All Forum Posts by: Josh C.

S the math on return equity. Apartment buildings sell at around 5-9 cap depending on different factors. So if you are only making 36k a year on a million on equity that’s a 3.6 return on equity. Not great. If in 360k of equity that’s a 10% return. Better. But return on equity is different than cap rate. Do the math and make some moves if needed. Good luck.

Why do you think all this is necessary?

200k of equity on 300k of assets or 200k on a million? It makes a difference. Most lenders don’t like more than 70-80% loan to value. So if that’s where you already are you probably won’t have any luck. If you are way below you can probably find some who does second mortgages. Start with the bank that has your first mortgage Good luck.

Please send contact info. Josh at cityplaceindy dot com. Thanks!

The seller will get anything above the judgement and fees typically so they don’t lose all their equity. Some people are different or can’t handle real life problems well. Lots of people make poor financial decisions everyday.

Susanne McCallack I think your facts are off. At least in my state. First, what listings are you looking at where you don’t know the address of the property? Also, it’s incredible easy to find out the owners contact info. Go to your county’s website or in some old school places you may have to physically go there, but still very easy. As mentioned above contracts don’t allow the seller to sell on their own regardless if the mail man walked up to the seller the day the contract was signed even prior to listing it in the MLS and brought sacks of money. Agent is still entitled. It’s a contract. You asked for the benefits. Answer is zero on a listed house. Actually, negative benefits as you won’t make any money and have an attorney bill at the end. I assume you’ll disagree, so quit asking a public forum and talk to attorney.

Some deals sometimes. Lots of out of state guys that bid up pricing. You have to have cash. There won’t be any “obvious” good deals. Have to hunt or take a bit of a gamble.

Unless you are in a tight spot you’ll get “market value” when you have the largest market bidding on it. So listed with a realtor on the MLS is your best option 9 times out of 10. Some trashed out place still will bring top dollar in the open market. We buy stuff for cash close in a week off the MLS all the time. If you don’t want to pay a realtor get your pro account and list it here on BP. Someone will buy it. If you call parrot or another company you get a market of one. Which is ok and probably easiest for you, but not how you get top dollar. Just understand that companies that send you marketing for anything don’t do it to help you out, they do it to make money. These guys do that with the equity in your home and taking some it. Unless you have to sell today or hate money in which case PM me or the other guys already chomping at the bit and we’ll offer cash on it and close this Friday.

A rent ready house for 50 was fine a few years ago. Now it will be in a rough area. Go for the 80k house if you can swing it. 3/1 is a fine rental. The second bath is nice, but on the lower end not common and not needed. Focus on making the unit bullet proof.

Vicente Mendez unfortunately it’s a familiar story. As others have said the house is probably worth much less than you are into for. We have taken over dozens of these in the past few months and found just the worst situations we’ve seen. Homes where people have paid thousands in rehab where nothing was done. Situations where the owners have been receiving $700 in rent each month, but the lease with the actual tenant is much less. $450 in one case. They do this I assume by keeping all the rehab money up front and “losing” a couple hundred a month. Saying a home is totally rent ready and when we inspect it we find it has no windows and all the electric is missing. Plus mold. Every surface and everywhere. The house will probably be demoed. Some houses are ok and able to right the ship so you may be one of the lucky ones. I suggest you get everything you can in writing and hire a new company ASAP and ask for a property report with tons of pictures. Good luck.