All Forum Posts by: Steve L.

Is it a small local bank or a big bank?

If it's a smaller bank you can call them directly or go visit.

A big bank, wait for the RE agent to come around.

This does not happen very often, but the most common way for this to happen is to buy a REALLY good deal and a hard money lender will finance it 100%.  Not very many hard money lenders will give you a second for all your cost, but if they are really safe they will give you a first.  After a 6-12 months of seasoning you can get a conventional lender to refinance the hard money loan.

Another option is Seller financing.  Or a Seller financed second.  

Good luck.

Yes, you need the Seller to co-operate and the eviction attorney will name both the Seller and Buyer.

Yes.  Very easily.  Banks love MF projects right now.  

Need good occupancy and a bit of experience.  

Maybe you could pitch the guy who is providing the money... if he was offered the cash for keys maybe he is more pragmatic about it?  

Maybe you could alert the condo association about a criminal past or behavior that violates the rules or something that would disqualify her.  Typically the lease would mention she must follow the association rules.  

Lastly, maybe she would "switch" units with your son and you could subsidize the difference for the remaining 10 months?  There is obviously some risk with that, but she is in your unit already.  

It sucks when people do not co-operate with our goals.  

I don't think there is a set answer to this question.  

When I am buying a re-position, 500k purchase, 200k rehab with 50k NOI and 2k in closing costs, you guys are saying we would calculate it at a 10 cap rate. I think that is wrong, it should 50k/700k. That 200k is not factored into the cash on cash or IRR.

The closing costs would typically not be included (unless they are unusual).  When you are going to sell it, you would price it based on cap rates in the area... closing costs depend on the Buyer and are non existent with a cash closing.   

Have you asked for his taxes?  Maybe his accountant does the work for him?

I would just run my numbers at 50% expense ratio and evaluate it on that basis.  

His expenses are probably not that relevant as I assume you will run things different (aka: not doing rehab yourself).

Bad tenant season seems to run year round for me. :)

February to April seem better some of delinquents catch up with their tax refund.  

The homeowner, bank and buyer all have to agree to proceed with a short-sale.  Typically a real estate agent will do the negotiation (not an attorney).  The bank probably wants to see it listed but the existing Seller needs to accept the offer.

You said, "I asked my attorney to draw up a release."

You didn't say, "I spoke with my attorney and we discussed the Seller goals and how to protect me as a Buyer moving forward."

To me it seems like the attorney did what you asked and you owe him the money.