All Forum Posts by: Lorene Fleming

John, check meetup.com, there are several and even a few in Pasadena.

Joel Owens, yes I knew the asking was not even in the range of possibilities but, because this is Cali I don't think $40-60 will fly. Even with the required rehap. I will submit an LOI though and see what happens.

Another question, Joel, should I make the lowball offer right off the bat, or a bit higher then after my inspections come back with the lower offer?

Sorry, Joel, I forgot to answer your questions, judging by the area and the other properties it is because the guy was basically a slum lord, the maintenance has obviously been very little if any in quite a while. The area has not changed in many years. There are a few apts but the last one was in the 80s.

There is some evidence of water issues in the roof of one of the downstairs units, the ceiling was cut out in a bathroom, but I could not get access to the upstairs or roof to see it. There is no apparent issue with the electrical but again I could only walk through a few apts, the rest are not yet vacant.

Joel Owens, thank you for that very well laid out info in words I can understand! To get to the bottom line, and for further clarity for me, the asking price is $375k, you suggest offering $40-60k for the property?

Thank you all for your responses. Ned Carey thank you that is what I was kind of looking for some kind of formula. Joel Owens its a smaller prop, built in 1960, 2 separate buildings with 10 units on each side, on .36 acre of land. I believe this to be the highest and best use, but how would I be sure of that?

It is thrashed but the area is fair, its a military town, the vacancy rate is 5% and renters make up abt 45%. Apts three streets down have less than 5% vacancy according to the manager but it has twice as many units and 20 years newer.

But assuming it is the highest and best use, with no room to add any units, what would I do different in valuing it?

Thanks again.

I understand the concept of making an offer on a mf based on NOI and expenses and the cap rate; however, in the event of an REO mf that will be empty - if not @ coe than not that long after - but still non performing. There has to be a value for the property, how does one go about arriving at it?

I asked the RE agent what the going cap rate in the area was and he said that there has been very little inventory in general and no apt buildings for sale lately to get a firm answer, but he guessed about 6% stabilized. This apt is far from stabilized and it is going for 11 cap using pro forma numbers.

Assuming he is correct, how would we come up with a reasonable offer price? I appreciate any advice I can get on this. Thanks in advance.

I am going to do my best to be there, I'm so glad you will be recording and posting - just in case. Thank you!

Joshua Dorkin sorry for the late reply, but yes what Kyle J. showed is what I was seeing as well. I was able to see it clearly in chrome, however.

Have you personally started looking? and if so have you had any luck with that strategy?

We're finding it increasingly harder to get any good reo deals, and I know our next step is to get out and door knock & phone call, but it's a little intimidating to say the least to get out of our comfort zone to do so. But I figured since you're in our general area, you may have either 1st hand exp or know someone who does.

Good luck to you in your endeavors! Keep us posted.

Michael, there are a lot of threads here on wholesaling and several people who do it and do it well judging by their discussions here, so before you go spending any hard earned dough, read through some of the posts on that topic.

Now I have a question for you, because you are in the Los Angeles area -as am I- have you had any luck actually finding properties that have been a good deal? I'm just curious, if you don't mind my asking, and if so how are you coming across them?