Our office is located in the Roebuck, AL area, and we would love to form a relationship with you, and get you that list your speaking of on a daily basis.

I now see you're looking to form a PM biz vs. find one to manage your stuff.

Here is how it went.March 2020Property: 2 unitSale Price: $135,000Renovation Cost: $50,000ARV: $215,000Rents: Increased from $1,500 to $2,375Unit Count: 20May 2020Property: Single Family HouseSale Price: $130,000Appraised Value at Sale: $166,000Loan: $132,800Unit Count: 21July 2020Property: 2 unitSale Price: $100,000Renovation Cost: $50,000ARV: $156,000Rents: $2,320Unit Count: 23July 2020Property: Single Family HouseSale Price: $145,000Appraised Value at Sale: $183,000Loan: $146,400Rent at time of sale: $1,600Renovations: $25,000ARV: $235,000New Rent: $2,100Unit Count: 24August 2020Property: 3 unitSale Price: $115,000Appraised Value at Sale: $190,000Loan: $152,000Renovations: $35,000Rent: $2,625Unit Count: 27August 2020Property: 7 unitSale Price: $485,000Construction loan: $150,000ARV Appraisal: $810,000Rents (pro forma): $8,155Unit Count: 34August 2020Property: 3 unitSale Price: $112,500Appraised Value at Sale: $224,500Loan: $179,600Renovations: $100,000Rent: $3,495Unit Count: 37September 2020It was all base hits up to this point.  

I have ran the number and got the below results.Total Cash NeededBy Borrower:$76,000.00 Monthly Income:$4,400.00Monthly Expenses:$3,268.14Monthly Cashflow:$1,131.86Pro Forma Cap Rate:8.40%NOI:$34,871.00Total Cash Needed:$76,000.00Cash on Cash ROI:17.87%Purchase Cap Rate:9.18% Total operating expenses:Mortgage expenses:Vacancy:$132.00Repairs:$132.00CapEx:$132.00Insurance:$420.00Management:$132.00P&I:$1,774.06Property Taxes:$446.08Lawn mowing:$100.00

How do you form a relationship with the hotel operator and how are they compensated?

Thank you again for the information, if I have further questions for you during the investigation I will certainly reach out.Best regards,Frances Hlawatsch | Financial InvestigatorState of Oregon - Real Estate Agencywhile I did not interview the regulators I simply sent them a flyer I got via e mail form a known wholesaler who never closes and is not licensed.. 

In general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value) Don't allow for your own independent property inspection Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors) Require you to pay for any renovation upfront Sell only in cheap. low end neighborhoods Don't accurately represent the neighborhood/property classification Don't have consistent rehab standards for all properties Don't provide a scope of work for the property Can't provide references of repeat investors Require you to close before a tenant is in place

It costs only $125 to form a PA LLC with no renewal fee.

I believe in your recommendation, I envision something like a second mortgage form as a term loan. 

The solution is having a good pro-forma built that you can plug properties in to.