All Forum Posts by: Stephen Frick

I'm starting my first DM campaign. I've been doing a lot of research and there are a lot of sites you can order lists from. I was hoping the more experienced marketers could share what sites are the best bang for your buck. Thanks.

Nick DeMarco I am a lender here in Jacksonville and can recommend various professionals in all of those areas. PM me if your interested.

@Mike Watkins thanks for the info. Listability is great in theory, but tough to use.  Not quite sure how to use it. 

Hello all. Need your help! I'm putting together a business plan to start wholesaling in Jacksonville, FL. Nothing large at first, just want to aim for one property a month. I've got about $1000 in cash to start with. For the experienced wholesalers out there, where would you spend that money to get the best results? Thanks for your input!

Quick question on the subject of private money. What are the typical terms in years, rate, amo schedule? Need help to know what I'm up against when trying to raise capital for a deal.

Update: Went an looked at the property. Listed as a 3/3, however 1 bed and 1 bath are in a detached mother in law sweet. More than likely I would only get 2/2 rent out this thing.

The property would need about 30K Rehab to be rentable.

Factoring all of that, this property to me isn't worth it unless you can steal it at 30K or less.

Just to answer a few of the comments earlier:

@David Jaques I wouldn't qualify for conventional credit due to LTV and DTI guidelines. The banks are regulated even more after the last bit of legislation in January. DTI is capped at 43% in most cases and adding utilities to the debt pad. Also, I would have to borrow the down payment, and you would need 60 days seasoning. So I was going to just ask for the full amount from a family member. I felt like 6% was fair for their money and made the deal work.

I'm glad this property came up because it gave me an opportunity to see what goes into analyzing and finding deals. In addition, I was able to pick the brains of some valuable team members like my insurance broker, mortgage broker, the listing agent, and 2 friends who have invaluable knowledge (one who knows construction costs and the other who is a real estate attorney).

And best of all, you guys have been a huge help. Thanks everyone for sharing your thoughts!

Aaron. No money down at this time. Trying to do this deal with some family members writing the mortgage at 6%.

I spoke with my insurance guy. Sao no more than 1000/yr.

I like the cap ex rat you use. However roof will never be a problem. My good friend is a roofer and always said he would do it cost plus a case of craft beers of his choice. However I will budget as you explained. Love being conservative!

With all that said, I'm gonna view the property tonight and see what kind of work needs to be done and will update with the best numbers.

Thanks again everyone I'm learning from every post in this thread!

Thanks for the feedback.

The property has been on the market for 2 days. We are going to get into the property before making an offer. So the Rehab costs are just speculation to see where the deal makes sense. Just want a good idea as I'm picking the place apart.

The rent was extremely conservative. Would probably get 1000 easily. Mortgage payment was an estimate also. Hoping I can get a family member to lend me the money at a nice return for them. Thinking 6 is fair but would like to negotiate 5%.

Are there any figures that I'm leaving out of my analysis?

What should I use for annual maintanence cost?

Hey guys. Looking at a possible buy and hold deal....first one!!! Used the SFH Rental Analysis file. It was a huge help. The deal looks okay, but I would love some feed back on my numbers. Full disclosure, I like to be very conservative on my numbers so I could be selling this deal short.

The foreclosed property is a 3/2* (there is a third bathroom which is in a detached space that isn't usable at this time so I would rent it as a 3/2).

Price 73K

Looks to be in good shape, but won't really know till we get in there this week. From the pictures and what we saw from the outside, estimate about 10K in Reno Costs.

Mortgage payment - 438/mo. Trying to line up a private family investor who I think will hold the mortgage and we would pay 6% on a 30 year. Getting less than 1% on it now in the bank I work at.

Closing Costs - I estimate around 3%

Rent - Conservatively figure 950/mo

Taxes - 1969 last year

Insurance - I estimated at $1500/yr, taking into account our millage rate

I used a 8% vacancy rate

I used $1200 per year for maintenance* (Not sure what to estimate here, please any suggestions on this figure)

Good news is, the house is .10 from my house so we plan on managing the property ourselves to save costs. Also the bad news though. Not sure I like the idea of running into the tenants in a social setting or walking in the neighborhood. But I don't really want to let that kill a good deal.

Final Verdict: at those numbers it doesn't even come close to the threshold of $100/mo. However, If I can negotiate a bit and get the bank to agree to 62K, then I like it a lot more. (Assuming all of my numbers are accurate)

Please provide feedback on my numbers and any experience you may have negotiating with a bank on a foreclosure.

Thanks everyone! This site has really opened my eyes that anything is possible!

Great topic! Section 8 housing is actually what got me thinking about REI. I read that my county has over 3000 families on the Section 8 waiting list. Seems like a built in marketing list. A few questions for those more experienced with Section 8 housing: 1) does anyone have a link to all things relevant when it comes to offering Sec8 rental? 2) is there a checklist of some sort that hits the main points at what the sec8 inspection will look for? 3) how can I find out what market rent is for a particular neighborhood. Thanks!