All Forum Posts by: Michael Williams

I am looking forward to THIS event!!

Looking to work that area I may have an investor interested what are the numbers. 

I've negotiated the price,have a buyer ready, put the contract in the hands of the son of the owners and the father, who is on the deed with his wife, passed away 5 days ago There is no will. Where does this put my contract? Do I have a certain number of days to get the deal done or is it on hold until probate? I am in Memphis Tennessee.

Son is NOT on the deed. 

The mother has given her son permission to sell to me. Does he need a power of Attorney? 

He is also open to a payment plan where I can pay him $XX down and monthly for the rest. Any pointers and advice.  I really have the option to hold with owner financing or flip to a buyer.   

@Mike M. Quick Question: 

So if the seller waives his $16k lump sum  and I reduce my fee to $5k, using your calculations that would put profits for buyer at $25k. If the rehab number is accurate and this was presented to you would you buy it then? 

I had a buyer contact me for something in the $120k+ range and less than $50k repair range. Although this looks like it fits that criteria all of the other parts kill that for this investor. 

@Ray A Delfi Thanks for the breakdown. The 70% rule at work. I will be passing on this one. 

@Don Konipol Thank you for the complete breakdown and ALL cost required for a "Deal" like this. I am here to learn and I just got some high dollar schooling. 

I was going to pay for a title search after getting it under contract. 

I was going to suggest that he get paid his $16k over 3 years. He would have taken it because he is highly motivated but according to the responses here, it may still be a hard sell for a savvy investor. 

Thank you bigger pockets. 

The seller is open to creative financing. He has two mortgages on this house that total $103k, he wants to pocket $16 after the deal. I had my realtor run an analysis and the ARV is $182k. He's had the mortgage for 15 years. The first 10 years he paid Interest Only. The next 5 he paid principle and interest. The 2 payments together are $1,200 per month.

My eyeball estimate is $25-$30k repairs.

The first mortgage is $20,119.23

Maturity Date – 02/2021

Interest Rate – 9.625%

The second Mortgage is $83,287.30

Maturity Date – 02/2036

Interest Rate – (until 03/2020) 4.5%

Work:

The bathrooms need to be upgraded and painted. Carpet needs to be removed from 3 rooms and on stairs to the second level. New flooring in living room, Upgrade on the kitchen will include new appliances, upgrade countertops, paint, and floor tiles. There's a Laundry room a master suite with a walk-in closet. There is a kitchen upstairs and stair asset to the upper level from the driveway. Possible inlaw suite or rental.  The entire house needs paint inside and out plus landscaping. Plumbing and roof in good condition. Two HVAC units.

My eyeball estimate is $25-$30k repairs. This is a wholesale deal. 

Need suggestions of how to write this up for an investor? As an investor that wants to buy this deal how would YOU approach this? Example: Pay the seller his $16k, pay off the 1st

and second mortgages to refinance, rehab it with 30K, pay a lower rate and interest after refi while you cashflow with a $1500 month renter?

How would you do it? 

Recap: 

Mortgage 1st and 2nd mortgage totaling $103k with Chase

Owner wants to pocket $16k

Estimated $25-30k rehab

Seller open to Owner finance and other strategies

My wholesale fee $10k

Realtor estimate: ARV $182K

B neighborhood

Vintages homes

1 mile from Cooper-Young District in Memphis

1 mile from University Of Memphis and the Liberty Bowl Football Stadium

2 miles from downtown Memphis and FedEx Forum

I came across an FSBO sign while driving for dollars. I called the seller and set up an appointment. He is a veteran that is a tired landlord. He has a 2,896 square ft house with 4 bedrooms 3 1/2 baths, A great room, one car garage, a huge kitchen, a dining room, a laundry room, huge bedrooms, a fenced-in backyard, and a kitchen upstairs. It has outside stairs leading from the driveway to the upper level that makes it an idea for a paying tenant.

The seller is open to creative financing. He has a mortgage of $103k, he wants to pocket $16k after the deal. I had my realtor run an analysis and the ARV is $173k. He's had the mortgage for 15 years (Interest Only Loan). 

Work:
The bathrooms have old white tiles from the 60's so they will need to be upgraded and painted. Popcorn ceiling needs to be removed in 3 rooms. Carpet needs to be removed from 3 rooms and on stairs to the second level. Upgrade on the kitchen will include new appliances, upgrade countertops, paint, and floor tiles. There's a Laundry room a master suite with a walk-in closet. The entire house needs paint and landscaping. Plumbing and roof in good condition. Electrical unsure. Two HVAC units. 

My eyeball estimate is $25-$30k repairs. Will bring in contractor friend later to do a more accurate estimate.   
This is a flip to another investor. 

Anyone have some pointers on the best way to approach this deal. 

Recap: 

Mortgage $103k with Chase
Owner wants to pocket $16k
Estimated $25-30k rehab
Seller open to Owner finance and other strategies
My wholesale fee $10k
Realtor estimate: ARV $173K
B neighborhood
Vintages homes
1 mile from Cooper-Young District in Memphis
1 mile from University Of Memphis Football Stadium 
2 miles from downtown Memphis and FedEx Forum

 Actually those are not HEDGE FUNDS they are management companies. I have an international Hedge Fund I may be working with once Ido my due diligence on them. There are also major players from Atlanta I work with. I want to get more detail on arrangement before I name them.