All Forum Posts by: Nick Furlough

I need to get $135k out of this property to break even. My buyers can only get approved for $127k. They are willing to pay the $135k just have no means to do so. They have tried to gift, borrow, up the mortage and nothing works. I really need to get this property moved. What are my options? Can they sign a promissory note for $8k and not disclose to the bank? I dont want to lose this deal over 8K but my original asking price was $159K. I have no more room to move. Any advice is greatly appreciated.
Holding costs are $600/mo

Thanks!

Nick

We closed on the property Sept 17th and worked all weekend long at the new house. We have made a ton a progress in just 24 hours. Things are looking really good we already have two potential buyers just by word of mouth. I'll keep things posted. Thanks everyone for the help!

Rehab and REI,

Thank you guys for the info. It's nice to have guys like you generously offer your free advice to us newbies. We have researched and waited a long time to find our first deal to give us a solid foundation.

I have just found out that another seasoned investor in my town had placed a final bid of 6500 on this same property. He thinks my numbers are good and believes we can sell in the 150's with only 15k to 20k max into it. So that gives me a good feeling on our first property.

I will post the progress on our first deal as it develops. We talked to the realtor today and it will be possible to close earlier than what we expected. Thanks again for all of your input. Any information is greatly appreciated.

Nick

Nick

Thanks for the input. No we are not paying anything for the loan he is just helping us get started. He was given the same type of opportunity to start his business when he was younger and became very successful. He wanted to do the same for us. I will definitely get in touch with a tax pro to find out about the imputed interest. I do not want to get him in trouble for being so generous. It took me a while to find a deal like this and I think we have a great opportunity to make a good deal of money on this one.

What kind of reserves would you recommend having for other deals since we are just starting out? I know we will probably have to put in around 20% out of pocket since we are a new company and because of the new credit crunch although we have FICO scores in the mid 700's. We are thinking of doing a few more fixer uppers before venturing off into the rental business to get our capital up.

First time poster here. I am new to real estate investing and I have two partners that I am going into business with. We are currently submitting for an LLC. I have a really good family friend that is helping us get started in the business and is bankrolling us for our first project. We are closing on a 3br/2ba house Sept 17 that was in foreclosure. We won the bid at $67,500 and are looking to put in 10k-12k into it (nothing major wrong with structure). My partners are in construction so we will do the majority of the work to maximize our profit on this first deal. Comps in the area have just sold from $149k to $163k in the last 3 weeks. For our lender we just have to pay him back no interest added just the money we use to fix up the house. My question is do we try to list it lower for a quick sale and move to the next deal or list it in the $155k range to maximize profits? We want to get into the rehab/rental business and create some positive cash flow. This will be the only start up capital we will have is what we make off of this property. I was thinking at listing in the $129 range so we can move on but it is nice not having to pay any interest while it is on the market. Any advice is greatly appreciated. Sorry for the long post but wanted to give as much info as possible. Thanks

Nick