All Forum Posts by: Andy Chu

We own a real estate company that sells real estate with a property management division. We run all of our divisions completely separately. Therefore one division is not affected by the next one.

The question to ask is that if the property manager has a division of labor. When a company/ division hits over 50 properties can they send out all the statements in a timely manner, answer all repair requests and get bids, show properties and list them in a timely fashion, and finally send evictions on the 6th day.

Never say never. Depending on location and how much repairs are needed, that deal may be able to squeeze 25k out it. If repairs are 10k, it may be an okay deal.

A good deal could mean anything. I've had client say that they wanted a good deal and they turned out just wanting a turn key property. Be specific in what you want.

For Instance:

I am looking at a cash on cash return of X% which assumes the following items.

The thread is getting a little too specific. I PMed you some info, hopefully it helps.

Defintitely take the no name one. I've never heard of anyone not showing a listing because it was listed by Mom&Pop Realty. Most of the time, the no one names have less agents and can give the one on one if needed.

I say sell. There's nothing worse than feeding a cash flow negative / neutral property. You still have to do work on it but it doesn't pay. Luckily you have equity in it and if you can net 150k then do it.

If the capital gains expires, then the house needs to appreciate 15% to 402,000 to net the same 150k ( assuming tax bracket at 25% and cost basis of 200k)

Short of going to a real estate agent to do a BPO, everything else is a rough guess. If you want to smooth out your guessing work you may try yahoo's online valuation. They use both zillow and Eappraisal (2 is better than 1).

http://realestate.yahoo.com/Homevalues

Ultimately, there is a reason why very few banks use AVMs (Automated Valuation Models) for lending. I saw Wells Fargo do it once and I believe their number was off by 30K on a 250K house. The number is not accurate and does not take into consideration condition of the house.

Unforetunately or should I say foretunately, I'm in the business of flipping and not property management. In reference to this thread, it allows the ability for brand new investors to try their luck out on these types of liens/deeds.

The ethical concern needs to be addressed up front. If one discloses to the tenant that the property is currently owned by the owner but subject to foreclosure and the tenant is okay with it, then that meets that aspect of it.

Legality: The deed is in the owners name and they have every right to do what they want to the property (unless it is illegal to rent per city ordinance or HOA) .

It just makes for an interesting debate becuase this robo-signing fiasco has caused many off-shoot business models that actually work in the interim.

That's exactly what I'm thinking Michael. For beginners, they have a small investment for a limited amount of time. If you get sick of it, the cost is fairly minimal. Did I miss anything?

That may not work. Depending on the landlords policies, they may send immediately to collection. See if your state has a statute to allows you to make immediate repairs on "Health and safety" items.

However, as hard as I want to justify this one, I don't think it would hold up in court.