All Forum Posts by: Jordan Sizelove

@Aaron Montague You've given me some great feedback. I'll be paying off my CC's as soon as I can. Then I'll work on the car.

After further considering relayrides, I think I'm gonna hold off for now. Motorcycle isn't the most reliable and I work M-F. Need reliable transportation for those days. Will probably use it in the near future though. Thanks again!

@Troy Sheets Thank you for your response! Decided I'm gonna stick it out so my credit won't take a hit. Also don't have the cash right now to pay the difference.

Currently looking to start a business that will generate $5k+ monthly in cashflow. That would definitely help. I'm considering all of my options right now because I want this bad! Take a lunch to work pretty much everyday. Realized I was spending to much on lunch alone. Corny works! lol

Thanks for the responses guys,

Jordan Sizelove

@Kyle H. That makes perfect sense! Thank you for explaining.

@J Scott Thank you! So you recommend that I do a marketing campaign along with letting people know what I do? (The reason I was looking on the MLS is due to lack of capital.)

@J Scott You've made it very clear that my numbers are way off. lol That's why we have great people like you.

I'm learning more and more every day. Aren't holding costs a part of the fixed costs? So typically, holding costs and closing costs will be 1-2% of ARV? As far as commissions go, I'm a licensed agent (no access to MLS yet). Waiting to hang my license (should happen within the next month). Should I still factor in 5-6% in commission fees if I'm going to be listing on my own?

What does the typical origination and appraisal fee look like?

The rehab estimate was based off of the photos that I saw. Could be way off, which I probably am.

Considering that the house has been listed for 5+ months, if I factored in everything you've mentioned, in addition to lending fees, interest, and more accurate rehab costs, would the bank even consider an offer that's $100k+ less than listing price? Or is that not even possible?

It seems impossible to find any deals that would be worth my while. Sigh.

@Kyle H. I'm not exactly sure about the condition of the other properties (comps) before they were listed and sold. Am I supposed to be finding comps that needed a lot of work, were renovated, and then flipped? I wasn't under that impression.

For the sake of this thread, I've included links to the houses (hopefully that's okay).

Subject:

http://www.realtor.com/realestateandhomes-detail/1...

Comp 1: 

http://www.realtor.com/realestateandhomes-detail/4...

Comp 2:

http://www.realtor.com/realestateandhomes-detail/4...

Comp 3:

http://www.realtor.com/realestateandhomes-detail/1...

@Nathan Emmert Thank you for your feedback Nathan!

After looking at the 3 comps, I was gonna call the ARV of subject property $305k to be conservative and because I don't know how to make adjustments on comps. I came up with these numbers off of my head, but I figured fixed costs would be $20k, rehab would be $40k, and profit would be $15k.

I was thinking about submitting an offer of $200k since the house has been on the market for 5 months. You know what they say, "if your offer doesn't seem ridiculous, your offering too much!"

Any other thoughts or feedback? @J Scott @J. Martin 

Found a REO that's been listed for 150 days. Needs a lot of renovations. It's a 4b/2b, 1,497sf, built in 1973, has a 2 car garage. List price is $275k. Found 3 very similar comps. First one sold for $319k on Sep 5, 3b/2b, 1,550sf, built in 1977, has 2 car garage. Second comp sold for $325k on Aug 19, 3b/2b, 1,351sf, built in 1972, has 2 car garage. Third comp sold for $340k on Sep 15, 3b/2b, 1,550sf, built in 1978, has 2 car garage. All 3 comps are within 1 mile of subject property.

Not sure what to do next. I don't know how to make adjustments to the comps to determine ARV range/list price. Should I contact the agent and have them pull the comps (would rather learn how to do it so I can do it on my own)?

Possible next steps? Feedback and suggestions?

P.s. Happy Thanksgiving to all BP'ers!

 Thank you Aaron! It wouldn't make sense to pay off credit cards first since I won't have to worry about those anymore? And I could use the money that as going towards the cards for my car.

Was taking a look at relayrides. It seems pretty cool. Have you used it personally? Have to call and find out about liability. They say that they cover up to the value of the car. I'm assuming  means they don't cover what I owe. If anything were to happen, I'd be out of a car and have to pay the difference. Not sure about that.

 Interest rate is 2.99%. Hasn't been 6 months yet. Will consider refinancing when I get close to 12 payments.

Plan on paying off my credit cards when I get my tax returns. That should help some. Or should I use tax returns on car and then try to sell?

Gonna think outside the box and come up with some other ways to make money. Work has been slow so that isn't helping. Need to figure something out.

@Account Closed Thank you for the thorough explanation. I was aware of those things, but still made a bad decision, which I'm just gonna have to suck up.

I have not been late on any of my payments. Just figured if I was able to free up the money that was going into the car, I would be able to save some capital for my first rei.

Could try to sell the motorcycle, but it's worth less than $1000 I'm sure. It's a 2002 Shadow Sabre Vt1100. I was in a motorcycle accident last year (day before Thanksgiving). It still runs, but fender has some damage, along with a few other small damages.

Feel like I've weighed every option with no desirable end, but to keep it. Anyhow, it's a great car and I love it. It's just a huge expense. I've definitely learned a lesson!

 Thank you @J Scott ! The formula for calculating that manually is crazy hard. Wouldn't even know where to begin. That calculator is great though.

I sent you a message. If you can take a look at it when you get the chance I would greatly appreciate it.

 Hi Jon! I read your post and was curious. You stated that if I had a $100K a year salary and saved 20% each year and invested it at a 7% compound return, I would have $1.89 million after 30 years. Is there a formula for calculating this? If so, could you please share that with me? I would greatly appreciate it. Or if anyone else could chime in that would be great.