All Forum Posts by: Michael C.

I am finding that there is fierce competition with REOs often selling for way more than they should. Sometimes the agents tell me that the property is already under contract and well over the listing price. I have seen some of these properties and they are not even worth the listingprice.

Are any of you still using direct mail for targeting landlords, pre4s, probate,etc? Are you getting better deals than REOs?

Anybody?

I'm looking at an REO Duplex (3/2 & 2/1) that a realtor sent me. One highlight that turns me on is that I can use Conventional. Property looks pretty good inside. Below are the stats:

Asking Price: 70 k
Dwn Pmt 20%: ~15k

Mortgage $365.92 (55k financed @7% 30 yr)
Taxes 400.35
Insurance 100 (have no clue what insurance would be (should be alot less)
Maintenance 80 (another guesstimation).
prop mgmt 160 (10% of gross rent) If I am not willing to manage myself.
Total Expenses: $1,106.27

Gross Income: Conservatively: 1600, $1750(low avg w/in 1.5 mile radius according to Rentrange) If I go section 8 I can max 1450/month on 3/2 and 1200/month on 2/1= 2650!)...but charging that much I will not be able to get regular tenants not on section 8. I do not want to sit on a vacant property.

NET $493.73 (going off the most conservative #s of $1600)

Rules
2% 1400 (this rule is met easily)
50% 800 (need to get expenses below$800 to make this a deal?)

This is in a Fair residential neighborhood. Not a warzone. I was thinking of sending a lower offer at say~ 55-60k.

What do you guys think?

Ritch,

I have thought of doing the same thing,but haven't gone through with it. I get offers for 12- 16 months 1.9 % financing (cash advance), but just worry about "what do I do after the 12 months" if the banks with their credit crunch will not be able to mortgage them? How has it worked out for you? Please keep us updated.

No, but from what I hear these are cash cows. I would like to hear more info as well.

Good deal Anthony. A few questions

1. Would we be able to get away by creating the land trust on legalzoom?

2. How do you sell the land trust? Is there a lawyer involved?

Thanks in advance,

Mike

Hi Hi Mr_Investor,

Just sent you a colleague request. BP doesn't allow me to send PMs to non colleagues. Accept colleague request and I'll send you my email addy.

Thanks in advance,

Mike

Thanks for the quick reply Curt. I am looking for an option agreement to wholesale another wholesaler's deal. I have a wholesaler who doesn't have a buyer and I think I can make something out of this, but I don't want to risk or put up anything.

Thanks in advance,

Mike

Hi,

Can someone please post an example of the flex option contract or some contract that allows you to have an option to buy without putting up any consideration money?

Thanks in advance,

Mike