All Forum Posts by: David P.

@Account Closed subject to can be a good option, but the underling numbers must work; you don't want to force a deal to work.  Your self imposed hurdle of "not much money" to work with is just that... self imposed.  If the numbers work, you can get the money; start talking to a hard money lenders and most will charge points and high interest rate, but they will also ensure the deal works for them too.

I would suggest you find a mentor in your area to help you though this process.  They will also know the local laws, how to help structure the deal etc.  This is why having a good team - at least people already set-up to help you do deals is important aspect to getting deals completed.  You should know a good RE lawyer that can close the deal as well; this should be high on your priority list tomorrow morning; start calling around, ask others in your area for who they use, etc.

Good luck Derek, and hope you a successful future!

- Dave

Sounds as if this has been going on for a while now @Brant Hampton and you are almost through it, so hang in there!  

I would get the final - final list and purchase a 1-2yr home warranty for $300-500.  Tell them you are willing to pay for the items on the list if this gets you to closing table in two weeks; if they keep asking for things you will never get the deal closed and it's time to put it back on the market cut your losses and move on!  Your agent should be assisting with driving this to close, and if they are not it's also time to find a new agent!

Best of luck and I hope you have a successful future!

- Dave 

Hi @Marcia Maynard I find that this doesn't work as the people at the big box stores (and smaller stores) don't care and duplicate the keys anyway.  

About 2 years ago, I had an extra set of locks from one rental that rotated them out after every move-out.  The thing I do  now is have the locks re-keyed after the move-out.  It's about $25 per door and well worth not having any issues later; and you have covered yourself if there are any issues.

Hope this helps, good luck and I hope you have a successful future!

Dave

Hi @Lawrence Sarpong that is option #2.  Some people would like more control over the deal so why I indicated other options.  The nice thing about doing RE transactions sometimes you have more than one option and give the current owner the flexibility to choose.  But giving the owners too many options is counter productive as well, so be careful.

If the current owner just wants out; he may not even consider the lease option, whereas it may be better to try purchase with no money down.

Hope this helps, and I hope you have a successful future!

- Dave

@Account Closed http://www.biggerpockets.com/renewsblog/2007/07/26/how-to-find-out-if-there-are-any-liens-on-a-property/

Good luck,

- Dave

@Derek LeBlanc you have a few options:

1. Contact to the bank and see if they will do a short sale on the property. Have all of your information together such as purchase price, repair cost etc. If the loan is behind on payments, know if taxes have been paid etc. This way the bank will know you are serious and they may do the deal if they know that they will not have to foreclose on the property.

2. You could do a lease option for two-three years and rent the property out for more than the lease payment - you keep the difference between rent and payment.

3. You could also do a subject to; often you may not need to put any money down to control the deal.

There are a lot of great post here on BP and highly recommend you understand all of these options further. Also ensure you run the numbers prior to making any offer and get a local mentor to help you through the process!  

Good luck, and please remember to VOTE on reply's you think have helped. This validates respondents posting and lets readers know that this information was valued.

Hope you have an excellent future!

- Dave

Welcome to BP Mark!  There is a wealth of information on this site, so hopefully it will help you get up to speed to doing your flips.  Be sure to check out the Podcast, Forums and the Marketplace as these will help new investors immediately, but also don't forget to search the forums for things you maybe interested or questions you may have.

Additionally, please remember to VOTE on reply's you think have helped. This validates respondents posting and lets readers know that this information was valued.

Hope you have an excellent future!

- Dave

Hi @Priscilla Z. so do you need to wait for the period so non-investors can bid on properties? Can you please explain how this process works as I have only purchased a HUD home as a personal residence a long time ago. Also, I have heard that most of the time HUD will accept a percentage below asking price of the property, do you find it is at 90% or lower??? Also, do they close the bidding nightly, weekly, or on a specified date?

Thank you in advance,

- Dave

Congratulations @Mark Ferguson  way to get past the "Ten" milestone... now only 89 more to go!

- Dave

@Jordan Vires the best way to evaluate is to use 50% rule (See @Brandon Turner video "How to Use the 50% Rule to Analyze a MultiFamily Investment": https://www.youtube.com/watch?v=KQmChuIW_sY); do you think you could make the mortgage with 1/2 the rent?  Not sure if utilities are inclusive or not, but you may need to take this into account as well when figuring out your numbers.  So $550*16=$8800/2=$4400

If you were able negotiate the price to $700K and 25% down and have loans of $575K @6% you would be at $3150 (P/I) payment and the difference would be $1250 or $78 per door and if you were to get the purchase price lower without having to pay utilities it probably would be a good buy.  

Additionally, evaluate the outstanding maintenance on the property such as roofing, flooring, interior/exterior paint, appliances etc and see what their life expectancy is.  In all properties it good to have a Reserve Plan of these items, expected life and how they will be paid for during your ownership.  Ask the current owner if he has something like this in place and if he does, ask to see it along with the rent roll for the past 5 years.  

It appears the current owner is motivated to sell if he is dropping the price and willing to finance.  It maybe worth exploring the idea of 100% owner finance as well; he could have a steady cash flow for the next 10 years but amortize the loan for 30yr and then re-fi the loan as you increase the value of the property.

You want a deal, but don't blow an opportunity explore other financing opportunities with the owner.  Sitting down and having a coffee or lunch to understand his goals is money well spent.  Do your due diligence! 

Good luck, and please remember to VOTE on reply's you think have helped. This validates respondents posting and lets readers know that this information was valued.

Hope you have an excellent future!

- Dave