All Forum Posts by: Jeanette Czachur

Son is relocating to Madison area.  Looking for 3 bed 2 bath in good school area and large lot/small acreage.  Up to $250.   Crazy market everything selling  fast with multiple offers. Anyone got something to sell? 

Yes go for it.  Just treat like a business transaction and property record the mortgage/note.  Cost a little extra but that ensures your friend is protected if something goes wrong.  We've also have some elderly benefactors who are quite happy to lend money at 3-4% since they can't get anything for it at the bank.  We did one deal buying a condo 100% financed with 5 year balloon interest only annually.  There terms not ours.  After 5 years sold, paid them in full and had nice profit and everyone was happy.  Now looking for next deal.....but prices out of control in Florida near 05-07 bubble and wonder when it will come tumbling down again.  

Thanks.  Yes, that our hestitancy as well.  Boatload of work and risk for small amount of money but got to start somewhere.  

Thank you.  That's our conclusion as well and what we told him.  Friendship not worth burning over money. 

Venice/englewood on gulf coast but this property not direct water access.  270k is on lower end here in A neighborhood.  Two comp all remodel nearly identical sold for 268k and 270k in last 6 months.  We are using 255k to be conservative. 

yip...our exact thoughts. We'd done a deal with another friend...older and wiser and it was fine.  Straight interest deal.  Do you think we were being fair or unreasonable?

Thanks. Good to know are numbers are not out of line. We think the same but trying to allow plenty of room for error or surprises. Lender is Wachovia. property still titled in seller's name but recorded foreclosure judgement. Wouldnt contract be with seller not bank at this point? If bank doubt they would consider. Finding these lenders are putting distressed houses up at near ARV due to seller market and either some dummy buys or it sits for months and they sell for what it should have in the first place. Can't fix stupid! No chance seller will buy back at all got -0- funds.

Long time friend  (40+ yrs) approached us and offered to finance RE ventures 100% up to $300k. Reluctant to do business with friends but he persists.  So I tell hubby to pin down the terms...first friend says keep track of hours and will pay him based on agreed upon rate per hour.  We say not interested and recommend profit split, interest or combo.  Friend doesn't commit but tells us to find property.  So we do spending time looking for deals, analyzing etc.   Find one with approx $200-210k all in investment after rehab etc. We propose what we thought was fair split 50/50 his funds and our work or alternatively 10% interest.  Investor friend comes back with will put in $150k expect us to front the rest and still split 50/50.  Not interested in 10% says he can get in stock market.  Okay, then do it we tell him.  Know that HDL would be much worse terms but thought we were being fair for private deal.  Hubby says friend doesnt place any value on his time , understand the amount of time it takes to do flips and not  realistic about expected profits  apparently fooled by HGTV shows so told friend thanks but no thanks. Were we unreasonable?  Think investing with this friend has disaster all over it with lots of second guessing and thinking we are making a windfall in the deal. Thoughts? 

Looking for neutral perspective on this possible deal.  Property in A neighborhood in SW Florida with foreclosure judgement of $125k.  Set to go to auction 7/18 but from what I understand it can be sold so,long as judgement satisfied by 7/18.  Will need title search but preliminary does not show any other clouds on title.  

ARV is between $265-279k based on recent comps right on same street completely rehab with same sq footage (1700). For calculating purposes we are using $255k. House needs work-kitchen/bath updates, paint in and out, flooring, possible new a/c compressor, possible new duct work, pool & screen redo, new garage door, duct worker (1974-smoker) plus misc rehab (lights switches, etc) . Using estimate $56.3 for rehab. Closing, selling and holding costs using approx. $26k. Rehab cal show max purchase $149 assuming desired profit of $20k

First, is this too much investment/risk for newer RE investor? Done two prior rehabs over past 10-15 yrs and made a profit on both.  

Second, not 100% sure if I can buy direct from seller with the judgement?  Is there something I'm missing? 

Third, how numbers look right?  Conservative enough?