All Forum Posts by: Matthew Rembish

As I am still a novice in real estate investing, I was wondering if anyone could explain what exactly composes "fixed costs" and if there is a formula out there for calculating it. (Maybe not the exact amount but just a number that could give you a general idea, preferably for single family residential).

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@Walter Pape I don't believe you can find that information on List Source but I do think you can in another program called Property Pro, specifically when marketing to pre-foreclosure properties but I'm not 100% sure yet as I have not tried it yet. I just thought it couldn't hurt to know this information either way should that question ever arise.

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@Chaz Reid Oh ok, thank you Chaz. That's actually what I've heard most investors say but it's good to get confirmation of that.

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When using direct mail strategies, what amount of equity do you typically look for in a property when determining whether or not to send a letter to the owner? I'm still pretty green at this but I'm trying to be as effective as possible.

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@Roland Paicely Thank you very much for the response Roland, I will surely check it out.

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@Fred Heller That is amazing, I didn't realize they would be so different.

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Originally posted by @Paul Ewing:

The biggie will be a combination of if you expect it to really flood and if you have a mortgage on it. A mortgage will require flood insurance which can run $2000 or more for each house. That can very easily kill cash flow. If the area has flooded in the last 50 years I would say you need flood insurance anyway even on a cash deal unless you are willing to write off the houses in case of flood or put the money into fixing them yourself. I have one property that I am required by the bank to have flood insurance on because the company the bank used says it is in a flood zone even though the government determined it isn't and I got the Zone X rate. Since the land it across from my great granddad's place and was owned by another great grandfather in the 50s I know that it hasn't flooded since 1907 and the now dry creek that is near it hasn't run except about a foot high during very heavy rains in the last 20 years so once I have the mortgage paid off in a couple more years I will drop the insurance.

Thanks for the advice Paul! Just found out that the owner is going to subdivide the lot herself, demolish the houses, and sell each lot for $200,000 (They're only 35ft. wide so I personally think she's crazy). I really appreciate the feedback and I'm going to have to consider all of those factors should I look into another house in a flood zone, which are very common in my area.

Thanks again!

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Originally posted by @Kurt Kwart:

Does it currently have flood insurance? Do you need a mortgage? Would one be your primary residence? If you need a mortgage, you need flood insurance for this type of flood zone (i'm guessing it's not V zone but whatever they call the bay side).

Flood rates don't vary from insurer to insurer so I would check what they are paying (if any).

It needs a mortgage and it wouldn't be my primary residence. The way I see it, I think I would have to raise it and I don't think I'm ready to get into that just yet.

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Does anyone have any experience using ListSource for finding pre-forclosures, absentee owners, probate properties, etc? If not, could anyone recommend a site or some kind of source to find these? I'm still pretty green at this and was hoping I could find some more direction. Any feedback is much appreciated.

Thanks!

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I hear Veil Corporate is a pretty reliable company. Check them out.

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All Forum Posts by: Matthew Rembish

Matthew Rembish has started 57 posts and replied 373 times.

Post: Fixed Costs?

Post: Equity?

Post: Equity?

Post: Equity?

Post: Direct Mail Property Sources?

Post: Houses in Flood Zones

Post: Houses in Flood Zones

Post: Houses in Flood Zones

Post: Direct Mail Property Sources?

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