All Forum Posts by: Champak Shah

One suggetsion about getting motivated sellers -- go to Craigs list or FSBO websites and check homes --in your farming area
--no more than two or three zipcodes--
pick hosues -- A) Listed for more than 90 days -- I have seen some are listed for 176 and 277 days -- B ) Out of State phone numbers-- Seller may haev moved already
and hosue is vacant --

Seems like you have pretty much decided what to do and here you have some good comments --there are other artciles --forums about Wholesaling --here in BP.
Yes- some one here may have negative comments about me-not having experience --I am just getting back and decided to do Whoelsaling ---finding properties is easy then selling --flipping. So first priority is to Build Buyer's List ..

I spend more than 8 hours -- on laptop --
I am retired and will like to be atcive --working on two other businesses same time --
Just from Free Webinars and this and other Group Forums --I have made notes and printed over 300 pages--

Now here is my step by step -- Plan ( I may write an eBook some day --not sure )

1. First Form an LLC ---
2. Prepare and understand --Contracts-
Purcahse, shor slae, Notice of Option etc -
3. Finanicng --Line up Transactional and
Hard Money - understand terms and
costs --
4. Buyer's List --Find Investors / Rehabbers
interested in my area --understand their
requirements and expected profit and
price range
5 Find --at least Three RE attorneys --for
closing --who understands Investors ,
double closing etc
6 Find and interview at least Three or Four
REO listing agents --who may be willing to
work with me--use them as my buyer's
agent --offer them full commission -
7 Determine Farming Area -- check out for
sale and for rent -- evelauate comps and
actual sold -in that area -
8 Understand rental demand and rental
rates in area --find several rental
maangement companies-
9 Detremine Profit Formula --
check Justin's Blog about Wholesaling
and my comments --Jason also has some
good comments -- Determine your niche
price range and minimum profit required.
10.Start checking houses --REOs, FSBOs,
MLS etc -- OR you can sign up for $20
to $50 per month --to buy Motivated
Seller's Leads--
11 Evaluate and Start making offers -- 10
per week --

$2000 may not enough --may need to
spend $5000 to $10,000 to get lot of leads
flowing and get going -- get website , flyers,
direct mail postcards , etc --

One other comment-even though -father is a contractor- need to get at least two other contractors for estimate --as matter of second opinion --for at least first two or three properties--

May want to consider renting and holding few homes --since your father is contractor--may save lot on repairs --and pay only for materials --offer equity or partnership for his labor cost --
once fixed up and rented out --refinance and get cash out --

Check other topic we had few days ago --about the Key Words-to find Motivated Sellers or good deals --in MLS

Good Luck --keep us posted .

P. S. --Just noticed --Edward has some good comments - he posted while I was typing mine. He is close to you and you can network with him.

Joe--65% -85% on REO is TOO High --should be Wholeslae price after Rehab --REO should eb under 50% --ARV.

Oops --this is 2 years old ?? what happened ?

If its an REO--are you getting at 50% or below ARV ? do you have buyer lined up to Flip ? What is exit strategy --Flip to other Investor
without doing repairs OR do the repairs and sell to owner occupied ( end buyer) ?

Hard money is best -- need to have 600+ cerdit score and other job ( income)--since this is yoru first investment house-

For Apartments --depending on type of rehab-
you always buy at lower price --however--if you plan to get financing --you do projections and add cost -- to purchase price --lender can include the rehab costs --
However, renovations to building or structral repairs --called Improvements --such that it will increas value of property and of course higher rent -- than it is different --it is deffered maintenance - and have to consider based on components -- you also need to talk to an accountnt --for depreciation consideration --you need to buy a soft ware to anlayze -- using what if senerios -- for different assumptions -- IRR is the best -- always leverage and refinance to maximum available at the time --after rehab or major renovations are done and rent increases or cash flow increases --

I have done this for several Hotel loans ---similar principal apply --I use simple spread sheet to do five year proforma projections and improvements are added to loan --Lender keep money in escrow- called reserve for improvemnets -- fixed amount based on Recommendation in an Engineering Report. The engineering report identifies major components and remainig life- then estimated cost to replace in year one, two, three--like that -- you have to plan for that and set aside some money every year --for future repairs.

Hope this will help you --

What size apartment complex is it ??

Also --if it is too old --may have Asbestose and Lead Based Paint issues --- very expensive ---

At first I oppose Condo-- however --based on info - location and demand --it may not be bad-

In today's market --most palces condos are very cheap -- 30 % t0 40% value -

As far as financing --if REO -- offer reasonable price and show Job Letter --
with $20% down --Lender may do financing-

Other option --if available by Owner at same discounted price --from a desparate seller --
then you can do subject to or Lease Option --

Depends on what city - state are you in --
SFR may be still better -- price will come back
up on SFR first --upon recovery --

Just wonder -- what city and what field --only
$50K with master's --is it that bad out there ?

Better option --same area --near university --if you find a 4 br house - then have one or two single students as roomate -- they share common kitchen and living room or den --
basement will be nice -- get over half mortgage paid by them -- later if get married and buy other house --still keep as rental - rooming house and have three or four students as tenants -- -

Many good properties in Atlanta area -- specially some one wants to buy and hold --
Money is available -- thats why I decided to get back as wholesaler--

Surprised --want to make lot of offers --but does not want to spend $200 for annual membership -- not bad price --even if you make 10 offers in one year --it is worth it

For me --Like microsoft word--have typed in manually --several contracts and amendements --and I can modify for each offer-- and send via email --except signature --

yes - there are some programs available with purchase of membership --cost $2500 -- to make multiple offers and anlysis of property

If decide to get into this as business --need to have some budget and spend some money

Hello
No it is not a good deal -- take off 30% from 2004 price --that is current value --so current value may be $400K -
Have you checked court records and calcualted the mortgage balance ?
If rent is $2800 ---you should not pay more than $280K --some members here will even go lower.-- Not a good deal for you --glad that
they did not accept--wait --let it go to foreclosure--let it sit for three or six months --then offer $250K --- Good Luck

Yes-if you are paying cash for the first lien
( mortgage ) --you can talk to and negotiate
with other lien holders and keep as first position or second lien -as long as there is enough equity -they will agree--also some time s--you can negotiate and pay cash --discount the mechanic's lien or transfer to other property if you own with equity--this is if you are flipping the one you are paying cash for -- hope makes sense--