All Forum Posts by: Nuhan Demirkan

If you do not have a signed agreement with the wholesaler on this property, he does not have an equitable interest to sell or assign. So you have no obligation to him. Call your contact at ABC and ask if they want to buy the property at the price you want. If not move on to the next buyer. If the ABC company wants to compensate the wholesaler they can do it but that should not effect your deal with ABC.

Kevin, Sam Zell is 74 years old. If you start in your 30's and invest wisely. And move up from single family to multi family to mix use to malls and developments. And hold most of the properties, you will be worth a pretty penny too. If that's what you want to do...

Good luck

Agree with Jd. That being said: 

Cons - hard money is expensive, for short term use

Pros - Dealing with a person who understands your business, not a bank. May qualify easier.

Jd Martin

Jd Martin

Also take the neighborhood into consideration. Do the rest of the houses have master bed/bath configuration? If not you may not get the value you're looking for. Building a bathroom is not cheap.

LLC's are for asset protection. If you are starting out the bank probably will not lend to and LLC without you being also on the loan. But that does not matter. The properties you buy needs to be in the LLC name for protection from law suits, etc. Credit score is important but also the income. The bank is looking for the ability to pay back.

If you are putting 45% down I hope you can cash flow. Otherwise you did not buy right. I think the question needs to be will I get enough return on my money. I would make sure that there is no early payment penalty on the note. Hold it for couple of years and do a re-fi to get out of the 8.25%. You may even pull out some of your cash out to do another deal.

No, in most cases the leases stay as is. Read the lease to see if there is a sales clause. If not, you have to buy with the lease in place.

Sagar, without getting too deep into the numbers I can see the advertised cap rate (which is always bogus) is 5.86%. If you think investing $700K to make $39K is an acceptable return then go for it. I need to make more than that. My buy price would be around $200K - $250K.

John, remember, you make your money when you buy the real estate. Is $120K a good price or is it market value? I buy at 50% of after repair value. After the rehab I usually have around 30% equity so I don't worry about the market too much. As long as you buy right and the property has strong cash flow I would say do it now don't wait for the what if's.

Good luck

I would suggest moving into properties that do not need repairs. When you are ready to move out you can either rent or sell. You just have make sure you get a good deal upfront.