All Forum Posts by: Ray Rhoads

It’s a great deal. I have everything, Leases, cap, I know the area, I have projections, I have everything about why this is a great deal(Long term owner-managers).... if I had the money(or partners/investors) to buy it, I would. Wholesaling it is a way for me to get it without putting money in. Assigning the contract Is the preferred method, but how mucy?

Ok, need advice! This will be my first deal! 

I have a 9 unit apartment building under contract and want to assign the contract to a buyer. In all the books, articles, and podcasts Ive read/heard they make it sound so simple, but it’s all worded differently...some say to take your assignment fee up front so the buyer can’t walk away, some say you get it at closing, and some say it’s the difference in price that the buyer buys it at compared to what you have it under contract for.... But I have questions!

1.) how do you determine the assignment fee? And when do you get it? I want to spend no money here. 

2.) what happens if the buyer doesn’t close? How do you protect yourself if this happens?

thanks!!!! I’m sure ill Have more questions after. Haha 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $90,000
Cash invested: $14,500

Purchased a 2/2 Condo in Plantation, walking distance to a high end Shopping Plaza.
Owner didnt want to rent it, but couldnt sell it when she moved because the value dropped.
She rented it for 6 years, when the tenant moved out, she put it for sale by owner. I texted her immediately.
negotiated from $105,000 to $90,000. ARV is about $125,000-130,000.

The plan is to move in to it, fix it up over time, and move out, and rent it out with the LOW PITI/HOA.

What made you interested in investing in this type of deal?

Location and ease of management.

How did you find this deal and how did you negotiate it?

I found it on Zillow i believe 1 hour after it was posted as a FSBO. I immediately texted the seller and began negotiations. After visiting the property with a General Contractor, I asked for $95,000. The seller accepted. After visiting the property again, we got the price down to $90,000 due to ALOT of cosmetic needs. I think negotiating DIRECTLY with the seller was a big asset.

How did you finance this deal?

5% down. We are moving in for a year or so and will fix it up over time since most of the work is cosmetic. Once we move in, our current Condo will rent for $1600, and will cash flow $312/mo after PITI + HOA + Management. Then we will move out and make about $400/mo of this one.

How did you add value to the deal?

Tons of cosmetic stuff.
New Tile in Bedrooms.
New Paint.
New Details like vents, outlets, etc.
New Dishwasher and fridge.
A little electrical work.

What was the outcome?

Moving in!!

Lessons learned? Challenges?

No REAL challenges. Just moving forward!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I ALWAYS work with the same Lender, Ryan Beck from APR Mortgage for refinancing and now buying.

@Frank Rolfe thank you so much for taking the time to respond and help!

I am talking to an owner that will owner finance 100% of a small 20 unit MHP, that also has 3 commercial buildings(one is leased).

Problems:

16 MH sites occupied and PARK-OWNED. From everything I’ve read it seems wise to see if I can get the tenants To own these homes through rent to to own or gifting.

The sellers business would then be way different than mine and therefore value the different differently right? This park has been on the market for over a year.

How would I go about valuing this property while also understand he is going to finance the whole thing for me.

Thanks for any help!

I found a 396-unit condominium building ON the beach in South Florida that needs a TON of work. However, once rehabbed or redeveloped, it’s in a massively up and coming area(not the up and coming area that’s gross, the kind that’s there), and will be a tremendously profitable investment. 

First how do you go about buying a CONDO complex? I understand apartments pretty well, but the condo owners own there home so I was curious how that works.

I found a Duplex that 3/2 on both sides in a great school area.... great deal. However it’s a Modular home.

To get my money back to go buy another property, I was going to fix it, rent it, Refinance

It and have heard that refinancing a Modular home will be difficult. Yet others have said as long as the bank knows its a modular home and not a mobile home it’ll appraise. 🤷‍♂️

Anyone have experience with this??

Thanks!

Just a curious newbie here:

I found an off-market deal, guy is selling a triplex for $260,000, and it brings in $3700/Mo. He’s also going to put on a new Roof before I buy.

I am self-employed so I have been trying to avoid the bank, through seller-financing.

This guy says he offers seller-financing:

1. Down Payment must be at least 25%

2. “Max 5 Year Balloon Loan”

My question is what’s a 5 year balloon loan?

Thanks everyone that helps!

I am self-employed and cannot get ore-approved. I may have a partner who is willing to put the down payment up for me.... Question 1: how have some of you structured these deals? Question 2: how do I get the house in my name after he buys it without a pre-approval for a loan? Thanks!

I’m looking for an agent that can help me START my investing career in Broward County. If anyone on hear has any connections, I’d be grateful. The people I’ve interviewed and talked too so far are seemingly being taught about a 203k Loan by me, I want to learn from them! Lol Thanks in advance. Ray