All Forum Posts by: Casey Miles

 It's in AJ. I might be interested in doing that.

Would the title company have a purchase contract? I'm going to call them tomorrow AM. Just trying to gather as much info as I can before then.

Hello Everyone,

I am in need of a residential purchase contract, preferably one for Arizona but I'm sure a general contract will work.

I'm looking at a FSBO distressed mobile home. The "value" is in the land to be honest with you. I won't be able to tell if it's worth it to repair/remodel the mobile home or replace it until I get the lot cleared off.

I'm thinking the ARV for the lot and mobile home is around $40k. The guy wants $20k, I think I might be able to get into it for $16k. I think it probably needs $10k worth of work. I'll probably keep it as a rental.

Thanks in advance,

Casey  

Welcome Andrew. I'm not sure what your current job is but if you're serious about RE I'd try to work in the industry anyway you can. It's easier when you're young to pivot and start a new career path if need be. 

I'm in Mesa. If you ever need help with anything don't hesitate to ask.

Casey

Hi Anita. In a perfectly executed wholesale deal you, as the wholesaler, wouldn't need any $. Sometimes the seller may want an ernest deposit. In that case you'll probably spend $500 which you'll get back when you close. Financing of any kind is typically an exit strategy, not an actual wholesale technique. If the deal is good HM lenders will typically lend 75% of ARV.

Good luck!

Hi Jeremy and Welcome!

Lot's of good info here. I think I'd work on analyzing a deal first. You can practice doing it for free on almost any property. I like idea of buying a multifamily using the first time buyers and owner occupied loans for those just starting out. If you find a good flowing property you can use the existing leases to help your DTI making it easier to qualify.

I'm located in Mesa. Give me shout if you need anything.

Casey

I bought my last MF about 5 months ago. The MF has really dried up even since then. I've only found my properties on the MLS though, no pocket listings. I too need to start networking and do the Listsource thing. For now I'm in a capital recovery phase so I have some time.

All very good points. It would be expensive to recover my $10k. But what if I'm not recovering $10k? Lets say hypothetically he has a first position mortgage for $100k and the property in question is worth $1mm? At some point does this deal become worth the risk from an LTV stand point? Almost to where he/she doesn't perform to the original agreement?

This guy probably did make mistakes in his budget, etc. That's why he's willing to pay an effective 120% APR on the money because it is risky. My questions weren't to analyze the risk. Assuming he will default and there's a good LTV, how do I go about getting at least my initial investment back. It sounds like recording a mortgage on the house would be the best bet.

Thanks for the input Darren and Charlie. I know there would be significant expense in foreclosing and that my initial "profit" of $3k would surely be gone. That's why I would only do it if the LTV was good so If I end up with the property I'm still ok after buying it from the first lender and paying the associated fees accrued during the foreclosure process.

Ideally he has some equipment he can collateralize instead. I meet with him this afternoon, I just wanted to get some questions asked beforehand. I'll report back with the details after the meeting.

Thanks again,

So assuming the LTV is good. Could I foreclose on the property being in the second position? Obviously I know I'd have to handle the 1st lien somehow. Surely there's got to be a way to secure a loan like this assuming there is a good LTV?

I have someone that is nearly done with a remodel/flip and needs $10k to shore up loose ends, etc. They'll repay me $13k in 90 days. I don't know this person too well. I plan to have them pay for prelim title to see what is owed on the home. I know there is a primary on it. How do I secure the money I lend using the real estate in question as collateral (assuming it's a good LTV)? Put a second on it? A lien? Do I have the promissory note with a second mortgage recorded against the property?

Definitely new to this sort of thing. I'm a buy and hold type of guy but this opportunity came along so I figured I'd ask the question.

Thanks in advance,

Casey