All Forum Posts by: Joshua Nudell

In addition to a real estate agent, you also have the option of contacting attorneys who are familiar with the short sale process.

Regardless of which way you go, I would find someone who can give you solid references of short sales they have done previously.  You don't want to choose someone who doesn't have the experience because that can extend the short sale process more than is necessary.

Hi Lorenzo,

You need to provide a bit more detail in what you're looking into evaluating.  Are you looking for a buy & hold property or a rehab property?

Buy and hold people generally tend to use the 1% rule (although 2% would be better).  Ie; Total investment cost = $100K, then 1% = $1K per month rent MINIMUM to even consider the property.  More is better obviously.

Rehab properties would generally follow a different rule. You want to buy at 70% or below ARV (After renovation value) _AFTER_ the renovation costs. Ie; ARV is $200K, Repairs cost $50K, 70% of $200K = $140K - $50K, which means an offer of $90K or less for that house.

50% pertains to the buy & hold properties.  It's just a rough estimate of what you will spend on monthly operating costs from your rent collected. Ie; $1K per month rent = $500 per month towards taxes, insurance, management, capital expenditure, electricity, heat, sewer, water, lawn care, etc.  But does _NOT_ include cost of money (mortgages, etc).

Hope this helps a bit.  Keep browsing the site, I'm sure these %s are ALL over the place.

Have a good one!

Not at all, there are plenty of people on the site who provide criticisms of the activity/viewpoints of others.  They just provide a more useful viewpoint than "you ripped those people off".

I already explained my view of how the sellers were not "ripped off" by explaining that they would have had to spend that $15,000 regardless of which option they chose to go with because they had to live somewhere.

This site is about dialog and networking, and encouraging people to be the best real estate investors they can be by providing education and real-world advice from those that have been there and done it.  It's also about striving to be moral and ethical in your dealings with others, which is constantly reinforced by @Joshua Dorkin and @Brandon Turner  on their podcasts with their guests.  If you want to learn more, I highly recommend listening to the podcasts.

Hi Dom, thanks for registering to post your one negative comment.  I'm sure most would agree that your "contribution" is not needed here if this is your only post.

He did not rip anyone off. He provided the owners an alternative to the other offers that was attractive to them and obviously worth the $5000 concession they gave him.  The sellers would have had to pay that rent regardless of where they went, maybe more than the $15,000 they didnt have to pay for their house. This option allowed them to stay in their home and collect themselves and recoup from a bad situation.  They bought time with this deal, and that was the cost of it. While it's not technically "rent free", they didn't have to pay that money out of their pocket. Please take your time to get to know this site, and try to post constructive comments or at the very least express yourself in a more professional and comprehensive manner than leaving a two line condemnation for something you don't quite grasp.

@Account Closed  What Brie said is correct, despite that fact that you're looking at this from a cash flow perspective.  The comps are going to be based on other multi-families that were sold for anything 4 units and under.  Cap rate valuations of properties only come into play for 5 or more units, due to the fact that most banks consider those properties commercial loans instead of residential.

So, if Brie is accurate with regards to the one comp she found, it sounds like you're getting a really good deal because the ARV is actually $130K (being conservative compared to the one comp) instead of your $76K 12% cap rate value (which is flexible, because someone might be willing to take a 9% cap rate for the area, which changes the value by a bit).

At the least, you will have multiple strategies for this property (buy & hold for cash flow, or flip it for a quick return on your investment and move on to buy more buy & holds).

I would trust Brie's comments, because she has the experience and knowledge in the area.

Great find and good luck!

Hi BP MarketPlace,

I am currently looking for a quick short term loan for a project I'm working on.

I have purchased a two-family rental property all cash for $70,000 and I am now in the process of renovating it to get it rent ready.

I estimate that I will need about $30,000 for renovations.

I am willing to get either a secured loan against the property or an unsecured personal loan.  

The property will be worth at least $100,000 after renovations and I will be able to rent each unit for $750 once the units are ready.

The property won't appraise (for residential appraisals) because I have already started gutting it and it has no kitchen or bathroom.

On the personal unsecured loan side, I have steady employment (7+ years) and make over $100k per year.  My credit score is pretty good, but not perfect (720 according to Discover and another credit card that uses a different agency for pulling scores).

The only issue I have is that I need to get funded before January 4th.

Can anyone provide some ideas on how I could get a quick loan to cover costs of renovations?

Obviously this would be a pretty short term loan (no more than a few months).

Thanks for any help/suggestions you can provide!

-Joshua Nudell

@Brandon Turner  & @Joshua Dorkin I'm sure the answer is yes, but do you want us to rate each and every podcast you've put out (they're all great by the way!)?  I've rated my first podcast, and written a short review.  It might take some time, but I'll go through each one individually at some point.

I just usually end up downloading the podcast and listening on the train so I don't have to worry about losing reception.  Not to mention I ditched my iPhone 5S for the Samsung Galaxy Note 4 (battery life = sooooo much better, lasted TWO DAYS without charging) and I don't have iTunes on it (and I probably won't install it either).  So, it might take some time to get around to writing a review for EVERY podcast, but I'll make the effort.

@Ryan Billingsley That's an excellent question, and I believe that one of the podcast guests mentions that return-to-sender letters ARE a goldmine waiting for the right person to explore them.  I might suggest signing up for a person-finding service that only charges a monthly fee, with unlimited searches.  If you do a google search for "find people online" you'll definitely get some leads (and most seem to be the same companies that one could use to do background checks on tenants, contractors, etc).  I'm sure some even offer a limited free trial that you can use to see if you like their service and if it's useful.

Hope this information helps man!

-Josh

@Bill Gulley  You will just have to make up for it with one post that gets many votes because of it's usefulness and insightfulness.

Although, I think some "door prize" type thing for the millionth post would be kind of cool; A guest spot on the podcast, A free copy of the BP Ultimate Beginner's Guide, A personal phone call from @Joshua Dorkin and Brandon Turner, etc.  Something neat that would be cool to whoever posts that tantalizing millionth post.  And a mention on the main page of BP?

Hi all!

I'm almost positive that I'm not the only one watching, but it's exciting to see this awesome community reaching such an amazing milestone!  Great work @Joshua Dorkin!  You've built something remarkable and you should be proud of what you've accomplished!

Now, do we send a cake or flowers to the head office?  Maybe a virtual parade or something? ;-)