BiggerPockets

Two More Properties

Monday, April 13

In addition to getting REO houses directly from banks, I have also been networking with other wholesalers and marketing their properties for them. I have two Oakland SFRs for great rentals at about 15% to 20% CAP rates! In the S.F. Bay Area? Wow.

                     
7007 Orral St.  Oakland, CA 94621
SFR:  2/1            828 Square Feet
                                                                                                                           $68,000!
 
After Repaired Value: $130,000
Rehab: $5,000 - $7,000
LTV - including rehab: 57%

Vacant, Rents: $1200 to $1300 a month
CAP Rate: ~20%
 
Zillow value: $267,000
Sold 12/08: $127,000
Assessed value: $400,000
 
 ------------------------------------------

8630 Hillside  Oakland, CA 94605
SFR:  2/1             828 Square Feet 
 
$63,000!                      
                                                                 
After Repaired Value: $115,000
Rehab: $8,000 - $10,000
LTV - including rehab cost: 63%
           
Vacant, Rents: $1100 to $1200 a month
CAP Rate: ~ 19%
 
Zillow value: $190,000
Sold in 2007: $255,000
Assessed value: $331,000
 

The Good, the Bad and the Ugly

Friday, April 03

I'm going to need a more robust marketing system. I thought 500 "interested" real estate investors would get two or three of my wholesale deals sold, but not so so far. I have networked with a few other wholesalers to slightly better effect, but nothing fantastic yet.

 I did have one person make an offer on one of the duplexes. He came in undr price, but not too bad so I said yes. He asked for a contract and I sent it too hi. That's the "good". the "bad" is that he has now been out of contacty for two days without returning the contract.

The "ugly" is what is putting a damper on the whole thing. We are at the end of our contract period with the bank and while $2,000 earnest money had been enough to secure the property, they now want 10% down to extend it even a single day. They're ready to go to auction with it apparently. I don't have that available. So even though I have an interetsted party, his dragging his feet is going to let it slip away from both of us.

 On to the next one...

Looking for Advice

Monday, March 30

Well, it's been a rather unsatisfactory week. Got a very excited call on the Oakland properties only to be told that he was leaving on vacation and would get back to me in 10 days. Another call from a local wholesaler who buys four to eight properties a month, but who likes to work the North Bay: Napa, Sonoma and Solono counties, especially Vallejo and Benicia. If any of you work those area's and want to network together for my buyer, let me know.

Right now, our inspection period is up for one of the properties, so we'll have to pullout to get our earnest money back. I thought 15% to 18% CAPs in CA would be more desirable. Any suggestions out there for me from anyone? And of course if anyone had a network and for referrals, we could certainly team up. Good luck to everyone!

Kendrick 

MotivatedProperties.com 

Looking for Advice

Monday, March 30

Well, it's been a rather unsatisfactory week. Got a very excited call on the Oakland properties only to be told that he was leaving on vacation and would get back to me in 10 days. Another call from a local wholesaler who buys four to eight properties a month, but who likes to work the North Bay: Napa, Sonoma and Solono counties, especially Vallejo and Benicia. If any of you work those area's and want to network together for my buyer, let me know.

Right now, our inspection period is up for one of the properties, so we'll have to pullout to get our earnest money back. I thought 15% to 18% CAPs in CA would be more desirable. Any suggestions out there for me from anyone? And of course if anyone had a network and for referrals, we could certainly team up. Good luck to everyone!

Kendrick 

MotivatedProperties.com 

Slow Start

Wednesday, March 25

Just an update from my first e-mail campaign for my four wholesale deals in Oakland. Sent to 500 real estate aficionados, not “specific” buyers, but associates and people I’ve communicated with in the past who were interested in investing and real estate. Number of calls received: zero.

Ironically, over the same time I have gotten three e-mails from other wholesalers with properties at 60¢ to 65¢ on the dollar in Memphis, Atlanta and San Bernadino. And one of them was 60¢ BEFORE the rehab. Spoke to a wholesaler in Vallejo, 45 minutes and a $5 toll from San Francisco who sells at 70¢ of ARV. Thought these would get quicker interest.

Wholesalers and investors, what do you sell at and what do you buy at? Posting to more websites now…

MotivatedProperties.com

$120,000 in equity!

Monday, March 23

107 Catron Ct.  Oakland, CA 94603
 
Multi-family 4-Unit:  2/1   2/1   1/1   1/1
 
Wholesale Price: $238,000
After Repaired Value: $375,000
LTV - including rehab: 67%
 
Rehab: $8,000 - $12,000
Square Feet: 3,000
Vacant, Rents: $3800 a month
CAP Rate: ~ 15%
 
Recent "as-is" appraisal: $350,000
Zillow value: $450,000
Sold in 2006: $630,000
Assessed value: $655,000
 
Solid working class rental neighborhood. Inside looks great.
Vacant property, graffiti on exterior. Taxes are assessed at
$630,000. Buy and get taxes reduced by 60%.
Even with rehab costs, you're looking at a 15% CAP rate!
 
Watch video, and more info HERE

MotivatedProperties.com