All Forum Posts by: Andrew Scott

Thanks for the help gentlemen!

@Bruce Lynn, speak of the devil, I was planning on using Trinity Valley, as they have the cheapest fees out of the 3 or 4 title companies in Athens. Any reason you mentioned them in particular?

Hi all,

My grandmother passed away last year, and I'm buying the house that they built in 1965. It's also the house my mother and her siblings grew up in. They've spent the last year being nostalgic about the place...having sleepovers and whatnot. And they can continue doing that for as long as they want (within reason). However; I'd like to go ahead and buy it now while rates are still low. They had an attorney take care of probating the will, and selling the house is the only thing left. Everything passed to them equally including the house, and they are each co-executors.

 My lender said I'll need to have a contract signed before I can lock the rate. My question is on the contract, do we write in my mother and her siblings as the Seller, or "the Estate of Grandmom" as the seller? I don't think the title has been put into each of their names, as the appraisal district still listed it with Grandmom's name, and mail is addressed to the "estate of Grandmom". This is located in Texas.

I know this is a question for the attorney, but he's very expensive and would charge a whopping amount for this simple answer over a 1 minute phone call.

Thank you!

@Derek Carroll Thanks. I'll pm you. 

Napkin math here. Assuming I could get a comparable loan to what @Aaron Montague mentioned, 

• 700k purchase price
• 20 year amortization
• 6% rate 
• 30% down=210k
• 490k financed
• 42k in yearly payments

• Gross rents 137k
• sellers reported expenses= 30k
• 50% rule expenses= 68k

DSCR=68k/42k=1.6

The owner has had the property for 9 months. Hopefully, he's kept good records.

 Thanks for the help.

It seems strange that banks wouldn't do a purchase loan under current circumstances, yet they'd do a refi almost immediately. Just the way things are?

If we paid cash, how long would we need to operate it before eligible to cash out refi?

Thanks for the info. 

The 3/4 rehab is all that was needed. The roof is 3 years old.

The operating costs are 30k/yr not including reserves for big ticket items and vacancy. 30k includes water sewer trash, taxes, insurance, and about 5,000 extra for misc.

Obviously, calculating things using his numbers paints a very pretty picture. However, Using the 50% rule provides a pretty picture as well.

The 20 year amortization. Is that for a 20 year term or a balloon payment at some point?

I have two partners that are interested. Together we'd have enough to pay cash for the asking price. I'd love to get it financed though. 

Assuming the note is not something I had thought of. Although, I don't think he'd go for it. He mentioned wanting to sell this place in order to buy one in his home town. He drives 2hrs to manage this one himself. But I'll definitely inquire.

A guy bought a 22 unit class D apartment several months ago in a class C area from absentee owners. He's done the heavy lifting: evicted half the tenants, rehabbed 3/4 of the building, raised rent from 400 to 520, and signed new contracts and filled the building. 

He paid 400k for the place and is wanting to flip it for 700k. I believe he bought from the previous owners with seller financing.

I asked him for tax returns, profit and loss statements, rent rolls etc. All he could give me were utility bills and gross rents. Since he's only owned the property a few months, it's understandable that he wouldn't have much in records yet, and apparently the previous owners didn't provide him with any records either.

How would I approach any lender with just some pro forma estimates from the seller? Since he bought it with seller financing, all those documents weren't required to do the deal.

Idk if this guy is just hoping for a cash buyer or what... 

thanks

PDFedit is opensource

http://sourceforge.net/projects/pdfedit/

Hey Jorge!