All Forum Posts by: Jimmy NA

I have been advised repeatedly, that a substantial amount of sales come through connections to lawyers. Do you think it is of value to write a letter introducing myself to local attorneys in my market? Here is some background on me: I am new to my market, though not to real estate brokerage, and am part of an established famly brokerage. Lawyers may know who "we" are but may not know who I am and my background in RE. I worked several years in a large urban market prior to returning to my home town market.

Do you think this would be a good idea? Or will a letter fall on deaf ears? Your thoughts?

do you walk away from a deal that will land you in the middle of winter after all repairs are done? i have this situation right now....

My Plan:

Purchase (2) adjacent properties, (3) family and (2) family (separate deeds.) I want my downpayments on each to be as low as possible. A loan representative told a can do 1 closing, 1 loan. Another mortgage rep. told me I need to do 2 closings and pay all the costs associated with 2 purchases. I want to put down as little as possible because I need capital to pave the driveway, side one of the buildings, etc....
The purchase prices would be 80K (3family) and 50K (2family). I would like to finance the closings costs as well. I think they will be about $4500. What is the best possible way to structure this?

Dear friends, dear comrades, I am well covered by several contingencies. I went into the property today. Not as bad as I thought.
Here is what is needed: kitchen (cabinents, flooring, appliances), full bath needs remodeling; half bath is ok (just beautifying), roof will need to be done b/c water has come through in one corner on the 2nd, windows are ok with newer storms, lots (& lots ) of trash removal. carpet covers beautiful wood floors on 1st & 2nd floors. Exterior and interior paint.

I have started calling various contractors. As Minna recommends, I will be watching how they behave. The biggest problem is getting people to show. I have made several calls to contractors: few call back. One did not even bother to show for an app. today. So I am making the calls and getting on top of things.

Ok, here is my situation:

I have single family under contract at $60,000. I have checked my comps. well and the ARV is approximately $130,000.

I have not gotten inside due to a complicated situation. I know the neighborhood and I know my comparables.

I have done my rough numbers on repairs. The house needs a roof, a kitchen and one bath. Also, exterior and interior painting. The house is small, approx. 1500 sq. ft. I think I can keep it under $35K for repairs.

My next step is to get quotes. Should I get 2 or more quotes on each of these needed reapirs? Is it overkill (and a waste of valuable time) to get more than 2 quotes?

Any advice on where to go from here?

I need some help analysing this potential deal. I can buy direct from the owner; two adjacent properties. Do I buy and flip, or rent and hold?

3 family (brick) 5-5-3, 2bds, 2bds, 1bd--Gross $1650
2 family (wood frame) 5-5, 2 bds each, Gross $1150

The 3 family needs roof repairs, facia, soffit.
The 2 family needs siding, or scrapping and painting, and 20 windows. The rear of these adjacent properies should also be paved. Parking for 15 cars. Fairly small area. Lets assume there is less than 3k interior work in each building. I know all 5 unit have newer hotwater tanks and boilers, all were replaced in the past 5 years. Also, electrical sevice to both props. was just updated 5 months ago. So, I plan on putting little work into the interiors

So, should I buy fix, and turn over. Or repair and rent?

What is an attractive purchase price for either strategy?

Individully, the ARV for the 3 family would be $130-135K, and the 2 family $105-115K.

148K?

no condo market here.......Boston, NYC it might work, but not in Little Town, USA.

The numbers don;t work, but I plan to put my office in the building so there is a reason outside "the numbers" to purchase this. It would work perfectly as an office...plenty parking, busy location, etc.

There are (5) units. There is room to increase rents. Of course, the units have to be cleaned up.

ARV= $225,000
Repairs: $20,000 (high estimation)

Using the 75% "Rule", smart purchase price is closer to $149,000.

Maybe I should pass?