All Forum Posts by: Paul Sorgi

Sounds like a unique home and unique homes require unique buyers. Have you had any interest? offers? You could lower your price. You could hold an open house for Brokers and then explain your compensation to them. You could raise the percent paid to a realtor to 3.5%. But I believe if you have had no calls then lower the price.

Thom you could also partner with some one with money or seek private money.

1. You could JV with someone like a contractor
2. You could find a Private lender who would lend you the 15 to 30k
3. You could sell as is with seller financing
4. You could use a Hard money lender
5. Borrow against your 401k if you have one to borrow against
6. If it's not in that bad of shape you could get a HELOC from a bank.
7. You could sell it to a rehabber

Samson Kay everybody has to start somewhere. I think the important thing to remember is to set your investing guidelines. If you are looking to wholesale or rehab then 70% or 65% of ARV minus repairs is a common formula. Stick to it and make your offers based on those numbers. The worst thing a seller can say is no. Good luck investing and maybe I'll see you at a meeting or 2!

Leaving $400 on the table is not a big deal. The other side of the coin is he can use the inspectors findings to renegotiate the price.

Sounds like a fixer upper and if your friend is unfamiliar with repairs and the associated costs he may want to look for a property that needs "no" work something that may have just been rehabbed.

FYI when you look at some REOs that have been winterized it is the buyers responsibility to pay to have the power turned on, the home dewinterized then winterized again if you want the systems inspected.

Arcinio Arauz you presented your numbers and people gave many solutions to your presentation and "No Deal" was the winner.

What do you think your next step is?

I would just go work on finding a deal worth doing.

30 years is a long time for an 82 yo. I also think overpaying 250k for 5 houses is a mistake.

What is her biggest concern the total payout? or the monthly payments?

Even your additional payments every 5 yrs is a long time for an 82 yo.

How did you determine a market value of 350k and how did she decide it is 600k?

Is the income of 3025 gross or net?

I use a GRM of 8 which values the properties at 290k. So for starters 350k to me is overpriced. Second if your paying her 2070 per month and income is 3025-890=2135 Net where is your profit?

How would you come up with the additional 25k payments?

I assume each house would be deeded separately and I would recommend separate notes and mortgages to make it your exit strategy easier.

But as presented I don't see a deal here.

I might be attending. It is 50/50 right now.

What are the comps?

What is the rent?

What are the expenses?

If the numbers work you could get it under contract and assign it to a rehabber or buy and hold investor.

Great job Charles Kuchlenz for taking action!