All Forum Posts by: William Baumann

 I don't really see a way to do this deal without some money involved.  Like others have said it doesn't sound like he is motivated, he just wants to cash out basically. 

The negatives I see are that there is a $4,500 back taxes owed, and there is no tennant at the end of the month.

One option I can see is to do a $0 down seller financing with either payments to the seller beginning after the back taxes are paid (you would need to find out if there is a tax lien on the property already first), or preferably the seller has to bring taxes current. However this means your property wouldn't cash flow or at least not very well for several years, or you can flip it and payoff the seller and you keep the difference.

Second Option I can think of to get in this deal would be to try and wholesale it to another investor, but I think you would need to get the price down to around $20K tops before they would bite.

Third would be to look at a hard money lender for the funds, do the deal at $25K to cover your costs to get taxes current then refinance with a bank or credit union.  Then you can decide if you want to rent it or flip it.  But make sure to talk to the banks first and find out their requirements and your eligibility, then talk to hard money and look at terms and go from there.

I agree with some of the above comments that if you tennant is trying to break their lease, your better off working out a win/win.  you don't want a pissed off or distressed tennant, it never ends well for you the owner.  If the break-in was staged and this doesn't get the out of their lease, what is going to be next?  A Fire? Just not worth it, work out a exit strategy with the tenant and be the good guy trying to help, not the bad guy trying to force them to stay. I am in the camp like @Stephen E. said.

@Jeremy Jackson Sounds like you might have found a unicorn!  Congrates!! I hope it works out for you. Keep us posted please.

@Vanessa Saddi I am new as well, but here is my take.  If you want to be taken seriously, build a serious image of yourself and your business. Brand marketing and you and your business are the brand.  Write down your plan, better yet, write out a business plan.  It will really help you focus in on what you are wanting to do in real estate.

Then start your company. File for an LLC, build a website, get business cards, define your marketing strategy, and then the two parts I have found the most difficult so far; building your team (realtors, buyer investors, investor sellers, lawyers, hard and private money lenders, title companies, tax person or CPA, contractors, trades, etc.), and finally, learn your market (where are the upper, middle, and lower class neighborhoods, what to home prices go for in those areas, if your planning fix and flip-what kind of amenities to buyers expect in each of those neighborhoods).

Once you have a good grasp on all that, decide what neighborhood or area you want to work in and start marketing those areas.

As this is your first flip, it sounds like your setting yourself up for possible failure as I am sure others will tell you.  With the limited funding you have your going to have to be very, very careful with the numbers.  I advise you to avoid using credit cards, you could however keep that option open as part of your contingency plan.

Have you talked to any hard money lenders so you know you can obtain the financing you will need?  What type of property are your targeting?  

Buy and hold could be an option depending on your hard money terms, you will most likely find that your property won't be able to cash-flow once you consider the high interest rate on hard money. You also need to think and plan out your exit strategy in the event you are unable to refinance.  Right now is a dangerous time IMO, to take a property with the intention on refi in 2 years as the fed has stated they are looking to raise interest rates.  Not saying it can't work, just something to think about in your planning. 

@Bernard Castillo You can go if you want, but you can find the very same seminar online (free webinar) for all these kind of deals.  They are all "scams", and I put scams in quotes cause they do give you information, just very vague information, unless you buy their course for anywhere from $97.00 - $50,000 depending which Guru real estate shaman you happen to be listening to.  

Mentors, just another scam IMHO. I spent 3 months looking for a real, no BS mentor that I would give 50% of any deals I worked with them on, and at minimum my first 3.  Know how many I found?  0, none, nadda, zip, zilch. I have contacted probably close to 40 investors that claim they mentor, and that they are the greatest and have the best system in the world to make guaranteed money in 30 days or less. BUT, they want $500 - $5,000 to make sure your serious so your not wasting their time.  Well, IMHO, if their system is so good, so successful, and so guaranteed, then they should be confident that they are going to help make me successful that 50% of the first 3 deals should be like money in the bank and a hell of alot more money than what they are asking. Of course they ALL, EVERY SINGLE ONE, has an excuse for that, and excuses are like .... well you know the end of that sentence.  

You don't need fancy seminars, fake guru's, and all the other "get rich quick" trash.  Read the forums here, ask questions, learn from real people who are not trying to sell you something, swallow that fear you have, and just go for it.

I came across this site Renovation Funders, has anyone here used them or know anything about them beyond what is on their website?

@Orion Walker Any updates on this deal, it has been about a month an I was wondering if anything came of the deal?

@Mitch Coluzzi I put out a high number (that is actually an estimate for my new geothermal unit at my residence), but didn't want to put a silly low number either.  I know it will not cost more than 10K. Period. If you going to guess, guess as high as it possibly could be so your not surprised later.

Don't forget to place an alarm on the sump holding tank if you have a sump pump.  I had this problem at my residence where the pump impeller broke.  Thankfully the alarm went off as the water level got to a certain point in the tank.  If not for the alarm, I would have had a heck of a mess.

I got my alarm from Lowes for $20