All Forum Posts by: Champak Shah

You need to identify Building Code violations and find a rehabber who can give estimate on his statinary and also need end buyer --Invetsor with own money --POF --to get your POF -- Its A to B and B to C -- back to back closing --

I believe " Assignmenet of Contract " is fine as long as all parties involved are informed.
I disagree with Johnny's comment --yes people do make and can make over $400,000 in one year -actually in three months --as a wholesaler --if you have cash and concentrate on upscale homes --over $500,000 ---your spread - fee is much higher--

I am planning to get into whoelsalling this--if any one intereste d- just saw a house -previously valued at $330,000 --is now on auction with minimum bid of $70,000 ---nice to have at $100,000 and Resell for $150,000.

And about --Option Contract " -- yes that can also be assigned for a reasonable fee --such as $3000 or $5000 to other Invetsor-- at the
same price we offered to buy --

Always check with local realtor, RE Attorney and Specifically Hard Money Lender about Assignment VS Double Closing --now some people use the term - Back to Back closing --

Yes- This is a very good site for Atlanta Investors--I have seen many good deals--some homes are not in areas I like --however,
if you have patient and do some reserach ==specailly homes not sold for 30 to 60 days --and follow up-do some good comps and then make appointment to see the house and explain seller --nicely --be comfortable and
help ful -then may get good deal. Some homes -- good properties --and good deals -
are away from main city --so most investors do not pay attention --but if you can check out -- may get good deals.
Good Job Doug--I am impressed --Only 30 years young !!

Yes-the mortgage is usally calleld a " Security deed" and it should have been referenced with book number and page number --on Warranty Deed. --So you know if there is a
mortgage --if you need to know how much is the loan amount then go to security deed and find all details --
You may be wasting time--most of the homes sold will have a mortgage -- even if invetsor paid cash -he would have sold to some one else in short time or refinanced ---

USE this info for comps and enighborhood analysis-- only --

If you want to find --if the buyer is an Investor and not Owner Occupied--then check each property with tax department to see where they send the tax bill --if it is differnt then the property address --then you know that owner is an Investor and now you have his ( her ) mailing address to contact.

There are many ways to Build Buyer's list --read other articles here in BP --

Good Luck

If possible --break it down to three separate transactons --a) SFR --free and clear --let owner do 100% financing or master lease for three years -- what is purchase price and ARV ? how many homes ? b) 6 unit apartments --if there is enough income and all untis rented --may get short term loan -say 70% LTv first and let owner take second --may be private bridge loan or hard money -
c) mobile home park--this may be tough --but get 50% first and let owner carry second for five years --then refinance later -- must have good cash flow -- to carry thorugh -
and yes-- Equity Lenders --private lenders do deals --howeevr this may be too small for them --Best is syndication or " Private Placement Offerings" -- which requires an LLC and approx $15,000 for attorney fees . Then raise funds -- need a business plan.

Thanks Jon- I had just joined few days ago --I noticed this discussion --Not sure - But when I
satrted in 1981 --I was and still am conseravtive --and In Atlanta many investors still use 1 % rule. We get appreciatiaon and equity build up- Also I said 1% of ARV --not purchase price -- Most Investors --will pay only 70% to 80 % of ARV in todays market and have 20% down or nhave swet equity for rehab so mortgage may be only 60% to 70% of ARV -- I agree some times may not have positive cash flow --but long term rent and hold --should have good return in Five years --When I started I also had a full time job- and had special accelerated depreciation ( 15 years ) available --which was good offset on my ( and my wife's ) income --on Income Tax.

Also --if investor buys from FSBO -- can have leverage with less down and second mortagge by Seller -- I had never put in more than 10% down and never had PMI --always had second mortgage by seller.
As far as neighborhood- also I have diffenrent philosophy--specially in Atlanta market -- no offense- but I stay away from low income --black neighborhood--- also opposed to Section 8 tenants - I prefer to buy in good neighbor hood--with only few rentals in a subdivision --that way --my tenant maintians
proeprty well as per neighborhood- and appreciation is much higher-- and they treat house like they own or would like to own.

I never had problem in 18 years--
Sorry to disagree --but yeah todays market may be different --I am not buying any rentals anymore.

Dont know about Morrocco-- In USA --Atlanta or any other cities- I recommend area near --Hospital, College Campus, Large Industrial Complex as well as near public transportation --many young families and single moms like to rent house - not fancy or upscale - just basic - low maintenance - -- Also first check nearby apartment complexes --find out what they charge for rent - 2 br / 2 bath and offer hosue 3br/ 2 bath for same price or $50 more --eventually they will buy --as Lease Option --also young parents with young children like the house for play area etc --
In Atlanta rule of thumb is rent should be atleast 1 % of house ARV -- meaning $1000
rent for $100,000 house- -

Hello --Determined --smart investor
You stole most of my words--
any way few more here --

Vacant
No Equity
Short Sale
Investors Welcome

And yes- you can get expired listings --
Best is to make agent a friend --make sure
to impress --convince that you are a serious Investor / Buyer and not wasting time --have
professional Business Cards and proof of funds if possible --

As far as Commission Guranteed -- you tell
agent and expalin your business goals and that
you will use her ( him ) as Buyer's Agent and
make offers through him ( her ) -- and even offer
extra 1% commission on first three deals --

At the same time --interview three or five agents who has experience --in REO, Short Sale etc and have closed 10 or more deals in last six months ---

Also Chris - is right --you need to define your
area --farming and then also niche --either Short Sale, REO, Rehabber , buy and hold, wholesaler , lease option etc --
Work Smart not Hard --

Hello Anthony-- First thanks for your service.
I strongly suggest --Assignments and Flipping or Birddogging for short term -cash flow.
Spend few days or weeks --go thorugh all the Articles in BP- about Wholesaling, List Building, and Finding Motivated Sellers -
Yes - Lease Option or Rent To Own --is viable altrenative with FSBOs. --but just Assign your Option Contarct to some one else and make $3000 fee -- many peopel do it full time
and make $5000 to $10,000 per month --
Depends what city are you in ? total population --- average home prices -- blue collar workers -- etc
Do not be afraid of paper work--once you do one or two --then it is all repeatation --
Also many old folks --have --Free and Clear homes -- if you can negotiate selling with owner financed --low enough to Flip to other end buyer --make $5000 --

Do not get hang up on buying and renting --
even $200 or $300 month positive cash flow possible on REO -or Fixer upper --but never know --unexpected major expense --

Since you are handy man --you can find Investor to do JV with --you can finn the deal and offer to do repairs ( swet equity) for profit sharing and Investor put up cash or his credit and get hard money --
Make sure to haev an attorney and good agreements with anything you do.
By the way -Commercial Foreclosures coming
soon --becoming an agent is easy --but getting listing and undrstanding numbers --evaluating NOI and cap rate etc may be tuff --unless you have some friends ( from high school or college ) willing to take you on board and train -

Also suggets taking on some courses --may cost $3000 to $6000 one time --but worth it for
fast track --cash flow

Good Luck --let us know how you make progress in 90 days -- stick to goals and work hard --

Hey MB --What is MF and Apartments ?
Upto 4 units is residential --lending
then Small apartments --may be upto
20 or 40 units --or loans under $1.5 million
There are many other expenses --to be paid upfront --such as Appraisal and Inspection, Environmental Report and Engineeing Report if older property-- There is Bridge Loan and Permanent loan -- Are you buying to hold ?