All Forum Posts by: Kathy Utiss

I'm with Joe on that...12-18% but that sounds like a huge outlay...Might want to go for a percentage of the actual profit..As well. How much are they putting into the project? How much experience do they have? What are their finances truly like? Sounds like a lot of cash for apparent experience. Hope you know them well. Make sure there is nothing to uncover afterwards. That you know the truth of the situation. Make sure you have your banker review every fine detail. 

Josh, 

A subject to leaves it in the original homeowners name. Unless, you refinance it out of the homeowners name. Or you sell the property. You can also see if the lien-holder is negotiable with a short or note sale on the actual note. Be sure if you do the personal loan route then a refi that there won't be any prepayment penalties or seasoning required to throw a wrench in somewhere. :) 

There are people that do subject to deals. Rightfully, one should qualify to take over someone else's home loan. I think most will utilize a QCD-Quit Claim Deed. But if they are behind and running into foreclosure you will be responsible to catch up the past due pymts in order to keep control of the asset. Just because it's a subject to does it make sense to outlay xyz? Is there equity? Is there repairs? What is your expected hold time and costs? If your taking over someone else's lien is there any room to make a profit if you do it subject to and get someone in there to pay more than the payment is? Do you have the money to make the payments if you take it over and don't get it rented out.?

Here's a 24 unit in San Fran 

https://www.loopnet.com/Listing/949-Post-St-San-Francisco-CA/17274789/


45 Unit
https://www.loopnet.com/Listing/698-Bush-St-San-Francisco-CA/15774659/

33 Unit
https://www.loopnet.com/Listing/376-Ellis-St-San-Francisco-CA/14571152/

42 Unit-

https://www.loopnet.com/Listing/285-Turk-St-San-Francisco-CA/12696668/

This one is in Santa Monica 

https://www.loopnet.com/Listing/858-860-3rd-St-Santa-Monica-CA/17339304/

I wouldn't go by tax assessed value...I'd be looking at properties near the home for sale or that have recently sold. This property was a homepath one that I really liked..Asking price was $59,000. Home next door sold for $132,375. A good tool I find to use is realtytrac. As you can search by name of street and such you want to get the to the screen that looks like this 

https://www.realtor.com/realestateandhomes-detail/4861-Eva-Rue-Ln_House-Springs_MO_63051_M84328-44373

https://www.realtytrac.com/mapsearch/sold/mo/jefferson-county/house-springs/63051/eva-rue-ln/?sortbyfield=proximity,asc&address=eva%20rue%20ln,%20house%20springs,%20mo%2063051&enableaddress=1

Good numbers...I can show you even better :) Using collateral enhancement I can show you how to do a few different things. 1st thing is for every portfolio you expect to make $100 million on in 30 yrs. I can show you how to make $140 million instead. Every loan originated is also insured against default. By doing such you end up with an interest only loan. Remember the debt is insured against default. This means your initial down payment most want, and your principal payments. Imagine it every investor is looking to originate in an LLC as well. Also, questionable deals require reserves...No RESERVES NEEDED..Lenders have many overlays or ways to try to kill a deal...But NUMBERS do some incredible things.

Completed Value of  Modular Home $350,000

Cost for Home and Improvements $212,000 or less

Cost for Land $60,000 (6 Lots) (Expected Appraised Value $120,000)

$222,000 is 63% (Loan to Value)

Potential Equity on Each Home is $128,000 if no realtor is needed or it goes down to $107,000

There is a contract in place for the land purchase. Also with the modular home provider/builder. 

What about via county records? Tax Records or Recorder's office? Maybe running an address search on said property may enlighten a lot to on a property. I looked up where you are Jefferson county has online access to such things here. 

https://search.jeffersondeeds.com/

A good tool to use to find out what counties you can review records on nationally is at netronline.com 

 Arv $780,000

Purchase Price $425,000 is a 54% LTV

$425,000/$780,000.

At any rate the potential equity then is $355,000. That's just at the 54% most hard money lenders will go to 65-75% ltv depending on the circumstances. But then you have to factor in what is going to get you top dollar for the property. Repair costs, holding costs, realtor's fee's. Then what are you willing to do for the homeowner?  That's a lot of money to lose out on. I know most investors don't care when it comes to such a situation. However, what make's it a win win situation? Maybe, house hack it. Let her pay to live there and get a couple of roommates paying rent as well? Elderly one's like her, or a vibrant person who needs a decent place to rent at a good price. 

Housing is at a premium for everyone trying to make it. What is your credit like if you have to purchase, and get out of her name to pay her off something out of it? 

You may want to put a post in the St. Louis Real Estate Investors FB group. They usually know good contractors in the area.