All Forum Posts by: Justin Aguilar

@John Thedford

Actually, the reason he is, is because he is unemployed, but he did mention that he will be working for the military as a defense line consultant or something along those lines, so he should be able to pay that off, depending if he will have to pay rent or not (IE moving in with his parents for the time being)

Hello John,

     Thanks for the reply, Yeah I believe the numbers are too tight too, I want to see what cost I did miss that I didn't factor in. I am going to offer him around $285,000. So that will give us $40-$50k cushion, but like I said, getting a referral fee would not be a bad idea too, do to the fact it is low risk on our end.

    Honestly, I do not know why he is behind on payments.

Hello Fellow BiggerPockets members,

        My brother Jason and I found a lead from our bandit signs. The owner's situation is that he is divorcing and wants to get rid of the property. He has only lived in the home for about a year. The home is in a new developing city and the property itself is fairly new. The home looks as if it does not need any type of rehab or repairs. He has been working with an agent for about 3 months now and still has not landed a buyer. The owner said he is frustrated with his agent and is looking for another way out.

He owes $318,000 to his VA loan and WANTS to BREAK EVEN. I spoke to my broker and he said that he would most likely sell the home at $340,000. In the area, comps has been sold within 1 month after listing. I did the math, and its not a deal, but As I was speaking to the owner I picked up that he would be willing to go as low as $300,000. If sold at $340,000, That gives us $40,000 to play with. It still doesn't sound like a deal, or very little profit for us.

    What cost should I factor in?

      - Realtor's fee 3%

      - Closing cost (How much does closing cost look like? I am putting $2,000)

      - Behind Penalty Fee - I'm assuming around $2,000

      - Behind mortgage - ~$13,000

- Holding cost - $2,250/mo mortgage + HOA

        - 3/mo x $2,250 = $6,750

             With all of the above factors.. I got it to $6,050 as a ROI. Yes I know its tight, but the point of this is to see what cost did I miss that I should factor in and the cost that I did factor in, is it accurate (IE closing cost/buying cost)

       Since the numbers are real tight, my option would be to offer him a lower number. I believe to make the numbers work, offering him between $283,000-$290,000, that the deal can work. Would he take that number? hmm I do not know. But its worth a shot to negotiate. He is behind mortgage by 4 months, and looking into falling into pre-foreclosure and had a bad experience with an agent.

      If he does not like the deal, the next offer I have for him is a referral fee and send in my broker. Which I will make 20% of whatever he makes.

      Lastly, if I were to make this work as a quit deed, do I need to get approved by their current lender to claim the property under my name?

@Bob Okenwa

Thanks for the response! Thanks for the advice,  I will continue to look for an agent that will be looking to work a deal! 

One more question too.. with him giving him his end, basically he would have to use that money to full pay off his loan... correct?

@Bob Okenwa

Thank you for your response. There are NO homes being flipped in this neighborhood. Rentals are going for around $1900/mo. This is a newly developing city.  The homes that were recently sold in the same neighborhood were about $333,000. He is tired of dealing with his agent that has it listed for $349,000. Its been listed for almost 4 months. At this point he is highly motivated.

With that being said, my brother and I came up with a creative financing offer. I would like to know what you think. We believe we may have the option to short sale it, but we dont have the cash reserves for that, but we may have enough cash reserves to do a subject-to type of financing. The gentleman wants to break even with $318,000. He is behind about $10,000. So we want to mention that he will have to pay that $10,000. IF he does not have that $10,000, we plan on telling him we can negotiate a deal where we will deduct the $10,000 plus $1,500 from his number of $318,000. So his number will actually be looking at $306,500. With a couple of comps, we seen that the homes sold recently for $333,000. We want to sell it for about the same amount. Possibly, $336,000. So when everything is said is done we are looking at a cushion of working with $29,500. I know we will have to pay at least 3% for our agent. We think the house will sell pretty fast but worst case scenario, we would keep up with the mortgage payments of up to 4-6 months, so thats deducting roughly around $5,000. I know we have to pay the escrow company for the transaction i am assuming that will be $2,000-$3,000. Is there anything else that i am missing?

SO roughly, we will make $10,000-$13,000. That may not seem like alot, but my brother and I are highly motivated to close our first deal. Thank you!!!!

I got a phone call from a Bandit Sign and the Homeowner said He just went through a Divorce and wants to sell his house ASAP.

He owes #318,000, behind on mortgage $8000, and behind on HOA $2000. The house was built in 2007 with granite countertop, looks nice and probably does not need much renovations. The house looks like it can go for $350,000. He said he wants to break even, maybe possibly take a lower offer.

What ways can I help this guy?

Possibility of getting it under contract and finding a buy and holder to purchase the property?

All feedback would be greatly appreciated!

Thank you!

Thanks everyone for the warm welcome!

I will be exploring different ways of finding deals thank you!

Hello Biggerpocket members!

    This is actually my first post on BiggerPockets! I like to start off that my brother(Jason) and I are new to real estate investing. Grasping the lingo and such has been a pain!! Although it's been a pain, today has been a great day! Its a warm summer day with a hint of ocean breeze in good ol' California! I cannot complain!

My brother and I are having a couple of hiccups writing up offers to agents on properties that are listed. I know many agents are different. We are having a problem because we do not have POF bank statement. Any advice as how to write a powerful offer? I know the POF will make our offer more appealing, but as of right now we do not have the funds for the POF. I got a statement from my HML, but it wasn't an actual bank statement. Also, what else would you guys advise would make our offers stronger?

    Like I mentioned above, the lingo and documents can be somewhat confusing to a newbie. My agent also asked for my Articles of Corporation as well. Where can I get the articles of corporation? Thanks guys!