All Forum Posts by: Vana G.

Wow @Barry M. ! That's an awesome way to explain it! I will definitely have to practice that! (I'm going to write your response on a script and practice, hope you don't mind..lol). Thanks!

@Account Closed Good question Ryan! That's kind of confusing to me too.

@Luke Ward Point taken Luke. I remember when we were "stressed" with our property (before I knew about all this stuff). I would have loved at the chance for a wholesaler to get me out of it before it took a negative turn. Could it be maybe they're not that distressed about it?

@Duncan Taylor Thanks Duncan! I understand your point. Now what if you are "reverse wholesaling", would this transparent approach work better you think?

@Matt Devincenzo That's what I'm thinking Matt. Do you know any wholesalers who are using this approach with success? BTW 'IMO'?

@Brian L. Good tip Brian, I'll remember this!

@Joe Gore @Brandon McLean @Bryan L. Ok I see where it could get hairy for sure.

Thanks for the advice all!

This may be a really naive question but I haven't heard anyone answer this in the podcasts or the books I've read...

Why can't wholesalers just say they have a buyer and will be reassigning?

Wouldn't this be easier and more transparent?

Vana

@David Jacques Great advice, thanks David!

@Jeff Rabinowitz @Jeff S. Thanks! A contract was obtained a few days ago (after sitting on the market since 2012). Unless the deal falls through and she calls me as potential backup I won't be given access to leases or rent rolls. Also here in Florida trash pick up is included in the taxes. In this particular case total taxes are 445 + 200 for solid waste management. But I will definitely review leases and tenant screenings, and make a request for any potential deposits. Hopefully at this price point, there are good records of all this information.

Thanks to all for your incredible advice!

@Jeff S. Will be sure implement the advice I've received from both of you in case the 1st deal doesn't come through.

Thanks again!

Jeff,

Thanks, I appreciate your insight! There is deferred maintenance which I had not thought to add. From what I visualize it needs total landscaping, paint, and bahama shutter repair to start; no pics of the inside. I took the taxes off the county appraiser's office for 2013, which have steadily been decreasing to arrive at that number in 2013.

I've guesstimated the insurance and utilities because I did not think to get a quote (duh!) as the agent informed me they had just obtained contract and no longer available. She filled me in on the seller's info because I pressed her to discuss in case the sale fell through.

However, I will be making calls tomorrow to the power company and insurance co. to obtain quotes, as you suggested, in case the original deal falls through.

Do you think the illegal addition is anything to be concerned about?

Thanks again,

Vana

Hi all,

Been looking for a group here in Davie/Weston area. @Buddy LaRue Did you guys meet yet? I'm a newbie and looking to network and share ideas on long term buy and hold. If not, I can help set something up.

Vana

There's a property I've had my eye on in a working class neighborhood (residents upkeep yards, partake in home improvements, plenty of small children playing outside). Advertised as triplex but county property search reveals it's a duplex (agent allegedly unaware of this). The current owner is living in the 1/1 unit, breaks even, cannot afford repairs and now in short sale. Per agent original loan in 2008 for $196K, current job status of owner unknown. Property needs upkeep and has some signs of distress.

Here are the numbers:

Asking price $40k

3 units (2/1, 2/1, & 1/1)

2/1 #1 = $600

2/1 #2 = $700

1/1 = 0 (inhabited by owner)

Taxes = 645/y

Utilities? (no separate H2O meters) I've guesstimated $1200/y

Insurance = Not sure, but guesstimated 2400/y

Vacancy rate= 100% occupied for the last 3 years

Rent Roll = 15,600/y

AOE = 4245/y

GRM (Based on 2 units)= 2.56

Cap = 28 (??)

My questions are as follows:

1. Did I calculate this correctly?? Cap of 28? (cash sale) Should I be basing everything on 2 or 3 units?

2. I know fixing the illegitimate unit will be costly and time consuming, but at this price point and cap rate should I even worry that?

3. What am I missing here?

Any thoughts?

Hello all,

I am considering undertaking the RE License study and exam. Does anyone have any suggestions for an investor friendly RE broker in South Florida (Broward/Miami area)? I would like to broaden my RE knowledge and have direct access to listed properties. Not at all interested in selling to the general public.

Thanks,

V