All Forum Posts by: Robert G.

@Jamil Cole

I found the property you were referring to.....that listing was for an Unapproved Short Sale.

Who knows if and when it will close.  IMO, if the bank gets a BPO or sends anyone by to value the property, they'll quickly see that everything within a reasonable distance of that house is 250k and up......highly doubtful they'll accept the 120k you mentioned in your original post.

Besides, to address the heart of the issue.....short sales are time-consuming and unreliable (in the sense you cant be sure they'll close until the very late stages). Very difficult to utilize HML in such scenarios.

Essentially, you have a competitive advantage.  And, in this case, it is an advantage that allows you to pursue and profit from deals that appear marginal (or as losers) to other potential investors.  I agree this type of advantage is an enormous benefit.....I just don't see how it helps Robert or his quest to find deals.  If he dives in, buys wrong, and takes a loss.....yes, he may learn something he needs to learn about the flipping process, but it could be a costly education.....and in the end, the one thing we can be sure of is that he won't have learned the one thing he is asking about now: how to find the deals. 

@Omar Gutierrez

I have yet to find a legitimate and reliable wholesaler in this market.  And, honestly, I don't really blame them.  This market is so competitive that they can easily sell the property to traditional buyers or foreign investors for far more then a local flipper can afford to buy.  We each have a business model, and in the conditions of this market, it just doesn't make sense for a wholesaler to find a great deal, lock it up at a great price, and then sell it to you for a small (relatively) profit.  The demand is too high, the potential profits from other exit strategies too great.  

If you want to remain in this market, and you want a steady source of deals (as opposed to just stumbling across one once every year or two), then I think you're going to have to invest (heavily) in marketing.  Lots and lots of mailings, over and over again, waiting for those phone calls to come in.  Sifting through those calls, narrowing down the leads, and meeting with the distressed sellers.  It's hard work, it takes time and money, and it may not cater to your skill set.....but other then playing the auction game (which has a slew of other issues), I'm not sure there is another way to find enough deals to support your team in this area.  The other option, of course, is to relocate (there are plenty of places in this country where finding a deal is rather easy......its finding a buyer that is the challenge in those markets, lol).

A SFR in Miami for 120k?

Even cash only, that is ridiculously low.  I've seen tear downs in C areas asking 199k.

Are you sure that the 120k isn't the minimum bid at auction?  Either that, or you may be over-estimating the quality of the area that it is in.  Hell, in "B" areas, 1 bedroom condos cost more then that.

Redgy,

If you want a new agent, get a new agent.  But do so because of the way he treated you (and his lack of tact in his communications).  Not because he refused to show you this property.

In my opinion, there is a lot of bad information/advice in this thread.  And if you read through it all at once, as I just did, it becomes very obvious that one side of the argument is populated by knowledgable pros and experienced investors, and that the other side of the argument mostly relative novices (in comparison, at least) having a rash reaction and taking offense to the notion that an agent wouldn't treasure their business.  When in doubt (which is presumably why you created this thread), go with the successful pros.

Ryan,

I'll save you the time.  Simply put, the numbers don't work in this market.  You can buy a duplex if your goal is to reduce your own cost of living.  You can buy a duplex if your goal is longterm appreciation.  But in Dade and Broward, you pretty much can't buy a duplex with the goal of being a profitable landlord (in the traditional sense).  Purchase prices are too high, rental incomes are too low.  Factor in the high property taxes, high insurance costs, and the inevitable repairs/vacancy.....it's a losing proposition.  You either need to change markets or change your investment type.  Sorry for the bad news (I went through the same research and market analysis more then once in the last 4 years).

Is this property in Miami?  If so, given the rent amounts and purchase price, I'm going to assume its a somewhat rougher area.  For a quad in a low income area, you definitely need to bump up your repairs budget.

Also, the management fee is a percentage of the total rental income, not the net after accounting for vacancies.

Other then that, I think a key factor that hasnt been brought up is the $230 a month in Utilities.  If that includes electrical, its too low.  If its only water, its too high.  Either way, you need to research whether or not you can pass that expense on to the tenants.  If you can separate the meters and have the tenants paying their own utilities, removing that expense from your books makes this property much more attractive (and valuable).

If you have a general question, this is a wonderful website to turn to receive a variety of opinions or insights.  If you have a legal question and specifically want to receive an answer from a lawyer, do yourself a favor and consult a lawyer.  No lawyer worth a damn is going to be giving out legal advice on a free website, opening themselves up to all types of liability, with nothing to gain from it and only having a small glimpse of the underlying story/facts.   

Not in any area you'd like to live in.  Only way it is at that price is if it is in a dangerous/run-down area or if the property is in need of a six figure rehab.

@Maxwell Lee  I understand your point from a literal point of view.  If one were to crunch numbers and stick to just the official city boundaries, they'd absolutely be missing out on quite a large amount of relevant data.

My comment was more directed in a practical manner re Miami.  If searching for properties elsewhere and not having much luck, you can just go a few minutes further (in whichever direction).  You can't really do that here (well, absolutely not to East/West......you can go North/South in certain respects).  

There may be a large number of official "cities" down here, but in reality it boils down to Miami, Miami Beach, and Coral Gables.  I may be wrong, but I don't think investors in Doral or Hialeah really consider those to be separate entities from Miami.