I don't want to hit the brakes - Fix/Flip + Hard Money
Hey All,
I found a landlord who is in his late 80's and is begging for someone to get him out. He's got two beat up houses (eviction cases) that he needs cash for, but would hold paper on the other 10 properties so he can keep a little income for the remainder of his life. The notes were my suggestion, not his idea.
I'm trying to get into the fixers, but my personal situation may limit my ability to do the deal. I wanted to jump on here and get some advice.
Deal 1:
SFH 2/1, 800 sq ft.
asking 38k
approx 20k in repairs needed (Would confirm during escrow)
FMV (based on recent comps) = 79k-87k
Great rental neighborhood.
Deal 2:
Duplex 2/1 + 1/1, 1500 sq ft.
asking 62k
Approx 13k repairs (would confirm with contractors during escrow)
FMV (based on recent comps) = 110,000
Great rental neighborhood.
The Duplex seems tighter, but, his words, he would entertain ANY offer right now, he's just beyond his ability to deal with these properties (mentally and physically).
I would roll the profits of these as down payments on his portfolio which is currently 100% occupied aside from these two.
ISSUE:
1. I am just getting back on my feet after my wife lost her job. I'm not in a position to bring any cash to the table, and my credit isn't the easy to lend 740 it was before the job loss. i'm in a position where I can find the deals, but need a partner or someone to come in and work with me. I have yet to find such a partner.
2. Most of the HML's I have found online want some cash upfront or don't lend in my state (South Dakota)
3. I'm not very well networked in this industry anymore as I dropped out in the early 2000's during a divorce and am just re entering REI as a relative Noob.
QUESTION:
Does anybody know of a great HML that might look at the deals? I've contacted a few I've found with 'The Great Oz(Google)'. Do you have a suggestion of where to network with people in the industry without a REIA or MEETUP in the area? I've started, but want to accelerate my efforts.
Most importantly, what would you do with this?
1. walk away, save up and push for a deal in december with some cashola?
2. Wholesale
3. Some magical solution my limited mind isn't seeing right now?
Thanks to all who read this, hopefully a discussion ensues that adds value for all of us.
And thanks in advance to anyone who has advice--Even if it's not the kind I want to hear, I need the kind I need to hear from peers and mentors who have walked the path....basically if you are green and reverse your sentences in an oddly muppet like voice, chime in.....or if you're just a Jedi of REI, that's pretty dang cool too. :)
Ryan