All Forum Posts by: Mark Saenz

Sorry guys. I coach little league on Saturdays...I won't be able to make the 7th, but I'll do my best to make the next one.

During the week either lunch, or evenings would work best for me. Tues or Thurs preferably.

Mark

I have been considering starting a club here for a while...just been a little busy. How many people do we have interested? I'd be interested in helping out. Let me know where and when....Amorcitos on 1604 and Huebner (I think) has a nice room we can probably use....there should be a few places. I'm on the NE side.

P.S. To answer your question about 9K....it depends on the condition of the house and the margin in the property. If you want to establish yourself as a good wholesaler...then make sure you are leaving pleanty on the table for your clients to make a lot of money...that will keep them coming back and they will ACT when you send them a property because they know it's a good deal coming from you. My opinion Amigo and the way I run my businesses!

No offense taken and I completely understand what you mean; however, I must point out that I never asked anyone to call me or "self promoted". I simply stated that this is not an easy answer and there are a lot of things to be discussed to arrive at the right answer. It's hard to give a legitimate answer buy just seeing a little forum post here and there. What I meant is it's a long answer (and quite frankly I don't type that fast)

Remember, he asked for advice from the PROFESSIONALS...so I feel it's important to give PROFESSIONAL advice.

As for the 6 posts thing....well, I am new to BP; however I have been posting on forums for years....just not this one. I started investing in 99 and have A LOT of experience to share with newbie and seasoned alike. Trust me...there isn't anyone out there thay knows everything. I know a lot of the "big guys" personally and they are usually very good a one thing and have some knowledge about other things.

So, FinanceExaminer, I understand what you meant in your post and that you are just being protective of the community which is a GREAT thing....but no self promotion here. Just trying to offer great advice that will help the readers.

Let's just make sure we don't try to kill the good guys either by being a little too accusatory.

Amigos?....Amigos!
Mark

P.S. Please reread my post...I never stated to over value the property in any way (which is what you are alluding to)...as a matter of fact that is not the right thing to do and will usually just bite you in the end...because they can't refi for what they owe you when that time comes (potentially). What I meant by a premium is like DT stated...he could get top dollar. He is absolutely correct. I sell homes every month in a soft market and because they are OF I can get market value and I don't have to discount my product. BUT I DON'T RECOMMEND overinflating the price of your home just because there will not be a bank involved with OF therefore no appraisal. I don't believe that is ethical, but that's me.

Again, please clarify before you accuse.

K, let's talk business now...I know you probably have this down...but for the sake of education for everybody I feel this is important to mention:

In your original post you had the breakout...

Here is the business side of your guy's (guyzes, youz guyz'.....ohhhh whatever...YOUR) business.

If you don't have a lot of money then you have to measure your leads and CONVERSIONS to know where to INVEST the money.

So for your leads (at least this week)
69% of your leads came from website....

METRICS BABY!

now you need to see which leads convert to actual MONEY in the National Bank of DJ.

This will let you know where to invest the returns!

We are now 1 step closer to a million bucks!

Good luck BPers!

Man I am motivated!

Amigos,
Mark

Daniel,
All of the above is good to go. I am not a big fan of Trulia or zillow for comps...too much room for error.

Think of this...if you buy this property what will you exit strategy be? Flip it? Will you use a realtor? Will you ever use a realtor to sell a property? If the answer is yes...then there is incentive for a realtor to do whatever you ask of them....for example pulling comps for you.

You should have realtors on your team. they can be a wealth of knowledge and a source of great leads....

All youhave to do is know how to TAKE CARE OF THEM...they work for commission so just make sure they have a way to make money. They will respect you for respecting them and they will do everything they can to make sure you have success because they will have success.

It's nice to be able to pick up a phone and say hey so and so I am thinking of buying this house can you run comps for me real quick.

Hope that helps you....go do it now so you can get on with this deal and make some money!!!!!! Good luck!

Amigos,
Mark

What????? Marketing works? Amazing! LOL Great job Danny. I know your post inspires people....keep up the good work.

Amigos,
Mark

Man....this is more a phone call answer than a forum post (because there is so much to it) but I'll do my best....

The RIGHT answer is going to ensure that your decision is strategic in accomplishing a specific goal.

POINT - Most of the people buying the "McMansions" do not have a problem qualifying.....

FinanceExaminer is right in that OF will only broaden your buyer pool and YOU are right too in that going OF will allow you to get more...mostly because you are demanding a premium for offering a buyer something they can't get unless they go this route.

When you start playing in the Owner Finance world (which is one of my specialties) you may not draw A+ candidates... the "steady streem of income" may not always be as "steady" as we would all like. Make sure if you go this route you get a really really qualified candidate...especially in that price range.

Also, I would recommend that you pull equity out and sell on a wrap in second position....don't jeapordize all your mom's equity with someone who has possibly proven they are not bank lendable....

Be prepared to make payments on the first if your buyer fails to make payments to you...this will aoid the first foreclosing on the property...again...put you guys in a bad situation...
Use a small local bank and let them know about the wrap and get approval....because if you wrap and the underlying bank finds out and freaks...they may call your note due....oh and if you sell it...it's no longer yours so you can't refi it if you don't own it.

Lots to consider....but I can't stress enough that the decision has to be made to accomplish a specific end in mind.

I really hope that made sense. If not...ummmm...sorry!

Here we go....
If you are going to make this conversion (and you want to do it right) you are going to want to chheck with your city to see what upgrades you may have to do. this can be costly....but very possible. My question is...have you thought about the cash outlay this may require?

As far as the comps go...2006 will not matter. Different market...different prices. As a matter of fact, when people use the ole..."Well in 200X it was worth X", it's usually because they know the value has dropped...often times pretty significantly..especially in the higher priced properties. Now there is a possibility this is not the case at all for your property. Just make sure to get recent comps.
'
If you are getting a loan, the bank will make sure it will appraise anyway.

Now here is the VERY IMPORTANT thing...
when you take it from a residential property you will using the Comps or comparable approach to determine the value...so if the other "mansions" of similar size are selling for 500K...then arguably yours is worth 500K etc.

When you convert this bad boy....you will be using the Income approach to determine the value of the property. So you want to make sure you aren't going to decrease the value by doing the conversion. You can google the income approach...or I may have written about it on my blog. I am not sure...either way, learn about it!

Lastly, there is a saying in this industry..."What's it worth is not the same as What's it worth to me?".

The reason I mention this is because if you are making this investment...it should be for a purpose....to keep in allignment with a goal of some sort....a step towards an end in mind. So for example if your goal is 10K/mo cash flow from properties and the purchase and conversion will allow you to achieve this...then your answer is obvious.

Here is another example: Your goal may be to pull outa quick 200K and still cashflow the property 5K and maybe you can accomplish this by buying it for 500K using the comparable approach; however, after you do the conversion you refinance it using the income approach and it's worth 1M and you get a loan for 700K. Now you paid off the original note for 500K...made 200K and hopefully the expenses are lower than the income so that you have your cashflow.

I AM NOT SAYING YOU CAN DO THIS WITH YOUR PROPERTY
becasue I do not know your numbers; however, these things are possible if your numbers work. Run the numbers and weigh your options!

Hope that helped!

Amigos,
Mark

Did you state in your contract that you reserve the right to assign or put and or assigns?