All Forum Posts by: Scott R.

Small 2 bed 1 bath 720 sqft brick house, central heating., simple house. Paid $24,000. spent way to much remodeling and made it way to nice for the area and the first renters trashed it. Spent 6 months remodeling it myself, around $8k in materials. Currently still own house, has been a great rental every since. currently rented at $500/mo. Not the best deal, but not a bad deal for my first deal!
-Scott

Nobody!? been posted for 24 hours!
Basically I've been told I need 3 basic documents.
Deed of Trust
Note
Warranty Deed with Vendors Lien!?
-Scott

Thanks for all of the suggestions guys,!
local member of my REI club which is put on by Ryan Webber of this forum, and its an awesome group of people with tons of information, problem being, most if not all of them are well established, have been for years, and have commercial bank lines of credit or some type of avaible funds like that from there banks, and they dont have a need for long term hm, if they need short term is avaible and I currently have a few short term loans with different lenders. I've made friends with some of the biggest and most investor friendly realtors there are, and still not able to get a solid lead for a long term investment, every lead I get it seems the person is no longer doing loans, or the phone numbers are no longer valid. This town is full of great deals, and full of very successful investors, and it seems i just cant even try and keep up with them, they can fund in 1 day, takes me 2 weeks to find someone to possibly work with and it normally doesnt work out.
Big difference from most the bigger investors here is that most of them are short term flips and wholesales, and Im looking for long term rentals.
-Scott

Ok, so I have possibly located financing for a property I'm interested in purchasing, just kinda talking to a possible investor.
At this time, neither one of us really know the in and outs creating such a loan.
What is the process we would go through to create this loan and make it best for both of us, as he doesnt wanna put his money out and get screwed, and i dont wanna make payments and never end up with the property.
just an FYI property sales price is $25900.
were talking bout a 30 year amort 3 year balloon interest only, 4 points up front.
Thanks!!!
-Scott

Trustee sales in Tucson seem to be a joke, last month I think one of the properties actually sold as all the rest were over priced, i think short sales would be better in Tucson, but I'm assuming your looking to invest in Phoenix?
-Scott

110k total price
27.5/unit
550 rent
fits 2% rule,
Need alittle more information to figure out cap rate and such, are the units all metered separately,.? electric/gas/water

For the cap rate you have to figure the Net Operating Income of the property.

subtract the vacancy amount and operating expenses from the property's gross income. operating expenses include maintance, taxes, insurance, management, advertising ect.

Could get atleast a little closer with the est taxes and insurance for the property.

Yes Will, I did read it, although I'm trying to keep from getting too complicated and having 2nd and 3rd position.

I DO have a property worth around $20,000 rented for $400 that I'd be willing to refi for $10,000 as its free and clear.

Might prevent me from having to have multiple investors on one property.

Havent really consitered multiple investors as the amounts im searching for are only $10-25k.

My main problem is finding people with these SDIRA's. I just dont know how to approach people about this, how to find people that have them, and then actually convince them to allow me to use some of the funds to purchase real estate. Ive posted newspaper ads, craigslist, thrify nickle all with ads that have something to do with "is your money/savings/retirement not earing you 12%? invest locally, investments backed by real estate" and such ads and have had very little replys, none from craigslist and thrifty nickle, 2 from news paper and one was just to see if i had property I wanted to sell.

Its not the credit problem necessairly, its the finding someone who actually has the money to loan, The real estate market locally is doing wonderful, the properties im looking at are generall $25,000., ARV around $35-40. Credit shows NO late payments only thing hurting me alittle bit its high debt since i purchased one house id like to refi with a long term investor on my visa.. Have used 2 local short term guys which are big in this city and have been using as referenced. Family isnt really an option, and I dont know where else to look, been looking for a $25,000 loan, arv prob $35000 to be safe, looking to put down another property I owe free and clear worth maybe $15-20k (rented at 400) as collateral and just cant get anyone to do it, ill pay closing cost, ill pay some points up front, idk know what else to do!>?
Seller financing is readily avaible in my town, but the properties im looking at for $25,000 sit in the same neighborhood as tons of OWC properties priced at $50k+ and are generally in worse condition. Theres no way I can pay that as its at the very peak or over ARV.
Been offering $1,000 to all the investors/agents i know that can bring me a lender who can close one long term HML, feel I've been searching and persuing this pretty agressively and cant find anything.

Generally its very hard to find comps for such a property, especailly since normally this property will be on a big lot, have nicer views, and high dollar finishes. Could a similar house be build for the cost? Most million plus houses in most areas are custom built.
Also there is normally a specific agent in most cities that deal with higher priced properties and have buyers and sellers of higher priced properties, generally they'd be the best possible agent for such a property.

Generally my experience is most million + dollar homes are toured by the agent before the potential buyer is even aware of the property. Several years ago (unsure lately) it was a pretty common thing to hold a Broker or Agent open house at the property and have a wine or cheese party or offer a give away to draw as many agents to the property as possible.

Andrew - was the property ever reduced by the other agent? was there foot trafic to view the property? Seems like a no brainer but if your property isnt getting any attention by buyers and agents its probablly over priced. Id say the million dollar plus catagorie is probablly the one range that's over priced the most.

$200,000 house and your at 10% over the ARV on your asking price and your up to $220,000 difference but not huge,
1.2 million and your at 110% of ARV your over priced by $110,00!

With the way the market is right now most buyers of million dollar houses cant sell there houses and or obtain financing. Generally speaking if your buying a million dollar property your probablly selling a higher dollar property aswell
what market are you in? million dollars in Amarillo Tx is a mansion, and going to be on of the top priced properties in the whole city, in San Francisco its not quite as the case.
-Scott

$10,000 bonuses and such for realtors are often noted in agent notes on the MLS, I've even seem them go as far as giving away a new car just to sell the property.

What do you believe the ARV is on the house? one thing ive learned on my cheap rentals is work generally cost the same on a 20,000 house or a 100,000 house..
if its a 200,000 house and even lets say purchase price is 50%- $100,000 that leaves you with a big ballpark for profit and the avaiblilty to do a few couple thousand dollar repairs that you wernt sure if they were needed. If the property is worth 20,000 and you purchase at 50%, $10,000 it leaves you with tiny amount of profit and a $3000 water line could eat up most of your profit.

Replacing a 100' water line on my $20,000 house would generally cost the same as replacing a 100' water line on a $200,000 house.
Hope this helps?
-Scott