All Forum Posts by: Seth Williams

Andrew H., this kind of analysis doesn't have to be complicated. Just calculate what the monthly payments of both loans will be. Once you know the combined monthly expense of both loans, factor it into your monthly income statement (revenue minus expenses).

I think it ultimately comes down to what your goal is. Are you trying to get the highest possible cash on cash return? Or are you looking for the highest possible cash flow? The two don't always go hand-in-hand. Whatever your priority is should direct you on what kind of analysis you should be doing.

Same in Michigan. A property manager essentially needs to be a licensed real estate agent (because they are effectively selling housing on behalf of the owner).

Hey Sean D, determining the value of vacant land is MUCH more an art than it is a science. The construction industry has a lot to do with it, because if people aren't building, residential lots are much less attractive to buyers in general. I would agree with Bruce Norris that most vacant parcels are extremely undervalued right now, but that's only under the assumption that you're willing to hang onto them until the construction industry really starts moving again.

I take a similar approach to Raquel Baranow. There are a number of things I look at:

- What are the asking prices for similar properties in the area (this gives you an idea for what your competition is once you try to sell).

- What is the assessed/taxable value of the property (this can actually be a very unreliable number - so I wouldn't put too much weight on this... but it can at least give you a starting point)

- I call a few realtors in the area and ask for their honest answer to this question: "If you had to get this lot sold within 6 months, what would be an appropriate asking price?"

There are other factors to consider as well:

- What utilities are available to this property?
- Does this property have clear road access? Is the road paved or dirt?
- Does this property perc? Is it possible to install a septic system if needed?
- What kinds of building restrictions are there on this property?
- What kinds of holding cost (taxes, HOA fees, etc.) are required to hang onto this property?

As you can see, there are several things to consider - hopefully this gives you some ideas on how to come up with an appropriate value.

Some things I've found helpful are:

- Posting on websites like www.postlets.com (this website syndicates out to much larger networks like Zillow and Trulia)

- Posting in multiple cities on Craigslist, Backpage & Kijiji

- Offering Seller Financing (whenever it's possible and practical)

- Providing Virtual Tours of the property whenever possible.

If you provide good information in your listings and then blast them out to as many outlets as possible (Postlets is great for this, btw), you'll get a lot more traffic.

Arnold Komitzky, why exactly was the borrower's credit score in the 600 range? This number by itself is just a broad reflection of what the situation is - but it doesn't explain what's going on.

Did the borrower miss a few credit card payments? Was it a medical collection? Missed mortgage payments? Foreclosure from 5 years ago? Whenever I see issues on a credit report, I always ask for the back story. If the borrower expects me to get overlook their potential credit issues - they'd better give me a compelling reason as to WHY.

Depending on what the overall situation looks like, you might consider asking for a larger down payment or charging them a higher interest rate. I generally charge the maximum allowable interest rate on all of my seller financed deals regardless of the situation (and the borrower is usually more than happy to pay it).

Anthony B. - unfortunately, I have to deal with the same level of ignorance at a lot of title companies here in Michigan. It's not illegal here - but there is a serious lack of understanding about the process, and what people can and can't do.

A lot of banks and title companies will prohibit double-closings and assignments because they know exactly what is going on - you're getting a HUGE pay day from the process and they don't like it.

In my experience, assigning a contract becomes more difficult once banks get involved, because banks don't want to finance your assignment fee (and they generally don't want their borrower to be paying your assignment fee either).

When it's a cash transaction, the process is much easier. This is part of why having a list of cash buyers is so valuable... because it de-clutters the process and allows you to assign contracts MUCH easier.

AgentPro247.com might have some of this information. I've used it for years now, and while I don't use the service for precisely what you're describing above, I know it does give you access to a TON of data, all of which is fairly easy to search.

Last I checked - I believe they offered a free trial, so I'd suggest starting with that. If turns out to be what you're looking for, you can get a discount by entering Partner ID: CFGRSH on the sign-up sheet.

Justin Morris, not all strategies require a massive slush fund of cash in order to start doing deals.

When I got serious about real estate investing about 5 years ago, I paid $331 for my first property and sold it 2 weeks later for $4,000. A month later, I bought another property for $150 and sold it for $7,000 within 10 days. Repeat this process a few times, and it doesn't take long to build up your cash reserves.

As crazy as it may sound, deals like this aren't unique. On average, I get about 20 ridiculously motivated sellers contacting me every week. It's to the point where I don't even know what to do with the number of leads I get.

I'd say your first priority is to find motivated sellers, and A LOT of them. Build up a system that brings in more leads than you know what to do with... this will allow you to pick and choose the best deals and not compromise.

There are a lot of ways to get sellers calling you, here are several examples: http://www.biggerpockets.com/forums/93/topics/76751-finding-motivated-sellers-my-list

Personally, I've found direct mail to be particularly effective, especially when mailing to a targeted list. This is actually a HUGE subject (way too big for one post), but let me know if you need help. I can give you a few pointers.

Huggy Baird, try putting a link to your blog in your signature and profile.

...but even more important than that, I've found it also helps if you get involved in this forum on a regular and ongoing basis. Help people whenever you can. Offer valuable feedback. Ask questions that help others. Motivate other people to take action. The more you can connect with other investors on a meaningful level, the more likely they are to show an interest in you as well.

My first rental property was a duplex. I chose multi-unit because the idea of having twice the rental income with only one yard, one roof, one driveway, etc. really appealed to me (and it HAS indeed, proven to be awesome).

I also got inspired by Ken McElroy's book "The ABC's of Real Estate Investing" (which is a great read, btw). Where he really gets into the details about multi-unit properties are so powerful.