All Forum Posts by: Michael Lauther

on the face of it this property is going to cost you 163,500 plus closing costs and the gross rent exclusive of vacancy costs. your 1450 monthly rent annualized is 17400. which means that your gross return on cash invested is approx 10.6% you then need to deduct maintenance, property management, taxes, insurance. this will reduce your net cash on cash return to well under the gross number.
this may be a great house if you were to live in it but the numbers just don't work out well as an investment. there are properties in other markets and perhaps even in your own market that sell for under 40,000 and would rent for 600 a month. this would generate a gross return of approx. 18% . in this case you could possibly end up with a 12-15% net cash on cash return. The property you are looking at could easily end up with negative cash flow.

I have been paying $45 sq ft in NY for granite. if anyone locally, The Hamptons, knows of a supplier that can do it for less please let me know. thanks

"First off, yes Blazevic Funding Group (BFG) is legitimate. We have close to 500 members in the group, at various levels"

just my observatin, went to the Blazevic web site and there did not appear to be a large number of properties listed for an organization with 500 members
. As a cash buyer of inexpensive properties (under) 50k I was expecting to see more opportunity.
perhaps i did not manipulate the site correctly.
Edy if you have any input i would welcome an explanation. I am here to do business and will consider all legitiamte opportunities.

Edy: thank you for stepping up and answering our concerns with a frank and straight forward reply.

If you check out my profile page you will see the markets that i focus on, but you may want to check out the properties that bigger pockets investors are offering by clicking on properties. this would give you an idea of pricing in different markets across the country.

The following is only my observations based on my own requirements for a rental property. My biggest mistake in real estate was to buy property with poor cash flow with the goal on selling it for a profit when the price went up.
There are markets across the US that will return considerably more than 4.5%. There are many investors on this site that offer turn key properties that pay in excess of 10%.
Second if you are only operating with 115k or thereabout in cash you would not have enough cushion for a property that will eat up most of your cash.
Third the price of properties that sold within the last year do not reflect current market value and what properties are listed at do not accurately reflect value. Property that has sold in the last three months that is within a few miles of the property you are looking at, with similar characteristics is a better gauge of value.

The Law suits against Bank of America and Countrywide whom they purchased, with respect to their miss management of their mortgage portfolio may be a bigger concern especially if wikilieaks has information substantiating criminal actions in this regard.
I have found Bank of America to be grossly incompetent when it comes to modifications and in my opinion borderline criminal but if their unbelievable lack of concern for their customers turns out to be intentional and criminal they will pay the price. i would not have my money with the Bank of America.

While i haven't read through this entire thread the following is my experience in NY. first a BPO is a brokers price opinion and not an appraisal completed by a licensed appraiser. in one case Chase did a BPO and came out with a market value of 625,00 for a property that had 950k owed on it . the offer came in at 500k and chase indicated that the investor who holds the note would accept no less than 550k. the buyer sent in a contract meeting all of the requirements but chase took so long to evaluate the case they ordered another BPO this one came in at over 700,000 only a few months after the original. they would not specify exactly how much the BPO came in at. The buyer then paid for an Appraisal by a licensed appraiser that came in at 560,000. the Bank would not consider the engineers report or any other comp but they will consider an appraisal by a Licensed appraiser. It appears that BPO's in a market where there are very few sales can be grossly misleading.

it is my understanding that the owner of the property can not benefit from a short sale and the documents that the bank requires will stipulate these conditions. the
only exception is under the HEFA program where the current owner can get a $3000 relocation payment.

I have had some success with lending from MY self directed IRA. but i would be interested in hearing more from Marc about buying discounted notes. what kind of return and security do you find in this area?