All Forum Posts by: Alex Montoya

Thank you, Marc!

Hello BP community,

I've been researching the logistics of wholesaling and have even worked for a niche wholesaler but I would like to be more entrepreneurial and go on my own.  IF you where your own wholesaler, how would you market off- market deals to investors? Is that why there is the find deals tab in the BP website?  or are there more efficient ways to market.

I came across a Triplex about an hour from a large and small city. The cash flow from just 2 units currently rented is 300/ month without Property Mgmt. no comps but willing to do a 2 year balloon interest only payments seller Financing reflected in Cash Flow.   House needs inspection but seems like in good condition with semi updated all utilities ( 7-10 yrs). Its in a small town ( 450) population steadily rising ( 25/ year) and house is roughly 80k....



Being there are no comps, how do I know if this is a good deal? 

Thank you both for your input on this.  This is very helpful for me to bring to the conversation with the seller!

Good Morning BiggerPockets community,

I got referred to a seller who would like to sell his duplex Contract for deed to help mitigate taxes.  I need help figuring out if this is a deal worthwhile and if I should finance the DP somehow.  I have never done a Contract for Deed before.. Here are the Details:

Proposed Market Value from seller 295k

Built 1950

Duplex each side 600SQft 2 bed 1 bath

current rent 1100/ unit.

Market Rate 1300/ unit leases expire in 2 months.

Roof updated 2020

Furnace 2017

No A/C

Electrical and plumbing recently updated

Unfinished basement with room to add 1 bed each side with instillation of Egress.

Seller wants 10-15% down and paid full amount over the course of 5 years.  (This is proposed in initial conversation with seller, same as proposed price.) ( I am assuming this is a balloon payment)

I currently don't have money for the DP of 10-15% but I have enough cash reserves to acquire this and maintain my other properties.

Property is in sellers market.  My duplex (3 streets away) has comps selling for 50k higher than what I purchased mine for 1 year ago.

If anyone is nice enough, can you enlighten me on how I should be looking at this? I have a few more questions getting into specifics:

• Should I be looking at unsecured debt for DP and pay with cashflow after July 31st, should I be looking for a partner on this? 
• Would my payments over the next 5 years be very similar to what the current rent is?
• Seller has a total of 11 other doors, should I look for a partner to talk about all of their real estate. Sellers are 70 & 72 and manage all units by themselves but would like to seriously scale back and avoid taxes the best they can.

Any help would be appreciated.

Alex Montoya