All Forum Posts by: Stephen Sokolow

Hi @Devin MacTavish would that be land deal financing? Or in these parks do you own the homes? I would love to learn more about Mimi Home parks. Please connect so we can talk more. 

So I have finished pouring over the Q4 sales research for the South Bend area. I am trying to make sense of where the opportunities are in our area. Once again the 46614 area came in 1st place for the most retail and investment deals. My question to everyone is why? 

What about Downtown South Bend? It seems the Mayor and the CIty are doing an amazing job at bringing it back from the dead. But, where are the opportunities for us? Are they buy and hold? Brrr? Flip? 

I don't know about you but I am excited about the New Year and exploring new deals and new areas. I would love to hear what you guys are up to here in South Bend and what your thoughts are on the market.  

Hi,

I wanted to get advice on buying a pre foreclosure. The person is asking $160,000. Realty Trac shows that the mortgage is for $130,000. I plan on going to the recorders office tomorrow to find out how much the judgement is for but my question is how do I go about structuring an offer? I see right off the bat they are trying to get out of the deal with a $30,000 profit. 

Do I approach it as a short sale?

Hello all,

I am in the South Bend market and have recently been focused in on REO's. I am using the MLS to located deals within a predefined zipcode (46614). My experience so far is that there is not a ton of inventory (9 currently listed) and when I submit offers either the banks are not answering or they are only coming off their asking price by a max of $2000. Is that normal? I am using a fix and flip model. Most of the homes are in rough shape and it seems the banks are not taking that into consideration in their asking price. I am using the flip calculator and sold comps form the mls to come up with my offers. So far I have not had any offers accepted.

My questions are this. 1. Should I start looking into other markets? 2. Are other investors finding this pattern in their local markets? 3. Is it still profitable to pursue REO's or should I start to look into other strategies for acquisition? As always feedback is much appreciated and I thank you in advance for taking the time to read this and answer my questions. Happy Thanksgiving!

Hi all,

I am looking for a realtor recommendation for Rochester. Thanks

@Thomas Franklin I hope I am not being pushy when I ask this but would you care to share your formula for how you come up with your MAO?

@Thomas Franklin Thank you very much for the feedback and detailed response. I like the 10%  number for the unexpected. I put that number in a different place in the deal. I had 3 contractors out who gave estimates. Most say between $20,000-$25,000 in rehab. I am saying $30,000 to account for the unexpected. I think based on what you are saying though I do need to adjust some on the closing cost which I just emailed a title company for a detailed breakdown. 

I have been using the BP flip calculator which I like but now I see that it could use some added features. 

@Pat Heminger I am looking for an $85,000 investment

@Thomas Franklin I do not take any offense to your analysis. On the contrary I thank you for taking the time to go over the deal and reaching out to me. I did not calculate 7% on the backend because I think that is very high for South Bend. Here it is closer to 3% commission (because I have the license) and 3% for title, taxes, insurance. I was low in calculating holding cost though and am re running all my numbers now. I see you are in Miami. I used to live there and I know that the 7% on the back end is typical. The cost are much lower here. 

What would a good profit margin look like to you and how do you usually structure your partnerships going in on something like this?

Again thank you very much for taking the time to consider this. 

I am looking for an equity partner for a rehab flip deal here in South Bend. I have over 15 years experience in both commercial and residential real estate. I am an active Broker here in South Bend and consider myself to be a market expert. I have recently located a home that I would like to flip. The numbers look like this:

PP: $55,000

Rehab: $30,000

ARV: $112,000

I am seeking a partner that would like to invest in this deal with me. I am offering a 10% return on investment. Depending on your experience I would consider a fair split of the profit. Please contact me for more information. 

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