All Forum Posts by: Michael Williams

Hi Michaela
Thank you for that information, that's why I posted...so I can learn something. Do you know what that type of affidavit is called? I have all the heirs addresses, those are the people I am sending those letter to. 

Wayne Brooks

Wayne Brooks

Thanks for the input Wayne, that's why I put this scenario out on this forum so I can get the prospective I need from professionals. Once I get a response from the owners I will have a better idea of how close I can come to my numbers and what is any liens are against them. I have been going to the court house researching as much as I can about the properties. I have more time know to get to know the people in the court house and create a relationship with them. This will help me in the future as well. I am actively seeking other deals.

I quit my job today to pursue real estate investing full time, so I am very serious. I have been casing 5 properties in my area that I know I can get for the taxes or dirt cheap. My goal is to purchase the two best ones cash with a portion of my retirement money. I have located the owners on all of them and sent my first formal letters last week. Will be sending the second mailing this weekend. The two I want to get are owned by the same person and are next door to each other. I am aggressively going after these two properties because I have been passing them for about 18 months and know that they are inherited and unwanted properties. The city they are located in is a small town outside of Atlanta and the entire Atlanta area is a melting pot magnet for people and businesses.

The Plan
My goal is to get both of these properties for under $20k and budget between about $70k - $80k of hard money to bring them to like new condition. At this point I am estimating $40K rehad for one and $35k rehab for the other (these are guesses until I get a proper appraisal from a contractor). The ARV for one is roughly 120k and the others ARV is roughly 110k, but I will be more accurate when I have my realtor comp them for me. Since I will be getting them so cheap there will be a lot of profit. The goal is to retail both in about 6 months, which will put the sell around May. The profit margin after the sell on these properties would be ridiculously attractive to a lender and would be a good start to my eventual buy and hold business model.
$230k Retail Both Properties
-$80k Loan
$10k points Interest
$140k
-$20k investment
-$7k Fudge Factor
$113k PROFIT
Worst case scenario I can run over by $30k or get less at retail and still make $80k profit

The question:
Is it possible to structure this as one deal to a hard money lender or are there laws or rules in Georgia preventing me from funding both as one? Or is this at the lenders discretion? Do I need to retail one in my name and the other in my wife or son's name to avoid gains taxes on second sell?

What other factors do I need to consider?
If you where a hard money lender and I am a first time rehabber, would you fund this deal? If so why? And if NOT why? What terms would you insist on as the lender? Would you recommend a contractor? What would you require from me personally? 

Hi Valorie, If you've got family in Topeka check to see if anyone in your family is an agent. Check your church family to see if their are any agents. Check you pool of close friends to see if there are any agents or if they have someone in their family as agents. Between all of these circles, one of them has an agent. While you are looking within that circle you are informing everyone that you are a real estate investor which increases your chances of getting deals. But back to the agent. Once you locate which circle the agent is in get the friend or relative in that circle to introduce you. Don't ask for comps, tell them this; "I am a real estate investor and I am building my team to grow my business and one of the most important members needed for this team is a real estate agent. I am looking for an agent that is willing to work with me some time in the future once my business is established to run comps for me. I am not ready yet but I would love to stay in contact so that when that time comes I can bring you some solid leads for your business as well". Conversation started.    

I have a client seeking to pay cash for a townhouse or condo in the Alpheretta, Peachtree City, or Sandy Spring areas. Will bring buyer for half of fee. Will entertain other decent areas. Condo may be an option. No Full Price, she is seeking discount.

Contact Me: 901-488-2777

Bingo Marvin. 

Hey Tony, learn how to us TERMS the right way and you can get money in the beginning, while you cashflowing, and if you sale. Or control it and still get money now and later. I left a PM for you that will help you with this deal.

I've suddenly decided to go ahead and quit the 9-9 job in 30 days and do real estate full-time. It seems as soon as I mentally made that decision deals and opportunities are falling into my lap. Since I am an internet marketer I am helping a friend to market her Big beautiful corner lot house in Lithonia in exchange for access to the MLS. She is a new realtor. I have another friend that has access to hundreds of 90 day lates through her job and is coming onto my team as a partner. My wife has decided to become a realtor to help the business, Jackpot after jackpot. OK got that out of the way.
My wife and I had my "CASH 4 HOUSES" tshirts on at a restaurant Sunday and this guy stopped my wife and ask if she could buy several houses at one time. Jackpot again. Here is the deal.
One house ARV140K - Second house ARV 89K - third house ARV 49K, all free and clear. Owner is sick and can't keep them. Owe $11k back taxes - need $2k for A/C unit in one. No other repairs, tentatively. All have tenants with a total of $2635 per month income, this will go down with resumed tax and insurance payments. Owner wants $150k for all three and is open to any creative financing after he gets at least $50k up front. I already have an idea of several ways I want to approach this deal but I would like to hear some of the seasoned investors ideas so I can better formulate my plan to acquire and hold. Will be signing contract Friday. My credit score is not strong enough to get a hard money loan. Will appreciate all help.

Hey Igor sorry for the long delay in getting back with you. I think this person can answer this question better than I can. Hit him up and ask your question. He is a regular on here. 
Scott Trench