All Forum Posts by: Mike Flora

@Tony Hightower just sent you a message

Any investors in Clarksville Tennessee I could get some info from???

@Jason Jason I flat fee lost all of our rehabs/wholetail and I will have them send a picture of their business card with their license number on it and state the time they will be going before I give the code to them. Have not had any issues yet and they can only access my number for showing because it only has it on the MLS so another safety filter as well.

@Nicholas Acevedo how much money would you get if you sold your primary residence and what’s your current mortgage compared to rent?? If you have lived in your primary for more than 2 years all your profit is tax free so it comes down to some math is why I ask. Might be better to take tax free profits from selling your primary and moving in with relatives and then finding something to invest in that will give you a lot more cash flow then your primary will??? Just do your numbers. Hope this helps

@Amy Little look into flat fee listing. We do it out here in California and it's $100. The broker lists it on the MLS for the exposure and you can choose to give whatever percent to the buyers agent, we give the standard amount to ensure showings and a sale, but we save the listing agent commission. We do get professional pictures done as well. You will be in charge of all the disclosures, termite report and paperwork needed that's listing agent would normally do. Very easy though. Just an idea for you.

@Ashly McGlasson how much is it listed for?? If it’s a lot then you can get rid of your agent and flat fee list it saving you 2.5-3% commissions and then lower the price to sell it?

@Twana Rasoul I agree with what @Jack Medford stated above. What are your goals and do you need cash flow at the moment. I have purchased SFR's here in Southern California, put them on 15 year conventional loans and don't cash flow at all but I purchased them with significant amount of equity and didn't really have to put too much into the property at all to get it rented. SFR don't cash flow as good in California as they do in other parts of the country but appreciation for cash out refinance, sale of the property, or just straight refinance so the property will cash flow later on will be all great options. Market has definitely leveled off here in California right now so be careful of your purchase price at this time. Might want to push for a little bigger discount than normal if your looking for rental investment right now.

@Sean OToole what I'm really waiting for Sean is what I PM you a while back about owners primary emails. Whoever can figure that one out and can gather that data from an excel list like you guys get us then that is a BIG breakthrough! Until that day though. Someone out there has the knowledge I think, just gotta find him/her like finding the next deal.

@Caleb Jones I have bought a large vacant list before and I also have campaigns of driving for actual confirmed vacants. The vacant lists are not very accurate at all. They come from the post office records of registered vacants. Some of these are up for sale on the market, some have already been purchased and a lot of confirmed vacants we find are not on the vacant list we purchased. To save you time though I would find a company that will create a postcard for you and send cards to the entire list. You will get return mail on the vacants that obviously are still vacant and the owner mailing address is the same as the target property address. Then you can go through the return mail, which will be smaller than the list you purchased. Tri Win will take an excel list, like property radar does for us @Sean

@Sean OToole, and send them all out for you. On the excel list just make sure it has mailing address and target property address and they will do the rest. Hope this helps, but the vacant lists have not been as good for us out here in California compared to actually driving the neighborhoods collecting highly distressed vacants and reaching out to those owners. I would do both if I were you, buy the lists and drive neighborhoods and collect confirmed good vacant leads.

I have been putting together seller finance deals with off market free and clear owners. Run all your numbers with the seller to make these work for you. You can usually offer more to get the deal done compared to flip/rehab prices and the benefits/cash flow comes on the terms. The sellers usually want to cash out so make your note short and sweet for them. Lots to take into consideration on these though with your goals, what your looking for, how much money you have etc etc etc. I have been playing the pay down as fast as possible so I have been putting together high principal deals but my refinance in 4-5 years is really nice and I have a ton of equity once I pay off the note. Looking for 20% discount on the purchase with minimal repairs or tenant problems and then adjust that number accordingly for a bigger discount as needed. The big hurdle is talking someone who wants to cash out into carrying paper for 4-5 years, but your purchase price will almost always be higher than your competition! So it can get the deal done sometimes. Example of one deal I did below....

Purchase price $292,000.00

ARV 2 years ago $355,000.00

Current ARV $400,000.00

$25,000.00 down payment

$14,000.00 total put into property so far since purchase

1 year 8 months left on note, deal is a 4 year note

Rents for $1950 a month right now

Payment breakdown: $1,100.00 comes off principal every month with 1% interest on the remaining balance due. Loan is not amortized. Current payment due is $1,298.16 to seller which drops almost a dollar every payment.

Loan balance at the end of 4 years will be $214,700.00

Property could be worth $424,000.00 at the end of 4 years

LOTS OF OPTIONS AT THE END OF THIS!

This was my first one so I could have asked for more principal and I do ask for more principal now especially since market is sketchy in California right now. I like the safety of being able to exit at the end of 4-5 years and the refinance option to cash out of just refinance for cash flow. Just an idea for you guys.

@Matthew Tavormina @Curtis Chen @Guillaume D.