All Forum Posts by: Shane Bryan

In some states the seller can give the Agent the right to turn down offers if they do not meet a certain criteria. It's rare and I believe it requires a Limited Power of Attorney. So this might be the case, with the seller having health issues.

If Remax does not work, submit the offer to the Listing Agents Managing Broker and include an email or letter from the Listing Agent saying s/he refuses to submit the offer.

I would think the lenders are going to enforce their due on sale option even more now. Even with the current rates on loans, banks are able to easily borrow money from the Discount Window to meet their capital requirements. Why hold onto a note with a small profit spread when you can have a piece of the current 4 to 5 % spread. Their greed will catch up to them again when they realize even with the increased spread they’ll lose out should their more dependable borrowers start to default.

I could be wrong I’ve only just started to research the lending world

I haven’t looked at the photos but if you have talked with the new landlord about the mold and utilities and their refusing to address them, I would get a hold of your states Division of Real Estate. Most states have laws in place to protect tenants from harmful conditions.

Just an idea I thought I’d throw out. Would it be possible to find another investor who could buyout the current partner who is wishing to leave?

Do a Google search for "Broker Dealer". Their registered to broker funds for small to mid-cap companies. They usually have a large client base of accredited investors along with Investment Banks. Since small banks tend to invest in the mid cap companies these brokers should have a great relationship with local banks.

You can also do a search for “OTC Bulletin Board Market Makerâ€, they help fund mid-cap companies and are registered Brokers. Both these searches will help you find brokers who specialize in helping companies with small Private/Public offerings and they should have a relationship with your smaller local banks.

@Jon I have been in a couple of the houses on the East side of the lake. Both where around 6,000 SqFt. The Comps from the east side would support a price of 1,100,000. The east side of the lake has a variety of houses from 1,500 Sqft to 7,000 Sqft. The Property I'm looking at has 5338 Sqft.

With the estimate on finishing cost, I would need to get a solid estimate before I made an offer.

You and @Matt brought up some good points about the rental rate. If the house was on the market for two years even if the house was only rented half the time it would at least cover holding costs (without any Debt Services). If it was rented 180 days out of the year thats 54,000. Which would cover 4500 in monthly hold costs.

@Jon you asked why jump into such a large project, what can I say I love a challenge! Yes there will be more involved and problems will arise but as long as its expected it can be address up front. You had also said that why would I risk having a failure on my record, Everyones going to fail you can not succeed without failing. So why avoid a project because it might fail. Things go wrong, the successful people find a way to turn it around.

It would not be possible to make 500 to 600k out of this deal. At the most 200k, so it would not be a great deal. Just a good one :)

Thats only if the property and shell could be purchased at or below 500K

@Jon The price range is very dependent on the side of the lake the property is located. Properties on the west side of the lake do not have a view of the mountains. They range in the lower numbers. The properties on the east side have a mountain view and range on the higher side.

3 Properties have recently sold around the Million dollar mark.

The property is located close to Este Park and would have year round tourist activity. I need to do some more research on the Vacancy rate and the local Day Rate Rentals.

With the advice from you and Brian I believe this deal would not work with Hard Money. I would need a cash partner to make it a profitable deal.

@Brian I agree that I would need to purchase the property at a large discount to make the deal work. Closing cost I would cover out of my Commission (I'm a Licensed Broker) but it still takes away from the Net Profit.

The Day Rate rental properties in the area tend to be rented 70% of the time. I also plan to charge a Housekeeping fee to help cover the added maintenance expenses.

Renting the property would cover expenses with some income. The money would be made on sale. I expect to hold the property for two years with the income letting us hold out for a sale. If I could not get a far discount to make it worth while I would pass.My thinking is that it would be possible to get a large discount with fast close and cash. The owner does not have anything close to the price invested(Tax Deed).

:) looking forward to more advice

Hi Kendra,

First thing that makes me wonder is why the current owner wants to get rid of the property. If it was a personal cash issue he would not be willing to do a lease option. I would find out the reason for a quick sell.

A lease option is a great way to create equity or money to be placed toward the purchase at the end of the lease. If the current owner was to take a lease option he would most likely make less monthly income from the deal and suggest the property might be distressed.

There is the possibility he's looking to trade up (1031 Exchange) which would be a good thing but DO your research on this property.