All Forum Posts by: Mijin Kim

Ika, your information was exactly what I was looking for. i was suspicious of that. Would you say it's not a good investment opportunity even if the "numbers" seem to work? - it's a small town so comps are a little hard to run but according to a local realtor its ARV based on the few available comes is around 180K conservatively and I am estimating about 60-80K repair (wholesaler's estimate is 40-60K) given no known structural issues. I should also mention it's a triplex.

Hi!

I recently came across a property owned by an LLC. The seller's asking price is 45K. The house is a couple hours away from where I live so I first looked up the sale/purchase history of the property and saw that there has been a HUGE range of fluctuations in its sale/purchase price in the past, I can't quite tell what's been going on. I suspect it involved some foreclosure/auction and possible lease option or some type of owner financing transactions by investors. I'd love to get some more input from those of you who can "see" through these transactions. Below is the price history:

Hi! I am looking to find experienced investor-friendly mortgage brokers in NY and upstate areas for lease options and sub2 deals. Your recommendations would be greatly appreciated! 

Thank you, Don. You point is exactly what I am concerned about. It's a property about an hour away from where I am and apparently you should actually go to the building department to find out what exactly needs to be done. And from what it looks like half the first floor is left undone (halfway constructed) so I highly doubt that it's a matter of just bringing it to the codes." I guess my real question is even if the construction fee is reflected in the selling price, will I be able to find any flippers who would be interested in buying it. Hard to know. Thank you for you input anyway!

Hi all, 

Has anyone dealt with a wholesaling opportunity that involves an open permit? Is it something that's worth bothering with, meaning, would cash-buyers/investors consider buying a house with open permits?

I have come across a wholesale opportunity that seems pretty good in several ways, except for this one issue. It has an open permit of over 10 years. Long story short, the owner of the house got a permit in 2007 to build an extension on the first floor for his wife who had become disabled due to stroke and needed to live downstairs at all times. Sadly his wife passed away less than half way through the construction and the owner just dropped everything, leaving that part of the house unfinished with wood and metal beams revealing. 

The seller is really motivated but is it something i want to or even can bother with? If so, what are some of the problem solving strategies? 

Thanks so much in advance! 

LEAD ANALYSIS: WHOLESALING A PRE-FORCLOSURE PROPERTY

Hope everyone’s having a great holiday weekend. I would like to get some opinions from experienced wholesalers and other investors on this wholesale lead I came across in Westchester, NY.  Based on the given conditions including financial situations, I am thinking this is NOT a deal and should let it go. But before I conclude so, I am wanting to make sure I am not missing potential strategies that could possibly save this lead. 

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HOUSE CONDITION:
- BUILT 1969
- TWO FAMILY:

           - UNIT 1 (OWNER OCCUPIED): 3 BED/1 BATH 3 PLUS FINISHED BASEMENT WITH ADDITIONAL BATH

           - UNIT 2 (TENANT OCCUPIED): 3 BED/ 1 BATH, MONTHLY RENT $1900

- HEATING: HOT WATER HEATER WITH GAS (FURNACE REPLACED IN 2007)
- NO PLUMING OR ELECTRICAL ISSUES NOTED
- A/C: WINDOW UNIT
- WINDOWS REPACED 15 YRS AGO - FINE, STORM PROOF
- KITCHENS UPDATED 2001
- ROOF OKAY

FINANCIAL STATS:
- CURRENT MORTGAGE BALANCE: $431,277.28

- MONTHLY PAYMENT PRIOR TO FORECLOSURE: $3267.98

- BACK PAYMENT AS OF 04/16/19: $41,208 (IF PAID, LOAN WILL BECOME CURRENT)

- ANNAUL TAXES: APPX. $17000

- SELLER HAS NOT BEEN PAYING MORTGAGE FOR THE PAST 10 MONTHS (SINCE JULY 2018) ACCRUING A TOTAL OF $8528.16 (APPX. $853/MONTH IN FEES/FINES)

- ARV : 630K

- REHAB COSTS: 80,000

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I have considered Sub2 strategy as well as cash purchase for the end buyer, but it just doesn't seem to work due to the high mortgage and low equity. I'd appreciate it very much any input either confirming my thought or pointing other potential ways to save this lead.

Thank you so much! 

Thank you so much again for all of your insightful advices and questions. After intense 48 hours involving exhaustive virtual and local research, I decided to pull out. Not very surprisingly the rehab expense seemed to need to be higher and the comps were lower. Even then I still wanted to explore ways to "save" the deal by re-negotiating the purchase price. The deal breaker was that i was asked to sign the contract without actually seeing the property, which was not a part of the initial presentation of the deal. I know it sounds really bad - and it was. 

I have to say though the wholesaler did work very hard and diligently to help me connect with several local RE professionals while leaving freedom for me to choose my own team. And most importantly he took a full responsibility of the unsuccessful deal and sent me a photo copy of my check voided and torn immediately. As a wholesaler in training myself, I learned a lot from some of his mistakes and more from a lot of the good work he did to provide resources for all parties involved (talk about a wholesaler as a problem solver!)  --- Now I hope I don't sound like a battered wife defending her abusive husband... do I ?! ! :)

All in all no doubt I learned so much and some priceless lessons through my mistake. I got much better at rental property analysis and pulling comps, talking to local RE-related pros, how to start learning about new distant areas, and many more. Most valuably I learned the crucial importance of self accountability in action that's distinct from fear or analysis-paralysis.

Once again, all of your help was invaluable. Thank you! 

Hi all, 

Thank you so much for all your inputs. The specific area where the property is located on is Haddington area. I am not too familiar with this particular area other than having driven around the neighborhood and getting a "general sense" about the quality of the neighborhood. I am embarrassed to disclose that i have not seen the property itself. It was presented in local REIA group by this wholesaler whom I have known for a while. He's been a wholesaler in Philly areas for some time, seems decent, and put me in touch with a local property management company, title company, contractor, etc. with a disclaimer that he's not affiliated with them.

Ryan, thanks so much for your inputs about the 70%-80% rule. i was going very conventionally about 65k ARV based on my quick search on Zillow (his ARV was 90-110k based on the comps he had run), so I need to get a more accurate number on it. But youre right, based on my conservative number 44k is too high for an asking price. I'd like to see if there can be re-negotiation pending the inspection.

All of you seem to share my own concern about investing in an area I am not too familiar with. I plan to visit the area and property as well meet the property management people, and will get a closer sense of whether I should move forward or pull. 

Thanks so much again to all of you! 

Hello, 

I pulled a trigger - somewhat impulsively -  last night at a meetup to make a purchase offer on a deal. I made a $2000 deposit on the spot. I think it's a classic, not too exciting but small and consistent buy-hold cashflow deal. Because it's my very first rental property to purchase, i am pretty nervous and would love to get some inputs from those of you with more experience and insights. 

So the property is a single family house in a C neighborhood in West Philadelphia presented by a wholesaler. 

3 beds/ 1 bath

990 sqft

Year built: 1926

Annual Taxes 308

ARV : 90-110k (I think it should be around 65k)

If 23k (new bathroom, etc.) --> rent : $1000-1200

Asking :44k

Above are the estimates provided by the wholesaler. I will probably spend $10k for basic rehab for roof and painting. I also think his ARV was too high. Going very conservatively I like to think it's rather around 65k.

Any inputs you might have would be really appreciated. Thanks so much