All Forum Posts by: Kyle Cabral

Hi All,

General questions surrounding purchased foreclosed homes. I've been researching a lot lately and came across a seemingly foreclosed home that has not been listed on the MLS and was wondering if anyone could help educate me on the process. This question comes up cause a close friend of mine have driven by this what seems to be beautiful deserted home in a nice sub division where I live in New England. This prompted me to do more research and based on masslandrecords.com, I found that this home has been in forclosure for a few years. The assessed "value" of this home, is $550,000, although there is absolutely no chance that this home could even come close to that if listed in today's market.

A release of mortgage was issued by the bank in 2005 for the value of $440,000.  The home was originally sold for $550,000 in 2004.  Here are some more details and specific questions.

History

7/27/04 - $550,000 (sold)
3/30/11 - $489,900 - expired after being listed for sale

Release of Mortgage

Living Area - 3266sqft in 04 - Natural Gas Heat/Central Air

2011-  Oil Heat - 2600 sqft living

5br - 3.5 baths

COMPS in the are currently area around $400,000 but not in a location of this type as these COMP values are actually in busier locations and not quite as nice.

A couple of questions.

How can I get more information about this house?

Can I contact bank and make offer before it is listed as a foreclosure?

Very interesting that it was Natural Gas heat but now listed as Oil with 600 less square feet living area? Could someone guess on what could've happened?

But again, this question was more loaded around the process of someone defaulting on their loan, foreclosure process, ability of buyers to buy without being listed, and then the banks process to get it on the market again.

Thanks everyone for the help! Learn tons on this forum thanks to everyone.

Kyle

Thanks @Shaun Reilly - Really just scouring anywhere at this point in MA (up and down eastern most side - I have a condo in Malden), not really going to bite on anything but getting familar with the research as I really hope to make my first transaction in 2015 as I have a lot going on for the remainder of the year (getting married in September).  It was more an example to ask on the forums to get an understanding that my thought process is right and that's how many would approach a situation like that.

I like the additional note and getting concrete numbers, probably should kick off on the initial conversation before even offering to visit?

My focus in 2015 will likely be in the Southcoast area - maybe span into RI which is very close to where I am.  When I conjure up my plan but feel like there are more opportunities up north with the excess of supply.  In your opinion, is that not important? Should you have a specified focus and run with it.

Thanks!

Hi All,

I'm new to the idea behind real estate investing and am really all hands on deck in taking the remainder of 2014 to learn, solidify my focus, and move towards my first flip in 2015 and second buy and hold. I recently have been speaking to someone in Haverill, MA whom does not have their property listed (3BR/1Bath - 1400sqft) on the MLS or anywhere for that matter but seems to have a positive cash flow that one would be interested in, especially for the "starting out" investor. Here is my analysis after watching @Brand Turners YouTube video on how to quickly evaluate a deal.

Asking Price: $130,000
Down Payment: 20%
Remaining: $104,000
Interest: 4.5% over 30 Years
Final P&I: $526.95
HOA Fee: NONE

Rentometer has the median rental for a 3BR to be $1180 but believe you could push the envelope for $1250 - $1300 with proper tenant screening and past experience with another condo I own safely renting for more than rentometer medians.

Based on %50 percent rule, 1300/2 = 650 which would make my cashflow for this property $123.05 without negotiating down.  She has also made mention this was newly renovated.

I'd be curious to see how others on the forum would approach this deal and what other resources you would use.  Does this offer entice you to schedule a meeting or take a visit to the actual property?

Thank you all in advance for your knowledge, expertise, and help!

Kyle

@Joel Owens  Could you elaborate on the 10 cap you mention? Are there any resources you could share?

Also, @Jordan Vires  I think we are working on some assumptions, so the numbers can be skewed and at that price, based on the 50% rule, you are really right at the point where the deal does or doesn't make sense based on some items.

Are there any repair costs associated to the purchase or are all 26 units ready to go? Also, what percentage would you be putting down.  Knowing this we could calculate a safe number you probably could go in at, which would probably not be near 659k.  Also, I like Joel's mention that surrounds the low income housing, where headaches can be a problem.

More specific figures would help but I'd be weary.

Kyle

@Mike Hoefling @Shaun Reilly Awesome guys.  Thanks.  This is great information and really appreciate you lending your insight and experience.

@Steve N. - Thank you. I appreciate the forwarded information!

Hi All,

I've had this conversation a few times, specifically with my parents and others around me in the south coast Massachusetts area and had a question surrounding "legally binding" contracts that one requires tenants to sign prior to property rental.  Is it enough to conjure up your own contract on word and put a statement at the top that says "this is a legally binding contract", or do you have to get it notarized or do something special for this document to hold up in court if needed.

I am just starting to get my feet wet in real estate, am sole owner of a condo in Malden, MA and 1/2 owner of a two family property in New Bedford, MA that net a positive cash flow of $450.00/month.

I ask just this to increase education and knowledge giving my current investments. I do plan on moving away from buy/hold strategy and set a concrete business plan for entering real estate with a focus on flipping. At this point, I am just researching, learning, and hopefully in the near future moving into REI meetings and networking and building relationships.

Thank you in advance.

Kyle