All Forum Posts by: Jonathan Barr

Have you thought of just doing a massive mail campaign.   I used to do about 10,000 letters a month LA with some pretty good success.   I mean Birmingham is a lot smaller so you can do way less.  There is a large expense but usually with one deal it'll more then pay for any of that marketing expense.   One pro tip is handwrite the name addresses on envelope or use script that looks as close handwritten as possible. Maybe can have someone on the ground that can meet with sellers on your behalf as well.   Then you can say you have a local presence. That's my two cents.

maybe a 10% return on investment.   If you PM I can send the calculator I have used.

I don't think you have enough spread there.

Closing cost with commissions will be about 8%.

Then if you take into consideration the cost of hard money it'll become really tight. You will mostly pay 2pts on full loan amount for construction money too and then interest while holding the asset.   Doing all the math right now you probably almost break even.   If you sell for less or construction goes higher you can quickly be in territory to lose money.  You probably need buy for 250 or less.   Those are my thoughts but I don't know that market or more particulars about your deal.

Honestly if its your first investment I would stay away from foreclosures.   There is usually surprises that you don't account for with these kind of deals.   I would get your training wheels on something you have plenty time to inspect, get bids and really sharpen your pencil.

agreed with everyone above.

I would make sure to really vet the syndicator.   It could look like sweet deal on paper but a bad operator especially in these times can really bring it down.

If can dig into there model or numbers some I would. A lot times going the syndication route you will get better returns then trying do small deals on your own. Due to economies scale, better lending and pricing for everything when are in those bigger deals.

I'm moving ahead cautiously.   Being much conservatives with all numbers. I'm in the multi-family space so there a lot levers (i.e higher vacancy) to be conservative with.  Also getting into projects that need less work so large capex projects aren't necessary.   There will be pain from all this that we have not felt.   The shoe will eventually drop.   Its not question of if, its a question of when and how bad.   So if you underwrite to weather a storm and it still works move forward.

where in LA is this?   Depending on what part a may have a couple people?

just what kind loan is bank? Agency?   Depending that they have different approval requirements.   For agency is very strict on experience so if this is one of your first deals they may not approve you.   I would look into what approval requirements are, liquidity/networth requirements. Hope that helps!

I would say a lot of times you will find syndicators commenting on these type of posts in the forums.   I would just look into the members you see that are active here.

She needs to contact a probate attorney

My guess is most likely this will need to go through the probate process.   Which will be lengthy and open you up to competition to others in bidding process.