All Forum Posts by: Zoran M.

Hi all - I put in a bid on a foreclosed home that does not appear to be owned by a bank, but rather an investment firm. I believe this is the company that owns it: http://www.pacificacompanies.com. I presume they bought a basket of notes from a bank? Does anyone have experience with acquiring foreclosed properties from such firms? Is it a quick process? I bid 45 cash. Property is listed at 75 ( down from 100). It's been on the mkt for 150 days

I'm a fan of Flip or Flop. Staged to a certain extent, but still good.

@Marc Ramsay

Check out http://sellerspmdivision.com/

They are local and typically service lower-income properties. Mostly SFR, but may have insights into MF.

Originally posted by @Joe Fairless:

@Zoran M. - I'd ask the investor what are the ways they are currently acquiring properties (vs. in the past). I'd also ask what can I do to help them out with their business. And then I'd make it a point to add value to their life.

@Joe Fairless Your last point is interesting. Is it appropriate to offer any investor my assistance in our first meeting? As eager as I am, I don't have much to offer other than hard work.

I was considering getting my first deal done on my own so as to establish a track record, and then reaching out to others about partnerships, assistance, etc.

Thanks!

Hi all –

I'm a new investor and am in the process of securing private financing and establishing an LLC. I've seen quite a few REOs already and will be placing bids once my LLC is established just after year-end.

In the meantime, I’ve been reaching out** to local buy-to-hold investors and have tentatively scheduled a meeting with an individual who owns 600+ single family rental properties and a handful of apartment complexes.

While I have a laundry list of questions I’d like to ask him, I wanted to see if the BP community had any questions they want answered? If it’s okay with the investor, I will post his responses after we meet.

** I see a lot of "seeking a mentor" posts on BP. While this is a great community, there are plenty more investors out there than just those on this site. Do a Google search. Check out LinkedIn. Scan local newspaper articles. Find a name and offer to take them to coffee/lunch for a chance to pick their brain. You'd be surprised how often people are willing to share their wisdom.

Rental properties in Shaker, University and Cleveland Hts are also good investments with strong tenants. Depends on the street, esp in UH and CH. Lots of incoming doctors from CC and University Hospital look for rentals there in the springtime.

Originally posted by @Chris Adams:

I would really like more details on the property to give you advice. 250+ Dom is usually a sign of serious issues with a property, investors won't let good properties sit that long.

If you can supply details like purchase price, rehab cost, ARV, time frame to rehab and so on we can give you better advice.

Are you nervous about unknowns, or because your using family money?

Figure out what the worst case scenario is with this flip and how you will handle that if it becomes reality.

Tell us specifics, generalizations will not help us help you.

I’m nervous about the unknowns and borrowing a family members money. Here are the details:

The home is currently on the market for $60K after being listed 250+ days ago for about $100K. There is a large crack in the foundation that will require 56 linear feet of excavation around the property, costing me $6,800. This is the biggest issue with the home and what has likely held back most buyers. Here are the numbers:

ARV: $115,000 - $125,000

Rehab Costs: $30K - $41K

Holding Costs: $2.5K

Selling Costs: $11K

Ideal acq. Cost: $35-40K

1,700 sq. ft., 3 bed and 1.5 bath (which is small for the neighborhood)

4-6 week rehab timeframe. Estimated time on market 3-6 months.

Most of the interior work is simple. Open the kitchen into the living room; expand 1st floor bathroom into closet; refinish floors; paint; etc.

The neighborhood is great and I live just a few blocks away from the property.

Over the last several months I’ve read over countless posts in this forum, dug into J Scott’s books and listened to just about every BP podcasts. Each has been a tremendous resource in my goal of acquiring and flipping my first investment property.

As it stands today, I received a sizeable cash infusion from a private investor. I have seen numerous properties and have narrowed my search down to a single REO that's been on the market for 250+ days. I had a GC come out and quote the property. Numbers make sense and it should yield a 25-30% cash-on-cash return. My wife is on board and is supportive.

All is well? Sure! No!

I’m quite nervous. I was given a large investment by a family member and all he said was “don’t lose my money.” No interest. No profit split. He just wants to help me out. Well, the numbers make sense so I don’t expect to squander his investment. But alas, so much can go wrong during the process.

The funny thing is I’ve invested sums bigger than this in the stock market, but what made me comfortable in doing so was being able to exit the investment in a literal nanosecond. This is, if I’m lucky, a 3-6 month investment.

Any advice? How did you feel before/during/after your first flip?

Originally posted by Bill Gulley:

Originally posted by @Zoran Miling:

Thanks for all of the replies! To be clear, the investor is a family member.
I'll look over the responses more closely to see which one suits me best and will follow up with any additional questions.

Might look to profiles of posters too, might get an indication of who you might rely on, do your due diligence.

Saying family member isn't definite enough in legal aspects, a third cousin or "immediate family" member, mother, father, sister, brother are going to be exempt lenders. :)

Thanks for the tip, @BillGulley. The family member is my uncle.

Thanks for all of the replies! To be clear, the investor is a family member.

I'll look over the responses more closely to see which one suits me best and will follow up with any additional questions.