All Forum Posts by: Mike O.

Price reduction from $70,000...Updated numbers, narrative, correspondence with insurance company and city officials, title commit, supplemental offering documents can be sent for interested parties.

Looking for cash buyer.

Thank you

[email protected]

605.370.9951

James Clark yes

@james clark yes

Hello, 

Please see offering below. It appears the links did not come through. I can email APOD, links, pictures (see additional detail below) . Title commitment just came back clean. Survey and Inspections will be complete by Aug 31st and provided at my expense. City of 200,000... great economy, diverse economy built on finance and healthcare, low unemployment <3%, low crime rate, no state income tax.

4-plex Investment Opportunity!

Offering contractual interest. I do not own fee simple title. Price includes contract fee and right to take title to the property. Title insurance, survey, structural engineer analysis, fire restoration analysis provided by seller prior to close at seller’s expense. Correspondence from insurance company confirming structure’s insurability provided upon request, correspondence from City of Sioux Falls regarding property’s eligibility for rehabilitation and exclusion from historical register provided upon request. Rehab estimate provided upon request. The property experienced a fire on 7/24/17 which impacted NE corner (rear) efficiency unit (specifically bathroom) and outside vinyl siding, tenants were given deposits and building is vacant ready for rehab to begin. Photos provided upon request. Gross rental income per operating data based on actual rent roll 2016. Vacant unit in attic with legal egress window along with electrical and plumbing can be converted as 5th unit for additional rental income. ** Please see hyperlinks for City of Sioux Falls profile and national media coverage.

Property Highlights & Pro Forma: 

Tax Assesed Value:

Land $11,000

Structure $79,000

Sales Price - $70,000
Price Per Unit - $17,500
Cap Rate – 9.84%
Cash on Cash – 8.84%
ARV - $170,000

ARV Price Per Unit - $42,500

Eligible for City of Sioux Falls $25,000 rehab loan at 3% 

Wallethub **

Wall Street Journal ** 

Forbes **

Estimated Scope of Repair Work:
New Windows and Exteriors Doors
New Siding
New Interior and Exterior Paint
Kitchen re-models with New Countertops & Appliances Bathroom re-model

New Interior Doors

New Wood Floors and Trim 

New Plumbing

New Soffit

thanks for the reply...by execute (contract) I meant the purchase agreement. i consulted with attorney and am all clear on mechanics of the deal. thanks

if i have a house under contract and subsequently found an end buyer to execute a whole sale transaction, is it legal to privately solicit the deal and sign? 1.find distressed property and execute purchase agreement as buyer at discount price. 2. can i execute the sale of the property (contract) legally to the end buyer as seller or must i wait to have deed passed on to me at closing, thus preventing a double close (no assignment).

Last night I looked at a home currently owned by a private mortgage insurance company. I am thinking of putting an offer in for $30,000 below ask. Does anyone have experience dealing with mortgage insurance companies...any information that could be useful in negotiation. I am basing my offer on 75% ARV less holding, rehab, and profit. I am meeting some subs on Thursday to nail down improvement budget prior to offer. I didn't know if anyone works with PMI (I have never) and might have insight as far as industry standard and protocol on PMI liquidation.

Thanks in advance for any help or consideration.

Mike

If the private mortgage insurance company is liquidating the property, I assume any existing financing has been paid off (charged off) or the policy benefit was given to previous mortgage holder?

thanks for the input

Tonight I am looking at a home with the seller listed name as a PMI from the agent. I am going through my diligence, and what I have found out is that the loan was originated in 2006 for 120k by Wells Fargo, it was bought in June 2016 by Wilmington Trust for $170,000 and then in November of 2016 the stated consideration money was $10 by a PMI. I am researching PMI formulas to try and get an idea of what their breakeven is (just as a reference point). I have read that most companies insure 35/25/18 % of loss?

Anyone offer some negotiation advice or perhaps a formula-theory to reconcile how much the PMI is into the property for? Heard of Wilmington Trust?

Great appreciated!

I am going to look at a home tonight, the home is currently owned by a private mortgage insurance company per the real estate agent. Does anyone have experience dealing with mortgage insurance companies...anything I nee to be aware of/information needed prior to making an offer?