All Forum Posts by: Terry Sutherland

He reached out to me as well offering funds. Intercontinental private lending was the co. 4% 3 months up to 25 yrs. Sounded to good to be true to me so I was very skeptical as well.

1 Vote

Originally posted by @Douglas W. Rink:

Also, if the improvements are not permitted...you might try

looking for a "Certified Structural Engineer" to inspect the home first.

If they "Wet Seal" the home as to code...The County will likely HAVE to issue you a permit for the improvements regardless of when they were done.

In NC, anyway, a Certified Structural Engineer" out ranks a Building Inspector in every regard. Check your state as well and be firm in your resolve.

This is a technique I had to learn the hard way...but I never understood how building code "modulars" could be assembled in a factory with all the inspections like electrical and plumbing so I called them and asked how many county building inspectors they had on payroll to build all those homes and they said "None". I said, "How's that?" and they said we have on site CSE's we don't need building inspectors"

Put this little bit if knowledge in your tool belt, you will see this again...

Good luck...

-dr

Thanks for all the info @Douglas W. Rink

0 Votes

just spoke to realtor. Says nothing is wrong with home. Only disclosure is lead base paint because was built before 1978 (old portion of home only) . But no lead that he is aware of. Just went out of pending status due to financial reasons only so seller dropped price again just to unload it. He said another investor was coming to see it today.

0 Votes

Originally posted by @Wayne Brooks:

@Terry Sutherland Just following up...I looked up this property in Hopewell, and it's been for sale since June when they started at $69k. It's been at $30k since 10/01. Since it hasn't sold, this tells you it's worth less than $30k, for whatever reason.

Sold in 2004 as a smaller house. I think 900 Sq ft. 1000 ft. Added with 2nd story then home sold for 143,000 then forclosed in mar.2015 at 100,359 then up for sale at 69,900 by bank

0 Votes

Originally posted by @J Scott:

Originally posted by @Terry Sutherland:

I just wanted to say first: I'm not upset at anyone. @jay made a proposal and I simply said no thank you. You don't have to accept every deal offered. I appreciate him offering a way for me to get the house. My only problem with it really wasn't the amount he was trying to make but the fact that even after 120 days I would still need to find a loan which would still be considered to low of an amount for a loan. The bank said they usually have to be around 55-60,000. But that doesn't mean I'm going to pay that amount. If the offer was a way to finance the house , or partner somehow, it would be a different story. I respect him and everyone else on here. Hopefully one day I'll be in yall's position and will be able to help someone.

Absolutely understood. And I didn't mean to imply that you were upset about it...sorry about that...

Brett seemed to be a little bit upset for you (at least he acknowledged you had reason to be upset), and I was simply pointing out exactly what you pointed out above -- Jay made an offer, you considered it, you decided it wasn't a good offer for you, and you moved on. Nothing wrong with that whatsoever.

Again, I didn't mean to imply I knew how you felt...was just playing through an analogy with Brett who thought you might be more bothered by it...

No worries at all. I'm enjoy both sides of the debate lol. Thank you for your feedback. And thanks Brett for your understanding.

0 Votes

Or iginally posted by @J Scott:

Originally posted by @Brent Coombs:

@J Scott, in principle I agree, but in practice, it's short-term 60% interest!

The poor fellow can't have his bar of soap until he pays $1.60!...

He thinks the bar of soap is worth $4.80...he should be thrilled to have the option to buy it for $1.60. He's just upset because he *wants* to buy it for $1.00.

If that's your analogy, I find it hard to feel sorry for him...

1 Vote

Originally posted by @Logan Drew:

Originally posted by @Account Closed:

Originally posted by @Logan Drew:

Originally posted by @Account Closed:

Originally posted by @Logan Drew:

Try a different retail bank that you have a relationship with, not a credit union. Also try a small local bank. They might bite on it to get you to open other accounts. Also, ask the listing agent (or your own agent to ask the listing agent) if there has been an appraisal done within the last 12 mos. Take that appraisal and approach a few mortgage brokers that can do hard money. You'll find someone that knows someone who wants to make a small loan if the deal is good.

It is important to note that a tax assessment is not a good gauge of value. It's actually not a gauge of value at all. As a matter of fact, tax assessments are rarely within 20% of the market value of a property and can be very outdated (high or low). Never use assessed value for anything as a rule of thumb...

Your California-ness is showing. Tax assessment in some areas are way more relevant. Many get annual reassessment to market. My inlaws in OH and family in CT get reassessments annually that do reflect value, although fixed in time when the market could be going crazy. Not anything like CA where houses that haven't sold in 30 years are assessed at $100K and the same house next door is assessed at $650K. I too never use assessments for my purposes, since real valuation data is available. But lots of folks are paying taxes on assessments WAY closer to value than we are.

You are correct that some tax assessments may be 'closer' to market value, but an investor should never use tax assessed value to make decisions about a property's value. They should only use market value (run comps or get an opinion from an appraiser or local Realtor/ BPO). I am from Pennsylvania and actually am flipping houses there right now. The same goes there. You can't trust a county's valuation of a property no matter where you are at. The 5 minutes it would take to run comps on a property is time well spent. Stay away from decision-making based on tax assessed value.

My comment was directed at your opinion that assessed values are usually 20% off market. Really depends on the muni, really depends on the market. That kind of stat is just too broad for my taste. :)

It's annoying and troubling how often tax assessed value gets cited here. When anyone posts a deal here where they list tax assessed value they are either 1) a newbie and don't know how to do valuations or 2) someone posting in the Marketplace trying to sell a deal to newbies.

The poster, who is new to investing, mentioned the use of tax assessment as their gauge of value. This is exactly the reason I posted about tax assessments. I am literally telling the new investor not to pay attention to tax assessments. Your post could be construed as if assessments are a good gauge of value in some locales, which it is not. Whether the assessment is within 20% of the value or not, it is not a good gauge of market value. An investor needs to run their own analysis. That said, the point is not to use tax assessments in the market valuation conversation and nothing else. The conversation wasn't about the actual variance between market value and tax assessed value, it was to ensure tax assessed value is not used in analyzing the market value of real property and that it doesn't become a bad habit for a new investor.

Thanks @LoganDrew I do appreciate the knowledge and perspective that I hadn't really thought about. I'll definitely use this info from here on.

0 Votes

Originally posted by @Adam Anderson:

Priced that low most lenders wouldn't be interested because there's just not enough money in it for them. I would sugest talking to your bank about a credit line or look into peer to peer lenders. They will do smaller loans at decent rates.

Adam

Thanks adam

0 Votes

All Forum Posts by: Terry Sutherland

Terry Sutherland has started 2 posts and replied 24 times.

Post: A current member of BP just offered to be lender out of the blue.

Post: too good of a deal? hard money

Post: too good of a deal? hard money

Post: too good of a deal? hard money

Post: too good of a deal? hard money

Post: too good of a deal? hard money

Post: too good of a deal? hard money

Post: too good of a deal? hard money

Post: too good of a deal? hard money

Post: too good of a deal? hard money