All Forum Posts by: Chris Gawlik

Thanks Jon your usually one of the first people to answer my posts. You always answer very quickly as well. Your the man Jon.

This was kind of poor planning on my part this deal was going to be a flip and turned in to maybe i should hold it and just refi my cash out. Now Im starting to rethink that because of the hard money to conventional / seasoning requirements. I owe 5k to my mom and dad and wanted to get that to them. Embarrassing but I'm pretty broke rite now.

Any ideas from any one would help. I would really love to hold this deal and get some cash out but waiting a year for it isn't possible. I guess ill have to sell it unless any one has any ideas.

I purchased a 3 unit a couple months ago under my LLC. It was a strange acquisition process and this is how it went down. I bought the property cash because that was what we originally offered and they would not let us change the terms ( we tried to use hard money ). I had to borrow 70k from my parents and the rest of the cash was my own. So i did a hard money refi on the property and paid back my mom and dad.

The refi was a 12 month interest only balloon at 12% and cost me 5 points. The property comps out for around 130k low side 140k high side. We purchased the property for 93k and put 15k in rehab into it.

My first question is, is there any way to get conventional financing under an LLC? Am i correct that i would have to transfer the property to my personal name to get a conventional refi? Can i get a cash out refi, or does it have to just be a non cash out refi? What is the seasoning requirements for this property for the conventional refi process to take place?

Thanks for your time.

Yes he has started the eviction process with the current tenants.

I have a 4 bedroom 2 bath home that i would like to make an offer on. It was a lead that i picked up from some mailers that i sent out quite a few months ago.

Here is the situation ill keep it as short as possible. Senior gentlemen who lives 2 hours away from his rental property, doesn't want to deal with the property any more. Tenant and family is a year and a half behind on rent still lives on the property. I walked the property and met her and her family which was very uncomfortable i posed as the repair man.

This home was build in 1960 many roof leaks could need a new roof ill have to assume worst case scenario and say it needs a new one. One part of the ceiling was sagging. Looked like a lot of dry rot from outside. I'm not that savvy at rehab yet so that's a problem in it self. Ill have to say 15k to 20k rehab for flip if your going to hold 10k to 12k. Ill do either depending on the out come of the offer.

He looked on zillow and thinks his property is worth 163k. He knows about the roof leaks and damage so knows there needs to be some repair done. I used the MLS to show him comparable property's sold in the last 4 months before i submitted my offer to him. I think his property with out the repairs is worth 120k low to 130k high given the comps in the area ( way nicer property's than his built in the late 90's selling for 160k and nicer areas. )

Here's how the conversation went down. I told him that i could do two things for him. I told him that i wanted to buy his property at a discount given the repairs that need to be done, or that my wife could list his property because she is a realtor ( don't want to do that i want to score a deal obviously ). I asked him if he would offer owner financing, and he said he would. 5 years was mentioned in the conversation. He told me that he doesn't want to deal with the repairs because hes old and lives too far away. He doesn't want to deal with the tenants any more either.

I'm very new to real estate and don't know how to formulate a proper offer including a cash offer and a owner financing offer, that i can profit from. Any advice would help, i know it was a long post and there is no exact science to this. i was going to take 70% of 125k and minus the repairs and just guesstimate 15k in repairs. So that would be 72.5k, is that to low or to high? It rents for around 1800 to 2000 dollars a month. How should i structure a good owner financing offer?

The last thing he said to me was that he likes to barter and trade and said he would counter my offer, which is kind of strange but that's what he said.

Thanks for your time every one sorry for the long post talk to you soon.

I'm in the exact same spot you are and would like to know as well. Just finished rehabbing a 3 unit. Not trying to take over your post here but should i rent the 3 unit before i sell it or keep it empty.

Hope you sell your deals soon Jonathan. Good luck.

i should have posted a link i think i did this riteAny Good Books

Here is my post on the exact same subject these books were really good reads i read most of them that were recomended.

http://www.biggerpockets.com/forums/84/topics/64111

I'm starting to understand there is no exact science or math equation here. I'm doing my best to feel out if there is a proper spread in a deal or not. The math helps a bit on the initial search for the deals.

Being so new and not knowing rehab cost's is a bit of a disadvantage, but there are a lot of people willing to help me and give me good advice that i have been networking with.

Walking the properties is fun and the more deals i do the more experienced i will become.

I'm trying to learn from other people's mistakes. I know I will make my own mistakes on my way to financial independence ( i hate my freakin job ) but all i can do is learn from those mistakes, try not to make them again and move on to the next deal.

Yes Jon what is a hold open? Thnx for the input guys.

Thank you guys for your quick reply's. I have been pushing my real estate business really hard. Its amazing how much help there is out there from people you hardly know. Thanks for the advice guys.

The 65% of ARV makes a lot of sense and will help me out big time analyzing these deals.

My wife will have her real estate license by next week, so we will have MLS access soon.

I have really been hitting the streets hard and have been making multiple offers on deals. Seem kind of strange to not know the basic math, but i think hitting the streets and making offers is more important than reading books. Its probably best to do both.

Any way i just closed escrow on my first deal its a tri plex in Apple Valley that i picked up for 93k. Im nervous and excited. I have been making offers on property's daily and know i will score my next deal soon.

Thanks for all your help guys good luck on your investing.

Im very new and would like to know if im doing the math rite. I realize that this is just the basics and there are many different scenarios and areas that mite change this math and make it improper to use, but am i even getting the basic math down on searching for deals. This is what i have been taught so far on how to find deals to make an average 20k profit from each deal. Im searching for 3/2 SFR's and am finding 5 good comps at least 3. Once i think i have found my comp sales price i multiply 11.25% of my comped price for closing cost, sales commissions, marketing, and escrow fees. Subtract that number from my comped price. Take a look at the place and estimate or get estimates on rehab. Then subtract this number from (comped price * 11.25%) and if i don't have a 20k spread there or profit margin i readjust my offer or walk away. Is my math wrong here keep in mind this is just the basics. I also understand that you guys may get better deals / fees waived ect. but im very new and don't get those cheaper commissions or fees waived yet. Any help here or advice on a different way or how you do it would be really great. Thnx for your time.