All Forum Posts by: Katrina P.

Hi everyone,

I wasn't sure whether to put this one in the buying and selling forum, or creative financing. I've located a package deal that has 5 properties for asking price of $85k. The gross rents are approximately $3k/mo. All are single families, so landlord pays no utilities. The owner has a mortgage on 3 of the properties, which I assume he's trying to get out of (not sure if he's trying to also make a profit on them or not, but likely so; he's not interested in a short sale). The other two are free and clear, and he says he'll accept a land contract on those...

So please help me figure out how to put together an offer on this one, and how do I finance it? Should I try hard money for the whole package and offer him less for the whole package since he'll be getting cash? Or do I try to work out a LC with the two free and clear, and conventional finance the other 3? Also, what questions should I ask him? My brain feels kind of fried right now, so I need help thinking through this one.

Please help.

Katrina

What an awesome idea, J. Scott! Like many others, I am very interested in being mentored, if someone is willing and in the Baltimore, MD area. Last year, hubby and I did our first flip, where we lost a lot of money, and ever since, I've been very nervous about jumping back in there. If anyone's in the Baltimore area, and would like a Mentee. Please reach out!!

Thanks, Wayne. I'm not sure I want the other properties...still talking with the hubby about that one. One major thing is that one of them were misrepresented (I was told there were 2 bedrooms in each side of duplex), but come to find out, the upstairs is a studio, and downstairs is a 1-bedroom. This is a different property, btw.

Thanks for the replies, guys. No, there are no inspection or other contingencies..I've waived them (stupido, I know). Regarding seller maintaining the current condition, it states this:

"Possession: Seller will maintain the property in its present condition until the completion of the closing of the sale. Possession to be delivered to Buyer, subject to rights of present tenants. if any.
X At the completion of the closing of the sale."

So, if I walk, I know I'll lose the relationship, which sucks. But I just don't know that I want to go through with this. Can they sue me? Or does the fact that one of the properties has not been "maintained in its present condition" excuse me?

Hey BP:

I recently signed a PA to purchase a package of properties from a bank, where they would be financing the deal. The deal is "as-is", but since my signing, there's been material changes to at least one of the properties, which is making me re-think the whole thing. One change is that I received an email from the Agent that said they got word there was a" 'Water issue' happening at the property, where water was exiting one of the units (duplex), and the city turned off the water, but it appears the tenant disconnected the meter, and the pipes have frozen". The property is not on a lockbox at this time, so I don't even know the extent of the damage. They're supposed to give me access today or tomorrow, but they are unwilling to offer a concession for this extra damage. There are other issues as well. But my question is, if I decided to walk, what can they do? I have not submitted a deposit either.

Thanks in advance for all input.

Still learning a great deal, and dealing with some serious growing pains right now, unfortunately :(.

Thanks,

Katrina

Hello everyone and THANK YOU for all responses. They were helpful, as always. Anyways, I decided to send the guy a letter to introduce myself as the "Property Manager" for the owners who are taking over as of January 31st. I sent him an application, and asked if he could have it in by January 31st, as we will begin our management duties as of February 1st. I know he may or may not adhere to this request since technically he doesn't have to since we don't yet own the property.

But to those that asked about the price, it's a duplex (3 bedrooms on each side) that I'm getting for about $10k. It shouldn't require more than $5k to get it up-to-snuff, and I can rent it out for $600 each side, and utilities are completely separated (besides water), so I'd say it was a pretty good deal.

I'll keep you guys posted with how this thing pans out, but any additional comments are always welcome!

Katrina

Joel Owens
You use this software every time you are analyzing a buy-and-hold? With regards to the free tools in the BP vault, what are you referring to that you would have to keep redoing besides entering info for each prospective property? I'm just wondering what you mean, as I am beginning to analyze potential deals, myself...just want to locate the best software for me, since as a fairly newby, not exactly sure of everything I should be looking for in a software.

Mark Spivey
This looks phenomenal!! It worked for a minute, but I have to figure out this macros business :(. I LOVE it! I will use it for every analysis from now on (once I can open it again lol)

Katrina

BP Family:

Here's the particulars:

2 homes sold as package for $30k

1st home:
Duplex (4bd/1ba downstairs, 1bd/1ba downstairs)
-The 4 bedroom is rented til 06/2013 for $700 per month
- The 1 bedroom is month-to-month and has been rented since 2010 for $375,

2nd home (directly in back of the first on the same lot):
-1 bd/1ba
-Leased til 11/2013 for $400 per month.

Other things to consider:

The seller will consider a land contract with substantial down payment. Insurance is a blanket coverage with other properties and is $550 per year. Utilities are $450 per month and taxes are $1919 per year. Currently two years behind in taxes, totalling around $5k. The properties have been listed for around a year. I'm interested, but want to know the thoughts of those who are more experienced? What other information am I missing/should I be asking?

Thanks in advance!

Katrina

Hello BP Family!

Okay, so I am in the process of acquiring a property from a bank, that currently has a squatter inside. Apparently this guy used to pay rent until the previous owner lost the property to the bank, and the bank wouldn't make any repairs, so the tenant used opportunity to avoid rent until the new owner takes over. There is no lease in place. I will be closing on 1/31, but I would like to get the process started asap. The property is in Michigan. I have spoken to the tenant once, and he stated that he'd like to stay there, as he's been there for 3.5 years, and he loves the house, but it's just that "some things need to be fixed". Of course, I plan to make some improvements, but I have tried to reach out to the guy several times since I first spoke to him, and he has not answered my call or returned it. At this point, I do not want to rent to him. So what's the best way to get this process started? Should I write him a letter to get the ball rolling since I don't technically own the property yet? Or should I just wait until I close, and begin the eviction process? Also, should I just do a 30-day notice to quit?

Finally, my last question is this...I was told that in the state of Michigan, if your properties are owned in the name of an LLC, then you need to hire a lawyer for all evictions. Does anyone in the state of Michigan know if this is absolutely true?

Thanks in advance for all the help guys!

Katrina