All Forum Posts by: Kevin Cardinale

someone said don't do yellow letter at all and just do craigslist. and since I have nothing but time... i can do it twice a day.

but what exactly to post in my city?

This isn't for a rehabber. This is for a buy and hold investor. I am trying to find properties in good shape, get the going rental of the area, and sell them to him.

As such, I need more cap rate ROI than i need ARV cap rate.

*sigh* Yeah, it did a perfect calculation on another post I did on here. Was just being lazy here.

That being said, $49,000 was giving full asking price. So if it's that close on full asking, I'm sure the buyer could bid $30,000 if not lower.

$750 x 12 = $9,000 gross annual rents
$9,000 / 2 = $4,500 NOI
$4,500 NOI / $30,000 purchase price = 15% cap rate

The deal just gets better the lower the purchase price of course.

So that seems like a great deal.

New question do I present like 10 of these to the buyer?

Buyer wants cash flow property. From what I can see, except for buying a washing / dryer [ I can't tell, they look like they're there but just in case ... ] it seems move in ready.

The ROI calculation was for the benefit of the buyer, not me.

Case Study: REO

Price $49,000
11/04/2002 Sold $112,000 -- $122 Public Record
Beds 2 bed
Baths 1 bath
House Size 912 sq ft
Lot Size 0.14 Acres
Price/sqft $54
Property Type Single Family Home
Year Built 1977

COMPS
5788 Chisolm Trail
Last sale: $69,900 on Jul 19th, 2011
Status: Sold
Bedrooms: 2
Bathrooms: 2
Property type: Single Family Residential
Size: 928 sqft
Lot: —
Price/sqft: $75/sqft
Year built: 1997

6266 Foothill Boulevard
Last sale: $110,000 on Feb 4th, 2011
Status: Sold
Bedrooms: 2
Bathrooms: 1
Property type: Single Family Residential
Size: 1,220 sqft
Lot: —
Price/sqft: $90/sqft
Year built: 1977

6410 Aclare Avenue
Last sale: $60,000 on May 5th, 2011
Status: Sold
Bedrooms: 3
Bathrooms: 1
Property type: Single Family Residential
Size: 1,008 sqft
Lot: —
Price/sqft: $60/sqft
Year built: 1977

CONCLUSION
Hard to pull comps on such a tiny house. But anyway, this is an REO. The properties around it were all sold for ranging from $65k - $100k.

Pulled up rentals in the area: $720 - $834 range for 850 sq ft. assuming $750 rent.

( $750 x 12 ) / $49,000 = 18.4 cap rate [ uh ROIL ]

NOW I'M COOKING WITH BACON? :mrgreen:

Michael I'm not knocking your advice, but where are these magical munchkins that will suddenly appear to help me. Oh, I'm being negative. *sadpandaface* OK, so that's great, but being Capricorn, I am of a mind that bar none, I will be doing this alone, until I can AFFORD someone else.

Also, please tell me what I can do with the resources I have. If push comes to shove, I'll deliver these bad boys myself, no stamp or anything. I have unlimited time. <---- yup you read that right. Given that, now what say yee?

Unlimited time, limited funds, a list of vacant, borded up, reo houses in my full area.

What's strange is, I thought you Michael, of all people would be gung ho for me to do yellow letters. You're blowing my mind.

So what would you do, if you were me, at this juncture.

P.S. by the way, I emailed about 100 people on zillow in vegas FSBO. I just know they're all going to email me back with super offers. I am imagining money pouring in and happy people selling me their houses.

so just the houses on my list i gathered from walking the neighborhood?

Before I Spend $200 a Week in Marketing ...

According to videos, reviews, blogs, gurus I am supposed to be putting out 200 letters a week.

So I went and priced the materials and before I start my whirlwind of purchasing, is doing this yellow letter campaign the thing to do?

And, do I just blanket and area, or am i specifically targeting the run down houses on my list?

Or is it best to just find the owner of the run down house and call him? [ if he can be found ]

Or, finally, is there some way to do this without all of this?

ok call me dumb, but i offered in my email to take no profit THIS ONE TIME, [at band camp], just so that the buyer would have a nice profit.

My thinking being, the wholesaler would get to know me and the buyer would get to know me. Later one, I would learn how the deal works and take it from there.

You could say, I am paying for my education in this, by doing this.

right?

Specifically, I am looking at a guy here in Vegas, that sells nothing but lease options. I'm assuming he's a rehabber, because his prices do not check out with what they should be. And his terms are really tight. There is no way that I could buy from him and lease option it out to someone else. He would literally have to cut his profit in half, for me to even consider making a profit off of someone else.

BE THAT AS IT MAY.

I emailed him, with my proposal, and he wrote back saying I could negotiate with him. I had even told him why I would doing it. And, his email said, he and I could negotiate to come up with a deal profitable enough for my buyer.... who in turn would be lease optioning the property.

So that's:

1. him lease optioning
2. me lease optioning
3. my buyer lease optioning

Oh that's just plans within plans within plans