All Forum Posts by: David M.

Did you ever invest with them? How did it go?

This is a great conversation. I am also interested in wholesaling some multifamily properties. I am very curious to understand how to handle the earnest money. In my area, sellers typically expect a significant (>$10,000) EMD once the purchase and sale agreement is signed. How does the wholesaler protect this? Do you normally collect a deposit from the buyer that is greater than the earnest money deposit? Also, people seem to rarely buy multifamily in cash around here. Financing takes time so deals usually take at least 60 days to close. Does anyone have experience with wholesaling in these conditions? Does that complicate the wholesaling process? Thanks!

Hi @Maurice George. That's right. I won the auction but since I was the only bidder, I won it at the starting price. Then the bank (who owned the house), rejected the offer. Bottom line was they had a price in mind that they would not go below. Finally in a later auction I believe the bank bidded against me until their price was reached. It was a very awkward and difficulty process. However, I ultimately got the house for $175K and it needed almost no repairs. It's now worth $280K and is rented for $1800 per month. So it was a good deal in my opinion. I recommend this route but be patient and keep working it. And always use your own trusted title and escrow company!

Hi. I know this is an old post, but I am looking for referrals for some of the same professionals in the Seattle-Tacoma area. Any leads are appreciated.

@Jay Hinrichs @Tom S. @Mike Burkett @Chris C. Hi, I should have read the post more carefully. I am actually talking about Elite Funding Group LLC. The website is: https://www.elitefundinggroupllc.com

@Mike Burkett I’m looking for multifamily.

@Chris C. I have the same question. I spoke with a representative from Elite and everything sounds good. I have also spoken to a commercial lender and Elite sounds a lot better. Elite’s rates are a little higher but they sound MUCH more flexible. I’m curious to hear from anyone who has worked with them. Thanks.

Hi. He has not sold the land. But we spoke to a Commercial appraiser who gave us a few little tips to tune up the valuation. Overall, he concurred with the methodology but he thought of a few more development costs. It was very difficult to find comparable sales so we were not able to value it that way with confidence.

Thanks, @James C. I think we figured it out. We estimated it by determining highest and best use of the land (1-3 bedroom apartments) and estimating the income that would generate. From that we used the cap rate to estimate the value of the hypothetical apartment building. We then estimated construction costs and subtracted them (along with developer profit) to estimate the value of the land. I think we got pretty close and a local commercial appraiser has concurred with the estimate. Still negotiating with potential sellers. 

Hi, Does anyone have a good rule of thumb or methodology to value commercial land? I have a friend who has received an offer for a lot he owns in downtown Tacoma, WA. I am trying to help him determine the market value. Thanks.