All Forum Posts by: Joseph Johnson

Thanks Josh....but Burien wouldnt work unless its on or near the water (is that the case?) This is for investment.

Know anyone who has a lot in Seattle? Or do you? Preferably in capitol hill area or north up to 85th. Will look at all options, Thanks!

Joe

Does anyone have a good marketing list or strategy they use to find off market vacant or raw land?

Its not like there is a non owner occupied land list....

Will be getting an outdated but clean Ravenna tudor, seller needs a long close ~ 3 months. But will be a good flip. Its a 3 bed 2 bath 2300 square feet tudor right in Ravenna

Purchase 350K, upgrades 100K (estimate at this point but should be on the high side, will have solid numbers soon) ARV 550-600K.

Let me know if your interested.

Thanks

Joe

My wife's family is in the final process of subdividing a parcel in Corte Madera Marin County. Once done it will be three buildable properties, and they will sell them to me for a significant discount if I take all three.

I have spec built in the Seattle Area, but nothing long distance and have not dealt with the building and planning department in that area. So I am looking for a project coordinator who could also bring some funds to the table to partner in doing some spec builds on the lots. Also in search of other investors for the project as well.

Overall project could be lucrative (well in my area it would be) as build able lots aren't that plenty. Numbers are purely speculative at this point, but all three lots would be around 1 million (333K each), build cost likely in the 200/square foot range (obviously an estimate), so maybe 500K to build, End value 1.2-1.3 million based off newer construction sales.

Thanks

Joe

Have a deal under contract where the buyer wants to use conventional lending to finance. I have 90 days on the contract (well little less than that now), so I have the time. Property is is good condition, so appraisal wont be an issue and it was never listed on the MLS, I have an email into escrow on if my assignment contract will cause problems. Anyone run into this before?

I recently helped a friend who was struggling to pay their mortgage find a buyer for their house. They didnt quite have enough equity to list on the MLS but wernt underwater either. My friend had an FHA loan on it and the buyer was able to assume the loan (since it was an FHA) and only had to pay a couple thousand over the loan balance to my friend.

It got me thinking this might be a good wholesaling opportunity as I imagine there a load of people who bought in 2008-2010 who now have maybe a little equity but not enough to list on MLS (at least in the PNW) Buyers would be happy because they could get a home with almost no money down and likely a very low interest rate and the seller would be happy because they could get out of their loan without having to pay anything.

Just a thought..

I know you can have a title company produce lists for you with a variety of options. But does anyone know if they can narrow down a transaction that used FHA financing? Or where I can get that information.

Thanks

Lulu..we went through the same thing with our first property.

I have two words for you: Property Manager!

I know they seem pricey at first, but they know the laws surrounding tenant rights and how to get the right tenants in place (and what to do when they turn out to be the wrong tenants). A good one will provide you an itemized statement every month and year end for your tax purposes. And the cost of your property manager is tax deductible!

At 80 miles away you are looking at a 3 hour round trip (thats in no traffic) if something goes wrong. And trust me....something will always go wrong!

You do not want to be a landlord for the first time at 80 miles away from the property. Maybe after a couple years, but not your first time at the rodeo.

Opportunity for someone to get into a house for little or no money down. This is not available to an investor but someone who wants to owner occupy. Good way to get into a house in a good neighborhood in the Seattle market. Would need to occupy house for one year and then could be changed to an investment property.

This property has an FHA assumable loan at 3.875%.

Here are the HUD guidelines for assuming an FHA loan:
http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551c4HSGH.pdf

Here is an article describing the benefits:
http://www.keepingcurrentmatters.com/2012/01/12/the-power-of-assumability/


About the home:

This home quite charming and located on a corner lot on a quiet section of 15th Ave NE. Very conveniently located near Northgate, local parks, Lake City Way and easy access to I-5. 3 bedroom 1 bath. The home has hardwoods in the upstairs with carpet in 3rd bedroom downstairs (has its own fireplace). The upstairs living room is filled with light and has a wood burning fireplace. Lots of storage throughout and tons of character. The yard is perfect for those summer barbecues and outdoor fun. Parking is off street in the driveway and garage. 1550 total square feet.

Loan fundamentals:

Current total loan payment is $2060, which includes mortgage insurance at $152 which can be eliminated after three years.
Current loan balance is: $335,000 and has 28 years left on the note.

Current price without option:

375,000 means you can assume the loan at 3.875% and have to come up with the difference between purchase price and loan balance, you can obtain a home equity loan at close to 100% value and have to pay very little of your own money. Rates for 30 year fixed can be had from 4.99 to 7.5%


Benefits to consider:

-You get a guaranteed interest rate 3.875 (you will have to be able to qualify for an FHA loan when wanting to assume the loan). Rate is about .5 points lower than current going rates, which is equal to about 100 dollars per month (equal to about 20,000 dollars of purchase price)

- You do NOT have to pay an upfront mortgage premium, which would be around $6700.00 if doing an fha loan

- Only have to pay a 500.00 dollar loan transfer fee, NO origination charge required saving you around 4000.00

- So close to 10,000 dollars in loan charges saved!

- Also current FHA mortgage insurance rates for a 375,000 dollar house would run close to $430.00 per month AND is not allowed to be cancelled for the life of the loan (ouch!). This loan has mortgage insurance of 150.00 per month and can be cancelled in a little over 3 years! Saving you close to 300 dollars per month right away and even more when you think about cancelling it.

The home is currently occupied with tenants, and their lease is up at the end of February. Address is:
10303 15th ave nw, 98125. DO NOT DISTURB the tenants. Showings will be available starting in January.

I am sure you will have questions and I am happy to discuss them with you. Call or Text Joe at: three-6-Zero-Six-4-three-3-4-4-three