All Forum Posts by: Account Closed

Hi Guys,

So I have come across a 12 unit apartment complex (6 separate buildings, 2 apts each (2 bedrooms) that Im thinking about buying and holding. They are off the market. and seem to need quite a bit of renovations to bring up to a value where Id be able to rent out for a nice cash flow, and attract ideal tenants. Its owned by 3 individuals who inherited and they've lost anywhere from 15 to 20 separate units to the state so im guessing their motivated. Tried to sell for $350,000 about 5 years ago, but nothing went through. Properties aren't on the market and after driving through, I noticed that the tenants dont seem to be ideal. My source who is friends with the owners brother says that several of them haven't paid rent in months.

The neighborhood isn't bad, just seems as though it has landlords who dont value the quality of their property, never did improvements or kept it up, so it can be potentially a good building

After doing some due diligence, It doesn't even have a building value under the property appraisal site.

Im surely going to have to get a lawyer involved to make sure everything checks out and of course the title company to see about any liens.

Im wondering how would you guys go about acquiring this property. I know you don't really recommend taking on a project that needs work but I can just tell it culd be a great investment. It really has potential. With a good rehabbing, and vision, im sure each unit could rent for about $550-$700 a month. I have about $10,000- 15,000 cash to put toward this and pretty good credit.. My dad is also willing to take this venture up. They are asking $100,000 but after checking this place out, they should be giving me $5,000 to take it off them lol. Being that they seem to be motivated to sale, how should I approach this. Renovations should cost somewhere from $20,000- 40,000.

1- How would you go about negotiating this deal? What options do I have to get the best deal possible

2- What is the deal you would make?

2- Strategy to use to buy the property to pay it off, using cash and credit, or bother, as soon as possible and generate a positive cash flow?

B) Is there any way to use as minimum cash possible

Long question but I would appreciate you guys feedback.

If I become a licensed agent to get access to the mls, are there any limitations as to how I would go about dealing with probates? Would I be able to wholesale probate as an investor Would I be able to fix and flip? From my understanding, as long as I disclose that I am a licensed agent, I should be fine.?? Please explain. Thanks properties

Thanks Guys,

For all of your replies. Im really fortunate to have access to a resource where I can get the right info and best practices. The last thing I want to do is get a bad reputation and be breaking the law. Ive completely backed out and let the parties know Im not experienced enough or knowledgeable on the rules and regulations to proceed. Everyone makes it look so easy! but I see that paying close attention to detail and each step in these processes this is really serious.

Im thinking you guys saved me a ton of legal issues and set backs. Ive been reading books and watching a lot of videos but it seems that no two deals are ever the same. Id like to get into real estate long term so Its definitely important Im getting all the proper information. How did you guys start, if you don't mind me asking. What did you do to Get the ball rolling? Did you start on your own based on what you read or did you have experience with a knowledgeable investor, rehabber, etc?

Hi guys,

I just recently joined the bigger pockets community about 2 weeks ago because I had been researching wholesaling and assignment contracts. On my way home from work I started writing down addresses of "for sale" properties and I sent letters out offereing to find a buyer for their homes using an assignment contract.

Turns out that one of the owners I sent a letter out to was a business ( LLC) and they had quite a few properties. They gave me a call and he agreed to allow me to find a buyer however he did not want to do the assignment contract deal because he didn't want to " have said acquisition tied up as they have a cash buyer lined up at 55k." Which i can understand if he can But still offered me the opportunity to go and find a buyer. (at this point there is no contract so im worried about circumventing). I advertised the home as Ive done for other items like cars, televisions, etc.not knowing I could take this assignment contract route in real estate. I posted it for 61k. and I have 2 buyers wanting to schedule a viewing of the home. The guy who has the home, myself and the 2 potential buyers will be there. I dont personally think I should be there but because I dont have the home under any legal documents saying I will be paid, I think I should either meet with him before to have something signed.

Problem is: I dont have a contract at this point but I have 2 possible cash buyers ready to see the home. The viewing should happen in the next few days. What contracts do I need to have filled out to guarantee I will not lose out on my portion of the deal. Should i be at the viewing of the home? Which contracts do I need to have filled out? Would you make any changes in the way I have set up the deal so far? How should this negotiation take place up until the closing and a check arrives? Any advice would be greatly appreciated?

Thanks

Any suggestions?