All Forum Posts by: Benjamin Fredricks

I've always had pretty good success with calling FSBOs, but also try calling management companies in your area.  Ask if they've got any owners that are tired of their properties or are looking to retire.  You can't call just once though.  You need to call them a couple times a month to keep your name fresh in their mind.  Go see them.  Take them to lunch.  If you know a realtor, ask if they can pull you a list of expired listings.  These were properties that were either overpriced, or in poor enough condition that someone didn't want them.  They could be motivated so go knock on their door and see if you can have a conversation.  The key to all of it is just consistency and doing the work.  Don't stop

If someone looked at it 2 years ago and it's stayed on the market, see how motivated they really are to sell it.  If they're older, I would definitely try to owner finance it.  One thing I learned about working with seniors as a financial advisor is that they like income, but don't like headaches which could be a reason they're looking to move on.  Get it for as little money out of pocket as possible so you can make the repairs necessary.  The question is, if you make some decent repairs to it, can you increase rents?  See what other properties in the area are going for and if they're vacant, go look at them to see the competition for amenities, etc.  Good luck!

5% for the interest rate seems a bit low for the amount of money you're making elsewhere in the deal.  They've got to either put more skin in the game that makes you whole or make it worth your while from a payment / cash flow perspective.  You hold the cards in the deal since you're holding the note.  If they don't like your terms, and you're not in a rush to sell it, there's only one thing to say...."NEXT"!  Good luck!

Are there any property managers in the area that can help you figure out rents?  The other thing you could do is to call classified ads that are renting properties.  Go check them out and see how they compare to yours.  This way you can get an idea of how to price them so they will rent fast and be profitable for you.

We have the deeds on over 550 properties across 32 states. These are properties we've acquired from banks and auction companies. Most are SFR but we do have the occasional 2-4 unit property. These are wholesale level properties that usually need some form of rehab but they are usually priced at 40 cents on the dollar or less to leave plenty of room for profit. You can reach out to me via my website for email to check out our inventory. We will work with talented wholesalers that know what their buyers are looking for and those that can do a double close, but we do not do assignable contracts. Cash only deals that are transferred via quit claim deed so you need to understand that process and the risks associated.

Thanks,
Ben 

www.TheForeclosureStore.com

[email protected]

Facebook: @TheForeclosureStore

Instagram: @TheForeclosureStore

 Hi Juli.  Would you have an interest in picking up another rehab project on Wolfe Street?  I've got a large 6 bedroom home that I just picked up in a package deal from the bank that I'd like to move since I live out of the area.

 Lance,

The duplex may come available again here shortly. I've got someone that bought it on a lease option but it may not work out. I can let you know if something changes but likely won't be for another couple weeks, if at all. I do have one other SFR property now available in St. Louis located at 4909 Lexington Ave. It's a 2/1. Let me know if you'd have any questions about that particular property.

Hello BP community! We are starting off the year with some big goals and are going to need some help to achieve them. I'm working to find a lot of subject to or owner financing deals and would also like to have a private money lender in place to help fund our deals as needed. We have an outstanding portfolio lender that has helped us with many of our properties and will continue to do so, but I know we're missing out on private money. Quite frankly, I would rather help a regular citizen make some money with their IRA than a banking institution. I'm still holding a grudge from my time at Lehman Brothers.

Anyway, here's what you'll get from us.  My partner and I are very conservative when we analyze and negotiate our deals.  We look for the following for starters:

At least a 10% cash on cash net ROI

At least $200 per door in net profit per month

At least a 1.5 DSR so that we can make additional payments to the principle

We take the following into consideration on every deal no matter what:

10% vacancy

10% holdback for CapEx & Maintenance

10% for property management

We are not looking for hard money.  We are experienced buy and hold investors and want a long-term, profitable relationship with a private lender that would like to invest with us on a passive level. If you would like to talk a bit more about our experience, what we're seeking to invest in and your goals, please shoot me a message and we can set up a time to chat.  Best wishes to all!