All Forum Posts by: Mike Mitchell

@Armond Wright

 not sure what you mean by Negotiate payments on his equity.. and with which strategy can i offer him no money down? owner finacing without paying off his mortgage?

@Jane A. you are right. i think he will be willing to lower his price and accept less money upfront if i can structure it correctly.

2 family house

-Seller owes 15k, with 2 years left on his mortgage. 

-PITI=1500

-both units bring in 1100 each. Tenants have been living there for 20 years and 6 years.

-Owner is motivated and wants 280k. but property is worth about 250 and it needs about 60k in work. 

-if not able to sell, he will continue to rent to current tenants and hire property management. he no longer wants to deal with repairs etc but likes the cash flow.

So 1st option is to throw out a low cash offer of what i can realistically pay to rehab and sell retail = 120k 

option number 2= pay off mortgage + cash to pocket and convince him to do an owner finance since he doesn't mind the cash flow. 

option 3= a lease option or  a master lease

but not sure how to structure this or if its feasible to me and the seller.

from my understanding most master leases are usually done on apt buildings. and lease options are usually done on a vacant single family.(never done either)

Personally I would like to flip or do a lease option to have less money out of pocket.

@J. Martin

Just trying to wrap my head around this as i have a similar deal in progress. isnt it risky to guarantee payment regardless of vacancy? wouldnt a big repair say 10k+ kill your cash flow? what is your exit strategy to make 150k? is there a certain criteria of house you look for to do such a deal? i.e newly built etc

@Julian L.

 looks good so far! what is the time frame on the total project?

Hi @Roy Assaf

any luck with your campaign? I gotten a few calls from sending out 700 letters  for 4 months. 4 calls. no deals

@James Wise

@Adam Hershman 

I understand, i think this is the best time for me. Theres also other circumstances leading to my decision. I have not flipped any houses. I have primarily been buy and hold investor..

@Dev Horn

Thanks!

I am currently in my second month of direct mail to absentee owners.

I have an adwords campaign going but have not gotten much clicks. I may need to raise my bids if this is one of of the best ways to market. 

I have not tried signs as yet because they are illegal in my area.

I am ready to quit my full time job. I have a part time weekend job that can support me and have about $10,000 to spend on marketing for the next 5 months. My goal is to flip as well as wholesale when i dont have the resource for rehabs. What is the best use of my time if i would like to become a full time investor? I am in the middle of my first direct mail campaign and do not get enough phone calls to outsource screening or to fill my day. As of now i plan on going to the probate court once a week and door knocking leads that are within a 5 mile radius of my house.

I recently started a direct mail campaign in the Brooklyn as well. I am mailing to 2fam and 3fam houses. Standard yellowletter to absentee 40%+ equity.. bedstuy bushwhick crown heights.. guessing i should stop?

@Steve Olafson from buying my first property retail last year. All of the rehabbed 2-3 families I looked at were fully vacant and fully rehabbed selling to owner occupants. From my understanding on a 3-4 family the selling price would still be based on comps like a SFR.