All Forum Posts by: Michael C.

Thanks guys. I am just looking for a creative way to acquire using the other guys money. My logic was....hey I am going to get an extra $640/month using his money. He has below market rents by ~$125/ unit. According to the seller the prop is in excellent condition.

Thanks for the replies. Im not sure I understand....even with 0 down 0% int and a $500 mortg pmt, without vacancies I would be cashflowing about $640/month without nothing in it. 100% of mortgage goes towards principal. If I can get seller to give me my terms......

sorry the cash ROI up there shows 1.5 times....its actually infinity.

Hey Everyone,

I just got off the phone with a seller of 2 duplexes next door to each other 4units total. C...D area. According to seller excellent condition. They are 4 1/1s and gross income is $2k/month ($500/pc). It was really hard to get comps because according to seller both duplexes are under one folio# for tax purposes. I am guessing ARV is ~100 to 120k. (there were no sales comparable) I was really conservative with my offer. I offered the seller 3 scenarios.

1. cash offer 40k . I really want to be as creative as possible with as little of my money in the deal.
2. Conventional. 60k
3. Seller Financing...85k (I didnt specify terms).

The seller was offended that I offered 40k cash. He almost didnt let me finish my other 2 offers. He said he would not take less than 175k. I was thinking after I hung up with him.....If I could get NO MONEY DOWN and my terms 0% int.....maybe I can give him his price.

I was running the numbers and if I could get my terms....

Mortgage $180,000.00
Mortgage $500.00
Taxes 360
Insurance 140
Maintenance 60
prop mgmt 300 (overestimating)
($1,360.00)

Gross Income 2000

NET $640.00 $7,680.00 /yr
CASH ROI 1.54
CAP 0.0768

If I could somehow get my terms even though i would be overpaying by alot for the prop...I would be having a couple hundred a month cash flow $640. Making money on the other guys money.....infinite amount of ROI. Am I crazy thinking this can actually work even though I am overpaying? My goals now....CASH FLOW.

I understand I didnt account for vacancy. Seller says guy across the street is charging $650/month and has vacancies (Speculation). Seller says he keeps his units full all the time and all tenants have been there for years. I checked on rentrange and the low end seems to be about $600 month within a 1.5 mile radius for an apt 1/1.

Thanks for the reply jim. Searching on google for this I came across callfire. They're supposed to be 3.5cents/min. The problem is that I can't even get their test thing to work. Oh well....guess you get what you pay for.

Anyone know of a good service for sending out voice blasts/ robo calls?

What have you guys found is better when mailing absentee owners?

Anyone?

What do you mean Bill....Stage your leases? If so, how much do you typically spend in staging?

Thanks guys for all the help & replies. Just an update.....

I bid 45k cash. The agent sent a letter/form/contract from the bank (~1.5 weeks later) informing that there are multiple offers on the property and to submit....>MY BEST AND HIGHEST OFFER. I replied to the agent that was "my highest and best offer". I got an email today (~1week later) that the bank went with someone else's offer.