All Forum Posts by: Scott R.

By the way, the place im looking at is lots plus homes and the cap is 34%..... so its rediculous. and if he has meters up and they pay their own utilities, its gonna be crazy cause by the calculation it should be worth 192k at 60 but if all the utilities are paid and stuff then u calculate at 70 instead of 60 then it jumps like 45k. and id be paying at the most 139k

im confused on the cap rate. I know the calculation but i heard from an investor the cape rate is the return on the banks money. so if i financed at 7% i should be looking for a 2-3% spread so 10% cap.

But then he talked about 17% to even 30%. I got confused because i was thinking ok does he mean taking the contract and owner financing it out at 10% and making that 3%? or just the calculaton needs to be higher than the interest rate by 2-3% at least to be worth ur time?

I want to get into the mobile home scene but here in California its a bit over priced so i would like to buy out of state. But in Cali I happen to run across a deal that is assumable, the owner only has 8 MH and 8 lots so its small but every unit is rented at 650-800/mo. He owns the units and the land. his asking price is under 150k!

I dont know the area well its about 40 mins from me. But i dont even know what to ask and why im asking it? here is a small list i can think of.

1-I need to see your financials (dont know much about reading them except income and expenses)

2- is the managment included in your expenses?
3- are tenants on seperate water and electricity? or is it all paid by you and you have a simple meter of your own and add it to their rent?
4- are there any updates the city wants you to have done or are they planning to rezone the area?
5- do you have the titles for all the homes?
6- are their any liens?
7- how much is owed if you have a loan?
8- how long is each leased still signed for and how long has each tenant been there?
9- how is the garbage and sewage paid?
10- what year is each unit?

there were a few more but i cant think of them this second. I just dont know exactly what to look for but even if the average pay came to $5700/ mo on a loan thats 139k, thats cashflow crazy! I dont know much about the town though either and need to find info on building plans, grown, etc. any advice on where i can find this also? Like citydata.com or something?

OK so i lost my job but purchased my home (suppose to be investment but forced to move from a death)with a line of credit from my step dads place because we were going to cashflow off it but i ended up moving there. the problem is the line of credit is at 17 years only about 4% interest (but is adjustable and i feel interest rates will be moving up fast when they do.) so my paymeny with HOA (condo) is $750/mo. I want to get a 30 yr fixed to drop the payment and it should come out around $550/mo PITI and HOA.

my problem is the HELOC, and i lost my job so i cant just go get a loan. My credit isn't over a 700 last time i checked. My mother and step father think they can just co-sign but i dont think it matters because the bank doesnt count unemployment as income half the time.

They want me on the title ( we paid cash since we used the HELOC so we have the deed, just need to rebuy the house i guess from ourselves.) so i can benifit from the tax stuff which is fine but i think they are going to have to have a loan and just attach me to it right?

yea they rejected the offer with a counter. My offer was 70K cash, close in 14 days, i will do septic inspection, home inspection, fire alarm inspection, and pest inspection, plus pay 100% of closing costs. They countered and said they would pay 50% of closing, 7 day inspection, close by the 15th because i guess thats as soon as they could close. I sent an offer at $80K and left their terms and said its my final offer.

the issue is a new agent just picked up the listing because the old agent had it for 90 days with no calls. the only type of loan you can get on the place in construction because there is no stove or heat source and safety issues with the deck so FHA and most conventional wont oan until those are taken care of. So i think the offer is decent considering the amount of work. The tax assessor says its worth $200,000 including the land. ofcourse this isnt the best source but to the bank it seems if they knew that and realized how much actually needs to go back into the home they would start to think.

i just have a feeling since they have a new agent on it she is telling the bank to hold off cause there is already an offer and she thinks they can get alot more. If she was smart, she would just sell the thing NOW! and move on to the next one. quick paycheck in the first 2 days of listing it? id be telling the bank to go for it!

sorry this laptop is hard to type on its small! Im putting in a offer on a home i want to live in tomorrow and putting my condo out on a lease option in a couple months. Curious to what you think. Im coming in at $65,000 cash and expect the bank to decline (if they dont good if they do thats what i expect) and i want it at about $80,000. But should i get a contractor friend of mine to give me a higher bid and a lower bid and send in the contractors estimate with the offer? Its a home a contractor was wroking on and went bankrupt! the bank owns it at $230,000 has it listed $100,000k less and cant even get one offer on it. I love the home and the area so if i can swing this deal like the last, im taking it. But to help convince them would an estimate bring them to earth?

i think im going to put an offer in this week. i want to make an addendum to the realtor standard contract. just want to protect myslelf. i guess i can just tell him what i want in there. i literally have a partner on the deal but he approved today if we get the right price. what do you think about this.

say you wanted to offer $100,000 to keep it even. This was going to be cash so say you write s check to send on with the offer (copies). one as $3000 they can cash right away when the offer is accepted (but have some sort of contingencies that if we decide to walk because problems are found they promptly give it back, any ideas?) and cash the $97,000 at closing. (this is cash deal). i mean everyone is different but seeing the money right there, maybe even a funds copy witht he checks so they see how serious we are, they will just bite right away. i think again someone knowing they have a REO that was a contractors flip he didnt finish on their books, they are ready to unload. i knw they are sweating cause its been 3 months and i was the only person wanting to offer cause its in the country(which i love). what do you think? will it have a little more power that way?

as in home owner association... there was a lady outfront that day walking her dog who actually was on the board. Just started asking some questions about the area and she spilled all kinds of info. they just redid my fencing area the other day. i think soon starting on the otherside of my condo siding and windows. they already did one side of it.

To start, im 24 years old and live in Sacramento, Ca. I came across a deal i was going to buy and rent if i could get it at the right price. Turned out, the person i was living with died so i needed a place right now! The property i found to buy and rent was going to turn into my home.

So i called an agent said, " show me this place." He met up with me at the condo ( made him get the comps of the last 3 mo because the market was mocing so fast ). So the condo up stairs just sold for $99k and is only 100 sq ft bigger but a little nicer because mine needed a little work. So i told him i want to offer $50k cash close within 14 days they pay all liens if there are any. So he thought i was crazy and almost didnt put the offer in until he called the listing agent and she said the bank is hurting on this one. So he says ok he will do it. Signed the papers and within 2 hours he calls me and says your not going to believe this. They accepted the offer already! He thought it couldnt be done. (most agents arent investors so dont think like one).

got my inspections and title search the next day! within 5 days of the offer i had the keys in hand and papers done! Now im fairly new to investing and i learned from a few investors dont let anyone get in your creativity. So if i can structure a deal because i knew there was a little damage that was an eye sore to the bank but an easy fix im going to do it. Here was what the bank didnt know. the HOA was just getting ready to do the entire outside of the complex with new siding, windows, and paint! the 2 apartments across the street just raised their rent to $925 each. looking foreward to doing my next deal but this time i wont have to move into it!