All Forum Posts by: Ben Visser

For my final class at Weber for my bachelor's degree I need to interview some realtor estate professionals/investors. 

I can do it via phone and estimate it will take about 20 minutes. I'd like to complete it this week to be ahead of the game. 

Anyone willing?

My final class for my Professional Sales degree at Weber State is to go out and use my sales skills and turn in reports and activity logs. I'm looking for a current real estate investor willing to let me find them some deals and participate in negotiations.

I do not want to get involved in deals you have right now. I want to only plug into your system enough to bring you deals. If you agree to have me help I would not work my own deals during this time, unless you give me the go ahead on something you're not interested in.

About me:

I've dabbled in real estate; I've house hacked and did a small flip on a condo. I'm currently house hacking a house I bought in May. It will be a buy-and-hold for down the road after some rehab and finding another home. I'm not in a place today to get another property, but would enjoy working the business and learning.

I work full time and have a couple of classes during the week. I'm offering 5 hours a week of my time to work on finding deals. I'm interested in wholesaling, subject to, and buy-and-hold strategies, but open to other strategies to work on. This is a sales project so I want to be on the front lines

I'm not looking for any kind of payment beyond new deals I bring to you and close. I'm thinking a small percentage or finders fee. We aren't talking big $, just enough to offset basic costs and give me incentive to add to the piggy bank. Again, we are talking a minimal amount. I believe the financial incentive is a motivator to me and I hope it shows you I won't waste your time with deals that aren't going to make you money.

If you are interested in talking further please let me know.

Thanks,

-Ben

I have an assignment to interview someone in the business or financial field for my entrepreneurship finance class. 

Here are the assignment details:  

"This assignment requires you to develop a “mini-case” about a lender, investor or entrepreneur. Note that this assignment is an individual assignment. The lender, investor or entrepreneur should be somebody you can personally contact. You may not use an immediate family member. The primary goal of this exercise is to give you added exposure to the lending or investing process during the early stages of creating a new business.

Anyone up to help out with a short virtual interview?

In Business As in Life, You Don't Get What You Deserve, You Get What You Negotiate by Chester L Karass

Update:

Had a local company clean out the drain enough that we can actually use it (carefully). They put the camera down and say there is a partial collapse out in the street, just before the city lines. Estimate is $19k to fix it all. Still researching whether that is the only way to do it and if any insurance will cover it.

My agent is doing what agents do after they've gotten paid...nothing. We sent the estimate over to the other agent requesting it be fixed (not expecting them to agree, but figure it is a first step) and will be talking with an attorney.

@Manolo D. Can you go into more details about BRE and the consumer concern part?

Closed on my first home (ower-occupied for now, house hacking with room mates) just a few weeks ago. Settled in about a week ago and now my basement shower backs ups when water is used anywhere in the house. After getting a camera down, there seems to be a whole and then issues further down the line.

Called so many plumbers I've lost count. One plumber referred me to this company that says the specialize in main line repair and insurance. Initially I have nothing to go off, but their word.

I have homeowners insurance, a home warranty (but they have already said "no"), and Sewer Guard warranty through the home inspectors package.

$7600 in repair estimates

This plumber says they do this all day long. Says he can get $5k from homeowners for access plus damage done to anything from the flooding. He states he has used HomeServ, but never Sewer Guard, but thinks he can get the $2k max from them.

He also stated this wasn't a new issue and should have been disclosed by seller. After moving in, the neighbor asked if my basement was dry and stated they had flooding issues in this house every few years (lesson learned: talk to neighbors before offer). Based on that info and what he saw he said their are grounds to go back to the seller and potentially sue for non-disclosure.

The plumber said the selling agent's broker should have insurance to cover this kind of non-disclosure and that they would then go after the seller instead. Anyone ever heard of this? The previous owners had to know there was an issue. The guy became really shady just as we closed and tried to back out because the market has risen so fast.

My main questions:

1. Do I trust this plumber that says 95% of his insurance claims get paid?

2. Do I raise hell with the seller agency and demand their insurance covers it (and does this option really exist?)?

3. 2nd estimate from a different plumber was about $6500, but has no insurance experience. Should I get more bids or what step to take next?

I found a thread about a year old with no recent responses. I thought I'd ask for updates here. 

I'm interviewing an attorney tomorrow.  Looking for other suggestions in SLC, Utah as well. 

Who have you used? Why do you like them?

I prefer an attorney that will give me enough rope to do ground work,  legal basics,  etc, but can keep me from hanging myself. 

Thanks in advance. 

@Eric H. Thank you for all the info. I do think giving him a couple of options increases a chance of a "yes."

I do need to do more research on other costs such as how to figure the costs of ownership/holding (CAP, vacancy, etc). That is an area where I'm lacking knowledge. Most of the figures are rough. Gross rents I would estimate to be $1800 after repair, $850 while only able to rent the front home.

I'd have to research title a little more, but to clarify what I know he owns the home, but sold it under seller financing back in 2011, so, in some regards, what is owed is based on whatever terms he set on his own note. There should be some flexibility then.

As far as the technical side, let me see if I understand the math. So, I could set an amortization schedule of say 30 years, 9% interest, but a balloon payment in 36 month. That would give me a monthly payment that is more feasible and he gets 9% interest on his note with the balance paid in 36 months (refinancing to pay him off)? Is that the right concept?

On the wholesale side, from what I understand from the podcasts and some research, I would make the cash offer due in ___ days with the right to assign title. Make the offer at roughly 50% value and then decided what I want to have for a fee (sales price to investor at 60-70% value). Is the norm ARV or pre repair value on those percentages? Then, I hot marketing and find an investor wanting to buy. Is that the right sequence?

@Don Konipol Yes, there is some major gray areas on where he legally stands. He seems assured it will be no issue, so I will simply hold him to that in the sales contract. In his last counter (I put in a full offer under conventional financing as a way to get him talking) he has things lined up with a title company to navigate the issues. At this point it I think the deal is only good if the right protections are in place in case he can't produce a clear title.

I'll probably post my offer here so more experience can verify I've dotted my "i's."

Thank you for all the advice so far.

I posted a few weeks ago about doing a Sub2 offer on a duplex in trouble.

Rather than throwing offers back and forth and guessing who were the real decision makers, I asked to sit face-to-face with the listing agent. He explained that he was the note holder and had listed the property after the deed holder missed payments, was deported to Mexico, and a fire on one of the homes left it uninhabitable. He termed it a "short-sale." I'm not positive the legalities of it all, but he seems to be in the position of influence now as the property is empty after he evicted the tenants. 

Sub2 isn't an option now. He states he just wants out. He's been burned so bad and the property has been damaged that it is an energy drain. On the other hand, he seems determined to get a reasonable price and states he won't do seller financing at all.

State of property: 2 homes, 1 parcel, originally permitted by the county and listed as such, city hasn't made an official determination. Property built before city existed. $125 and a few days and the city would make a determination.

Front house 2 bd, 1 bath, 8-900 square feet. Rents average $8-850 for that area and size. 

Rear home has solid base structure, roof burned on 20% of roofline. Needs furnace, electrical, new kitchen, new bath. It is a shell, but a solid brick/cement shell. 3 bd, 1 bath. Rents would be $950-1100 after repair.

MLS listed for $150k, agent/note holder said he'd take less. His note was recorded against property in 2011 for $150k.

Salt Lake is a ridiculously hout market, yet the property is sitting on MLS a couple of months. He has had cash offer, but too low to consider at this point. He seems stubborn, but also a bit worn out.

Here is my current plan:

Ask for seller financing, offer a down of 5% that would cover his expenses (back water bill, small lien from deed/owner). 

EST ARV $225-$250k (I'm at $225, agent is at $250)

70% is 157,500

Agent estimates repairs of $30k

Offer $130k on seller financing for 3 years with balloon at %5.5

Payment (w/o taxes and insurance) $768

Paint and carpet needed in front home, but could be rented $850

I'm nearly break even on monthly expenses til the back is finished, then positive $700-$900 gross

In 3 years or less I could refinance based on equity and rental income.

Deal or No Deal? Or attempt to find an investor to work with?

He said no to seller financing initially, but I wonder if the "no" might change as he gets more desperate to unload. Maybe he would say no again, but with regular contact he might see I'm serious enough to make this happen.

Sorry for the lack of clarity. The funds I'm referring to are cash for the down payment,  cash for repairs (paint,  carpet,  etc), basically acquisition and maintenance costs. 

The debt wouldn't be in my name due to the DTI issue I'm currently having. They would be thmortgagees.