All Forum Posts by: Shvonne C.

@Lyandrea Russell there is a Southern CT REIA meetup next Wednesday Sept 10th at 6pm at the Fairfield Library on the Post Rd if you are interested in attending. I could send you a message with more info.

Thanks @Craig Bellot and @Karin Crompton for the information and guidance.  

@Craig Bellot the 3/1 could rent for $950-1000. The 2/1 could rent for $850-900.

@Daniel Raposo what type of buy and hold expenses do you mean? The property has no mortgage. Right now the electric and water is off in the vacant property. 

I'm about to make an offer on a 2 family home in Ansonia, Connecticut.  If this offer is accepted this would be my first property that I will be attempting to wholesale.  The owners are motivated. They initially asked for $70k but after my 2nd visit to the property said they would take $60k.  Here are the specifics:

• Downstairs apartment has 2/1. The lower level is finished and could serve as a 3rd bedroom (there is a room that could serve as a walk-in closet).
• The upstairs apartment is 3/1. 
• The downstairs has a tenant that will be leaving before the property sells.
• The downstairs property can get away with cosmetic fixing, mostly cleaning needed to get it rent ready for someone else. The most costly thing would probably be fixing the light/fan in the bathroom.
• The upstairs kitchen and bathroom need to be put back together.  The current owners have cabinets for the kitchen and a vanity for the bathroom at the location that would stay but nothing else. The upstairs also needs the floors refinished, painting, cleaning.
• The decks were okayed by an inspector according to the current owner but they look like they don't have many years left.
• The yard is like a jungle so it needs to be cut/trimmed
• Some of the siding shingles needs to be repaired or replaced
• They ran new electrical wiring upstairs but it needs to be connected to the box in the basement.
• The owner has agreed to remove the dumpster currently in the front yard and clear out all the "trash" there before it sells.

ARV: $98-102,000

Repair costs: $20k on the mid/high side

Using 70% of ARV and an assignment fee of $5k it looks like my MAO would be about $43k.

The owners are also including the extra lot of land next door to the property.  There was a very tiny 1/1 house on it that burned down many years ago and now the space is used for parking.  So i'd be getting 2 pieces of land in the deal.

The owners just want to be free of the home so they can move out of state.  I know just from a public records search that there are about $20k worth of liens on the property.

Does getting the property under contract at $60k seem like a good deal or would my MAO of about $43k be the only way to make it work?

Also, if I do get this under contract at either price, does it look more enticing to a flipper or buy and hold person

Thanks!

Was the book talking about lease-option wholesaling?  

Similar to straight wholesaling where you get a motivated seller under contract and find an end buyer, lease-option wholesaling works the same way but usually involves longer termed contracts because you are dealing with tenant-buyers that have large down payments but can't get financing right now.  For those types of deals, a seller will usually agree to that if they are having a hard time selling their property.  You can convince them of the benefit (usually financial) of getting someone into the property that will pay a nice rent for it, maintain it and then hopefully take the option to buy it at the end of the lease term (hopefully over the term of the lease the tenant-buyers credit improved enough to get financing). 

If the tenant-buyer chooses not to exercise their option to buy at least the seller had cash in their pocket for the lease term and ideally the house was taken care of.

I will be there! I told some folks at the last CTREIA meeting about it also so hopefully they make it.

Wow @Hattie Dizmond! That was a nice post. 

I have a question about closing costs, who usually pays? Does everyone pay their own or does the cash investor/buyer usually pay. I've seen contracts with both. Do people have a preference? 

@Yliana Guzman Bridgeport would be a decent place to start in Connecticut as @Craig Bellot mentioned. Waterbury is also a decent area for rentals but not sure you want to be that far from New York -it's probably 90 mins.  I have a couple of potential sellers I'm talking to in Bridgeport now, I'll keep you in mind.

welcome @JaNarria Johnson 

@Dmitriy Fomichenko makes good suggestions for getting started.

@June Alexandrea you should be able to find info about the deceased person via probate records. You can google the towns probate court and see if the records are online, sometimes you get lucky. If not, you'd have to go to the probate office and look it up. Some probate employees give you a hard time but be persistent, these are public records and they can't deny you access.

If you're really lucky probate and the town/city clerks office will be in the same building and you can do a preliminary search on any taxes, liens, foreclosure, etc... That might be attached to the property.

I agree with @Rick H. about leaving the info about the death out of the letter. You just need to do a little due diligence and then send her a letter as the potential solution to her issue of having a vacant sitting property.