100+1000 for the 3 units, and I would occupy the the in law apartment, living for free. After I move out I could most likely receive 1400 for the first floor with the in law apartment instead of the 1200. Based on your input and my added details, this deal doesn't look to bad? My goal was to understand the loan paperwork, but since everyone is putting input on the deal analysis I guess I should add those details as well. I didn't think the bank would entertain and offer of 240000 X 70% minus 50k of repairs for an offer price of 118k, so I was thinking and offer price of 170k which is 70% of market to be realilistic. I would live for free, cash flow, and have a little equity to help bring down the LTV to closer to 80% so I can refi out quicker. Does this make sense still or should I try to offer a lower price or move to a different deal.

All

If someone could explain, the prepaid reserves, why the difference in loan amount and purchase price, how to read those numbers.

market rents are 1200 for 3br and 1100 for 2br. i would like to buy whole sale but with the finance route lower offers dont seem to be entertained. "Turn key" in my market are overpriced and comes with deffered maintaince. 

CT REOs are averaging 85% of value in todays market, based on my research and BP fourms.

@Simon Shih all of your questions are answered in the original post....

hi @Julie Kern, if you wouldnt mind sharing, what was the asking price?

Hey all, 

Looking for some help. This is my first property, and i am having a hard time understanding the numbers.  

Reo for 218k

I want to offer 170k, this is a 203k with estimated 50k in repairs. i am asking seller (bank) to cover closing cost. Arv is 240k. After repairs i would like 10k in equity, that is why i am offering 70% of value.  I know this property will cash flow, but dont want to pay more then the value of the market value.  i will be holding and renting this property.  Can some one please explain the breakdown below? Also, i am not sure if this is legal or ethical to post, it does not contain personal information, but if this shouldnt be posted please advise so i can delete.