All Forum Posts by: Ryan Herald

I have a performing note that I am willing to sale discounted, I do not know where though.  I looked at the BP marketplace, but that forum doesn't really look made for this. I have looked online, but I am not sure how trustworthy the places I have found are. What do you use to buy or sell from? Thank you.

Info on the loan: 45k still owed at 5% and ten years remaining with a property that has a value of around 70k. The note has been performing without issue for the last year and a half to two years, so I hope it has seasoned well enough. I would like to get 38k cash for it. Would that be reasonable?

Hi Matt, I hate that I missed the last meeting, especially since I was in the area at that time. I am looking to move that way and would love to attend the next meeting. Could you tell me when the next meeting is? Thank you.

There are several ways that people do it. The area, neighborhood and market you're in will influence your method. What I do is Net Profit = Net Rent - (PITI+(averaged expected vacancy and upkeep costs))

State laws vary wildly. The last place you want to get a contract is from some online vendor. Now is the time to start looking for a good lawyer.

I personally don't do that. I feel that a letter or number designation is too ambiguous. I also live in the market I invest in. For property determination, the two main things I look at is potential cash flow and neighborhood quality (will I get stabbed if I were to check my mail at night, etc). If the neighborhood is nice and the cash flow looks good, I go from there.

Yes you can, but QDs do not come with title insurance. You'll want to do your research first before doing that.

No. Keep it simple. The longer the letter the less likely it will be read. Tell the seller you can buy it for a fair price. You dont need to tell them your methods in the letter. The letter is to tell them you want to buy the place, nothing else. Once the seller calls you, then you can mention that you use a lender and give an estimated amount of time.

That's a big question. Are you asking for flipping or buy and hold? In  either case, I would include all expenses.

Hi Victor, thank you for cautioning me on this. While I do have some experience, I know it doesn't compare to yours, so I do appreciate you chiming in.

With a few new discussions, I doubt I will be putting anywhere near what I posted down. I have a relative who is a commercial lender for the area also overlooking it, and he'll have valuable input. With the seller's records and my advisors, this is a deal that will be measured and known before I take it. Or at least as known, as can be expected. 

@Gino Barbara was actually kind enough to take some of his time to talk with me in the recent past. I believe he sent me the book you're reffering too.

Hi Victor. Thanks for your post. Though we have not met, I know you are thought well of in the Knoxville area. With that said, I will have to disagree with what you have assumed (though you were limited to only the few scraps of info I have posted). 

These properties are not in Knoxville or even the Knox metro area and thus have a significantly different market.  A nice 3 bed home in Knoxville may rent for as much as $1200, in this area a 3 bed in a good neighborhood is a round $700-750. Extras and improvements may push for a higher rent, but not enough to really justify them. This happens to be in a small town where property is cheaper and so is rent (though properties are generally far more than 35k each). Do these lower prices mean that this is a town of solely D class properties? Hardly. The rules for Knoxville and the rules for there aren't interchangeable. If you tried, I can go ahead and tell you that your bank account isn't going to be happy.

I actually had a property in the Knox area like what you described, and ultimately sold it for a small profit and decided that low C-class and D class property wasn't for me. While some people like those properties, I find that I prefer my passive income to be a bit more passive.