All Forum Posts by: Umair Baig

Hello BP!

I recently got a property under contract in East Orange, Nj. Now my question is, how do I go about finding Cash buyers to purchase the property in a low income neighborhood? The property is located on a block which has rentals up and down. It isn't a rehab deal, its more of a buy and hold investment for long term cash flow. I know the pros and cons of investing in the "ghettos" strong rental rates; safety issues etc... I was planning on getting a hold of  investors who currently owns properties in that block, and possibly pitching the deal to them. If anyone has any suggestions as to how I would find investors willing to invest in that area I would real appreciate that. 

Hello Biggerpockets! 

I am doing a little research on targeting home owners who have properties with back taxes on them. I am planning to launch a direct mail campaign to properties that would be going to the tax sale this year, so mailing them a letter before the state takes the property and offering them cash. My question is can you wholesale these properties? Does anyone have any experience with this? is this a profitable niche?

Originally posted by @Brendan D.:

Originally posted by @Umair Baig:

Hello Biggerpockets!

I recently got a property under contract, when I blasted it out to my vip buyers list every single one of my buyers passed on the deal. Here are the numbers ARV: 375k repairs: 32k acquisition: $280k. I was receiving the same feedback; the spread was too tight. I am looking to market this property to landlords now as a buy and hold deal. Any suggestions as to what steps I should take next?

 I agreee with Steve, without knowing what the rents are you have no way of knowing if it's a deal or not. check out rentometer.com to get rental comps for the property. 

also, if experienced buyers have passed on it, then it's probably not a deal at that price.

just running the numbers quickly, it doesn't look good. if your buyer used hard money, they'd need to bring at least 40k to the table to make this deal work. how solid are the comps?

 ok just did some quick numbers here and got an average of $2,500 rent. the comps on this deal is solid I used recently sold comparable properties and adjusted them based on how many beds/baths they were missing so a arv of 375k is solid. I did some research and found out you dont need to get such a deep discount when you wholesale to landlords compared to when you wholesale to flippers? I am assuming if the numbers work then why not try and market this deal out to buy and hold investors? 

Originally posted by @Steve Vaughan:

Good to know about the repair estimate being for a retail buyer.  A class tenants in A class neighborhoods like things to be nice, of course.  Not sure if this is a blue-collar neighborhood or something nicer?  Here it would be a nicer house is a nice area at that price point.  Overall is this a fancier place or just average @Umair Baig?

 its in Verona, NJ the city is a bit more upscale but nothing too fancy, close to many schools and businesses. In order for me to go ahead and market this property to landlords what information would I need to gather? 

thanks,

Originally posted by @Steve Vaughan:

As a buy and holder, I need to know what the property will rent for to do an analysis.  I like property that doesn't have rentals all up and down the block, but it is rare that a home this nice will pencil.  I would've gone broke long ago buying $280k rental houses that need work.  How much will the house rent for?  If less than $2500 it probably won't work for someone needing to at least break even every month.  Are all those repair costs necessities or just making it nicer @Umair Baig?

 I am still researching as to how much the rents are going for in that area, plus there are not many rentals up and and down the block. All the repair costs mentioned are to make it retail ready for a first time buyer home. The property is in good condition, but to make it rental ready it would need substantially less work than 30k.  

Originally posted by @Umair Baig:

Hello Biggerpockets!

I recently got a property under contract, when I blasted it out to my vip buyers list every single one of my buyers passed on the deal. Here are the numbers ARV: 375k repairs: 32k acquisition: $280k. I was receiving the same feedback; the spread was too tight. I am looking to market this property to landlords now as a buy and hold deal. Any suggestions as to what steps I should take next?

 also does the property need to be in a location where there are other rentals as well? or does that matter? 

Hello Biggerpockets!

I recently got a property under contract, when I blasted it out to my vip buyers list every single one of my buyers passed on the deal. Here are the numbers ARV: 375k repairs: 32k acquisition: $280k. I was receiving the same feedback; the spread was too tight. I am looking to market this property to landlords now as a buy and hold deal. Any suggestions as to what steps I should take next?

@John Hamilton thanks for that info! I've been trying to do as much due diligence as possible, the two family home does have its own address but it is on the same lot as the SFR. I am not entirely sure on wether there are legal issues or not. The SFR would show up on public records with the lot being 28,532 sq ft. I had trouble doing my numbers, because I was unable to factor in the two family home.

Hey BiggerPockets! I recently came across this wholesale deal from my mailing campaign, I dropped by the property today and spoke with the seller turns out there are two properties on one lot. One SFR that produces $1300/month. One two family home that produces $3300/month. I assumed this deal makes sense if I marketed it to landlords, my question was since I can't use the 70% method on this deal what formula do I use?? Any help will be greatly appreciated. Thanks.

Hey BiggerPockets!

I obtained this lead from a mailing campaign I sent out a week ago, I dropped by the property today and while I was speaking with the seller it turns out that there are actually two properties on one lot. One was a single family home approx 700 sq ft and the other was a 2 family home, all sitting one one lot of 28532 sq ft. While I was searching for comparable properties for the SFR, I had no problem doing that. On the other hand, when I tried searching the 2 family home I found no property information at all for that. The owner did mention that this is one of the few multi-family properties in Wayne, NJ and that there isn't many more of them in that town. Both properties get filed as one tax, so my question was if I found the ARV of the SFR how do I get the ARV of the 2 family home on the same lot with no records available. Any help will be greatly appreciated!