All Forum Posts by: John DeVito

Of course I'll share. 

You're talking about the rt 9 corridors. Those areas are decent. Orange County is still the hit spot. Lots of city people are moving here. It's been that way for years. You can literally buy under 100. Most houses I do, the rehab costs are between 40 and 60. For some reason, there isn't much traffic between 275-350 but between 200 and 275 it's fast moving for finished homes.

What ever the percent concession is, let's say 3 percent. The seller agrees to give back 3% at the closing for a 3 % higher selling price. The house would have to appraise but in the end, the seller nets the same amount but you as the buyer would use that concession to bring less money to the closing. 

in my area, REO's usually have an agency that lists the house. They are a pain to get a hold of but you usually can get inside the house. If it's not on the MLS, it's probably not ready yet. Other than that, if your numbers are accurate, that's a workable deal in my opinion.

I don't see the numbers working for that deal. Just my opinion. 

If they have no note, than why not do a promissoryy note as deed of trust. That puts you in first position. As a contractor doing a flip, that is exactly what I would offer a private lender. I don't think I would do it any other way and certainly wouldn't expect a private lender to do otherwise

Being a contractor I can tell you this. When looking at a property make sure you leave room for the mechanicals. Most of the time these cant be trouble shooter until you own it. Also check where the septic is. No encroachments. Make sure no under ground oil tanks that are over looked. Most areas you need a permit to have taken up and added costs. Lastly, check your municipals. Things that aren't listed on the assessment are usually because they were never recorded. I've had plenty of instances where a shed or garage was done without a permit only to have to rip it down because the new buyer cant close until it's gone. Another added cost to demo and dispose. Just a few mistakes investors that don't know will make. Do your due diligence before closing. 

what I do is take the AVR of the house. Have your realtor do the comps. If I feel confident the house will sell for that, than I use 65% of that number. Example. If the house will sell for 230k you need to be in and out of that house for 149,500 including rehab. That gives room for soft and hard carrying costs leaving meat on the bone. That's the model I use. 

I don't see much meet on the bone. 

John Ritter!  Shoot me a message if you want to chat. My area is prime for that amount.