All Forum Posts by: Alexander B.

Hello BP!

Which is better buying and renting commercial property or residential?

@Robin Boyer save them and buy more and they dont necessarily have to be the best neighborhoods just rentable and look into commercial the sweetest I mean I should write a book about this but comercial awwww yesssss the best and here is the reason why say i have 2 deals on the table one being 2 flat mixed used and the other being a 2 flat residential. We will say both ate selling for same price but here is the difference now potentially both nay have the same selling value depending on area but in some cases commercial can be unpredictable depending on the buyer and changes woth new developments in the area. Also it less expensive to fixed the mixed because the store is a shell with 4 walls, 1 ceiling 1 floor thats it besides the apartmenton the second floor. The 2 flat residential has 2 apartments 2 kitchens 2-4 baths and way more walls thus meaning more money, Im a big fan of commercial.

@Robin Boyer no but I think we have a program like that here. Here in Chicago we also had a program that allowed you to pick from a list of properties that were on the way to be torn down and the city would give you the property just as long as you proved that you were qualified to to fix the building 

@Mohammad Alabsy Hello thanks for your post to answer your question these types of deal are geared towards people wgo may have some but not the credentials for a typical loan so they but it with the intention of fixing it up to either move in, sell, or refinanace, waht ever the case may be it has to be an idea thats works for them. That type of deposit is necessary to attracr clients with capital. Remember they need to do repairs to the property so you dont to waste your time with someone who cant afford the project.

@ Robin Boyer good luck buddy and my golden rule never buy or sale anything without a real estate attorney and make sure they are knowledgeable and wiiling to explain things to you.

@Robin Boyer you go Rob finaly someone with some sense, their own brain, but dont forget Robin check with your county or any county about buying outstanding property taxes, always look beyond the common way of real estate investing thats how you win. 

@Robin Boyer Very true Robin as a buyer its not the best deal. It is designed to protect the sellers investment. It is very risky because normally its for people with bad credit, or low income and they may family members or friends helping them obtain the property. So, because of those reasons the contract is designed to help and the buyer obtain the property and also protect the seller. In my opinion and its just my opinion, when you rent you have the rent you collect minus insurance, maintenance, property taxes, possibly a water bill, and any other problems that may occur during the time of the rental. With the land contract you have the contact payment minus nothing, buyer is responsible for everything. But I am not pushing my idea just explaining my theory. Thanks for your feed back

Just like Donald Trump became president, the Financial Act will pass

@Raymond the deal you purchased at $35 then added another $20 is a great example because how i would have structured your deal was simply buying it for $35 and not spend another dime. Depending on the market values in you area, lets say the fair market value in your area after repairs is at least $100,000 it gives you room to sell it asis for lets say $60,000, you accept a down payment of $7,500, you have to figure out what fair monthly payments you are willing to accept I figure about a $1,000 at 0% interest is easier but in that area you would have to figure out whats best for you considering the area. And it is even good to considering the refinance at the very beginning excuting your exit strategy from the start by encouraging your buyer to talk to a loan officer about what they may need to make sure they will be ready for the loan. This is why you make your terms undesirable, it is to encourage the buyer to refi as quickly as possible. By putting them on land contract and allow them to put their on $20 grand into it leaving them room for equity after their investment again if it appraises over $100,000 after repairs. Guess what you get more money in advance, you have no liablity because the buyer will be responsible for everything, and you just helped the buyer make an investmnet because now they have purchased a piece of property that has equity so now they can refinance because now they have an asset. 

But this was just an example I understand you put $20 in because you lived there for awhile.

All returns wont be the same and of course the properties I find again are vacant forclosures on a auction that most investors may not want because of the area. The most I spend on those kinda of deals range from 12 to 20 thousand, and sometimes depending on the area those 6 to 9 thousand deals happen go on auction.com check it yourself they may have something in your area. Look for properties with a starting of $2,500 or less you would be surprised. And check with your county clerks office and ask about property tax sales you will get property even cheaper.