All Forum Posts by: Account Closed

Hi, I just found out last week that my neighbors house is going to auction tomorrow. He has not lived in the house for a few years and had rented it out to his son's friends and they just let us know the other day when we saw them moving their stuff. My father is interested in buying it and renting it out but before anything I know a few things. I know we have to have the cash at auction, but in regards to the title such as what is owed on the property and so forth, do I run my own title or is that told to the bidders already before the bidding starts. Any help would be appreciated. Thanks

Hi, I am from Essex county, NJ. I am wondering if any other wholesalers work with agents. My first deal was an REO that I worked with an agent for but it's obvious a lot of agents do not like to work with investors around this area, or any area as far as I am concerned. I do understand where they are coming from but I wanted to know if there are any wholesalers out there working with agents for REO's or MLS properties. I still market to motivated sellers but there is so much opportunity in listed properties that I can't let them slide. If you work with an agent, how did you get them to work with you? I am looking for an agent to make offers on my behalf and the incentive that I can provide for them is obviously they get the commission on the sale but that I also would bring them any leads that I would not be able to work with if they are looking to sell for retail prices.

Hi, my father and I are looking to buy rental properties soon so I know about the cap rate but any other tips anyone wants to share on buying rental properties would help. We are looking to buy multi-family (2-4 unit) properties. Your wisdom and experience are greatly appreciated. Thanks!!!

@Janette Olano Ok. And you can add the buyer to the contract at anytime during that 45 day period? So I put the bid, get it accepted, I send in the check of $500 or $1000 depending on the price of the house and then find my buyer. Once I do I contact the agent to add them to the contract and we sign the quit claim deed. Do you use an LLC or you just put it under your name. Thanks again

@Janette Olano if someone has no money and the offer gets accepted, is there a way to get passed giving the earnest money withing the 48 hour time period or should I have a buyer already lined up to give me that check. Do you mind explaining step by step how the process is done. You bid on a property with a broker...then once offer is accepted do you then try to find a buyer or do you find a buyer during the bidding process? Any help would be appreciated. Thanks. I am about to close on my first REO and I want to know if the process is the same.

Thanks brother but I finally figured it out. He did take it down I believe.

Let's say someone is starting out with no money and they get a hard money or private money loan for 100% of the purchase price and repairs, etc. Would they have to wait until the house sells to get paid? Is there a salary that can be worked out? 

Hi, I live in Essex County, NJ. Looking to do my first flip. Does anyone in the area recommend any contractors.

Wow @Monika Smith you hit it right on the nail. Thanks for the Zbuyer recommendation. Don't worry Isaiah, we all get to that point. I know the last thing you need is for people to tell you to keep your head up but take it from me. About 2 months ago I was in a situation that I just wanted to end, and I mean heavy drinking and all. Then the next morning I woke up and was like, wait a minute, either I keep doing what I am doing and I keep getting the same, or worse, results or I change my attitude and please excuse my language, but I had to stop being a little biotch. Now I am 30 years old and believe me I have read all the self help books and all the audios you can imagine but the thing I was missing was persistence. It's never easy at first, whether it's self improvement or even starting a business but just know that's it's not impossible. You have to do what you can with what you can. There are people who had it worse than us and they made it. Now since the last 2 months I have been busting my a** with my business and I just got my first deal. It was a bank owned REO property that was listed on the MLS, something that 90% of the people said I could not wholesale. Absolutely no marketing money needed. I found the deal on Zillow, made an offer, and during the negotiations with the bank I soft sold the house on Craigslist and found a buyer. I explained to the buyer what was going on. The house was listed at $44,900 and I got it for $38,000 ( I could've gotten the property for cheaper but was impatient and with the money I did not make, I made up for with education). I sold it to my buyer for $42,000 so I am making $4,000 on the deal which only took me a few hours. Now that's a little amount of money compared to what other investors are making but now this first deal showed me how I can make $10K or $50k per deal, and maybe do a few a month. Now, here I am, a newbie among newbies, having no idea what he's doing, failed at everything he did in life, and at age 30 had to move back home because of my failed business which ran my money dry and took my credit score from a 650 to a 300. I'm driving around in a car that sounds like it's going to break but you know what? I created all that and just like I created the life I don't want, I can create the life I do want and that's where I am at now. So if someone like me can wholesale an REO which is super complicated but not impossible and definitely not recommended for a rookie like myself, then I know 199% you can make money in this business. Listen to the podcasts, watch the YouTube videos, keep writing down your goals, and most importantly connect with those who are where you want to be whether it's at your local real estate meeting or on Bigger Pockets. You won't believe how many people, who are so successful now, started from nothing, and worse off than you and I. We live in a great country, and there is so much opportunity, and best of all, we're not dead. Sorry about the long story but brother, your life can change....but it all starts with you and what's amazing is that it can start now....

Hello everyone, I viewed this property today in Newark, NJ and was wondering if by the numbers you guys can help me out. Now the agent who showed me the property, who also has done investing, told me with some work, about 20-30k I can list the property at about 375K. Asking price is $275K but let's say I get it for $250k. So I can either flip it, keep it for cash flow, or even maybe wholesale the deal. I am still very new to all this but I am just throwing myself out there to take action and see properties. These are the numbers. Also has a garage that can be fixed up and maybe be rented out as a storage space or a car garage. Sorry if the information is not perfectly posted but somehow it was not copying and pasting correctly as it was in the report. Any help would be appreciated. Thank You.

This property is a two story all brick building consisting of 4

Commercial Stores (Hair Salon, Church, Braiding Salon and Barber

Shop) and 2 two bedroom Apt's. Separate Utilities.

Price Per Unit $45,833

Gross Multiplier 5.05

Cap Rate 13.42%

Number of Units: 6

Construction: Brick

Income

Gross Income Rent $54,420

Expenses

Taxes 2015 $7,531

American Water 1,332

Elec. 0

Maintenance 5% + Vacancy 5% 5,442

Gas (heat & hot water or Oil- apts)

0

Insurance 3,210

Est. Total Expenses

17,515

Net Before Debt $36,905

First Mortgage Annual Payment $14,469

Second Mortgage Annual Payment $0

Total Debt Service $14,469

Estimated Cash Investment $72,313

Estimated Cash on Cash Return

$22,436

Est. Percentage Return on Cash Investment 31%

 Lease

Unit Tenant Rent Exp/renew options

1 - Apt. 1 - 2 bed -850 vacant

2 - Apt. 2 - 2 bed 850 vacant

3 - Church 600

4 - Hair Salon 985

5 - Braiding 600

L1 Barber Shop 625

L2 garage 0

Monthly Total $4,510

Estimated Annual Income $54,120

Acquisition Cost

Downpayment 25% $68,750

Points 2,063

Attorney's Fees 1,500

Total Estimated Acquisition Cost $72,313

First Mortgage

Mortgage Amount 75% L.T.V. $206,250

Interest Rate 5.00%

Points 1% 2,063

Payments Per Year 12

# of Years Payout 25

Years to Baloon 5

Monthly Payment $1,206

Annual Payment $14,469

Second Mortgage

Mortgage Amount $0

Interest Rate %

Points 0% 0

Payments Per Year 12

# of Years Payout 30

Years to Baloon 5

Monthly Payment $0

Annual Payment $0.00