All Forum Posts by: Angelo Mart

Call mortgage broker if you have one

Welcome ....Best of luck in your investment business

Case Study:

I found a property located in a very wealthy area (Red Bank) that is an estate sale with highly motivated sellers that is being sold in "AS IS" condition. The sellers (of estate) need to push this property fast and just reduced the price from $520,000 down to $405,000 and wont really budge as they have to pay a REVERSE mortgage off. I have reviewed and verified three recently closed homes on the same street that were completely renovated but were similar in terms of size (within 200 Sq.Ft.) room count and lot size (as per city assessor) to this property. One sale was at $590,000, $625,000, $700,000 and the house next door sold at $665,000. My estimated cost to cure/repairs is estimated at $60,000. I am going to utilize transactional funding for this deal as it seems the best solution for wholesaling. I offered $360,000 and they laughed at me!!! What is the most I Should pay for this property as I want to make a minimum of $12,000 on the deal. If I estimated the house at $665,000 (most similar comp) and use the formula of 65% of that would be $432,250 - $60,000 - $12,000 = $360,250. However, an investor (rehabber) friend of mine in the area says that his company does not do a deal unless they make a minimum of $90,000. In this case they could make ALMOST $150,000-$200,000 even it if pay full price of $405,000 as the formula does not appear to be consistent in this high end market. Somebody PLEASE help me to structure this deal, I don't want lose it. THANKS BP

@Account Closed Thanks for the help. I looked at the property today and She said for me to come to her office tomorrow to send offer in. I told her it would be a cash offer, she then proceeded to tell me that I need to put a $1,000 earnest deposit and show proof of funds. I don't understand why she would say that is this is NOT an REO or Short sale. Also, should I start calling investors even though I don't have contract locked in yet?

@Account Closed thanks! Since it's my first deal and I'm not having the listing agent represent me also as my buyers agent (she will get paid on both side) how do I even submit the offer since it's a wholesale. Should I have my attorney state clauses in the contract before we send it to seller?

So I found a 2-Family property located in a neighborhood that my investors buy property. The property has been listed on the mls for less than 1day and is a distressed property in need of rehab that is owned by an elderly man and is NOT an REO or short sale but is located in an area with plenty of short sales. Here is my problem, the owner states that he will be responsible for removing the underground oil tank. The agent told me to get as close to the $95,000 list price as possible as the owner will need money to remove the tank. My estimated repairs are approximately $25,000 -$ 30,000 however, my comps in the neighborhood range from $165,000 - $260,000 depending on the extend of renovations and other typical appraisal adjustments. Most of the comps are around $185,000 but a very few that have extensive rehab in the area closed at $260,000. These comps are similar in size and appeal. So what do I do when determining ARV? Use conservative comp @ $185,000 or the few lingering comps @ $260,000. Similar distressed comps in this area range from $60,000 - $120,000 depending on extent of repairs and type of sale (Reo,short,etc). What the heck do I do now as I am going to look at the property tomorrow and need to make an appropriate offer? What should my ARV formula reflect? This could be my first potential wholesale deal and I pray that it works out. Thanks BP

This had worked before? That's awesome news for me....Did you have your LLC in the property name? Should I have my attorney set that up?

@Bryan L. Thanks for the input...Time to start working on this!

@Bryan L. As I have mentioned earlier, I am a certified real estate appraiser with access to the MLS, tax records, deeds, flood maps, etc, etc and probably more stuff than the majority of incompetent realtors in my area. I have full knowledge of how to use the mls unlike realtors I have met that we're serving food at a restaurant full time until they decided to obtain a real estate license thinking they can get rich overnight. I scan the mls everyday for good deals and have "Cash Investors" ready to purchase. In addition, I don't need a buyers agent as I do the research myself and can call the listing agent which doubles their commission by cutting out the middle man (buyers agent) out. All I need is my attorney at this point right?

@James Wise This specific investor wanted strictly multi-family dwellings to hold for long term. This Could be for Section 8 and SRAP tenants if you are familiar with that. 

@Bryan L. How does becoming a realtor beat the competition?