All Forum Posts by: Douglas Christian

Take your time and learn as much as you can about the business that you are entering into. Set your goals and objectives and then pursue them.

Welcom and good reading.

Hello Chris

I am in the Charlotte area. I invest in several different counties.

Rowan, Cabarrus, Iredell, Union, and Mecklenburg.

All of these counties are within 1hr of charlotte. Most of them are 15-30 mins. I have been investing for over 7yrs and I know the area well. Let me know when you will be in the area.

PM me and we will talk.

Douglas

John I am a very active BUYER and all I am doing is taking some of the money now, not all. That is what caused the market to be the way it is now.

If I own 10 out right free and clear and they appraised for 75k each. Well that is $750,000 now what I would do is take only 5 at $375,000 and ask for 40% loan to value.

This does two things.

They understand that I am not trying to overleverage the properties.

Two that gives me $150k in operating expense and I still can make payments with current tenants in place and still have a GREAT CASH FLOW. See it is the simple things.

I am generating my own cash to continue to repeat this process.

Thanks for inquiring about the %. Greed leads to PROBLEMS.

SUCCESS BREEDS SUCCESS

What I do not understand is that you have 4 others that would not sell for $379k and walk away.

What were they thinking? See this is the typical it is near the water so it should be worth more than what is owed. Much of that stuff in Phoenix, Cali, Vegas and Florida is still going to see MAJOR drops this yr.

Why not find the developer who offered you the deal in the first place and negotiate with him.

You can start a short sell, but now that the property has been repaired will be really tough.

Can you do an LEASE OPTION on the property? This sounds like a NOW solution to me.

Let us know how it works out. Come into my world and the Universe will open up for you.

SUCCESS BREEDS SUCCESS

Hello Thomas

Welcome to the site. You and Jason should love all the threads and different topics here. By the way I am in Charlotte and I have a property in Syracuse. Send me your email or pm me and I will send all of you the info. Very good price and it is a wholesale deal.

SUCCESS BREEDS SUCCESS

Sounds interesting, but I would not give any money up front. I would have all money put in an escrow account with my attorney, not theirs. I would have him look over this deed of trust and promissary note. They had deals like this in Downtown Charlotte, that the developer PROMISED condos and you had to put down $50k. But, the developer got over 100 people to do this and went belly up. Now the building was foreclosed on by the bank that loaned the developer money and now he is gone and can not be found.

What they do is use your money to either start the project or SCAM you by coming up with all sorts of stories that why the project is not complete. If I can not have my own deed I do not deal in deals like this.

If you feel comfortable with it. Go for it and I wish you the best.

LET THE BUYER BEWARE!!!!

SUCCESS BREEDS SUCCESS

Hey Marc

Welcome and good buying in the land down under.

What is the time difference there? 16 hrs or less.

Do you plan on investing in the states? If so where have you been researching that are good spots that you feel.

Look forward to seeing you around BP.

Chance1

Hope this will help you. Are you interested in CASH FLOW or the area where it looks pretty and is a nice area.

In my humble opinion this is not a deal and let me explain why. Lets say that the property in todays market is worth 90k and you say it does not need in work, I would somewhat disagree. If it has a tenant it will need something after they move or while they are there. So factor in 10% maintenace.

Purchase price 73k
ARV: 90k
insurance about $190 mth

65k over 30yrs @ 3.99 = 309.95
insurance $185.92 = $495.87
Maintenace fee:
Vacancy rate which would be 100% if it goes vacant.

Realtors are always going to tell you that it is a good deal. Do either of them own anything in this area? If not why? They said it was a good deal so why are they not buying over here.

It is your money and at the end of the day you will get stuck with the loan. I would offer less and if it does not get accepted then I will wait for the next deal to come my way.

Also, are there any HOA dues?

I would not offer over $55k. Now the realtor is going to tell you that the area is hot and maybe it is, but the real estate market is prime for the taking if you know what you are doing.

See you are getting played with emotion and it is in a nice area and in GOOD SHAPE. Can you cash flow with this property? Show me the numbers.

Well I did the numbers and if it is what you are saying, sounds like a decent deal, but I think it still could be better. I would let it sit and see them back after 30-45 days. If that one gets by you there are others that are going to be available.

Douglas

SUCCESS BREEDS SUCCESS

I will offer several ways to purchase properties. Some you know some you have heard of and which one have you tried to use?

1. Find properties that are owned out right free and clear. Get the owner to owner finance the deal for you.

2. Pay cash for a small fixer that does not need much work. Get a Lease option tenant and then after that sell the paper. (CREDIT TO MARK FOR THIS ONE)

3. Find 5 people in your circle and borrow the 5k-10k from them, if they can not offer you that then you need to find some new people who can help you to put in your circle.

4. Pay cash for properties such as the little 5k-10k properties. Get them appraised and then owner finance the Leasee and then look to CASH OUT quickly.

5. This is one of my FAVORITES. Wholesale 5 and take the cash from there and pay cash for yours. After you own 5-10 free and clear now you can go to a commercial lender and get a 30-40% loan to value on 5 of them with tenants in them you are still cash flowing, picked up some cash to move forward and you still maintain the properties with low loan to values. This is the way that I find most profitable and more feasible.

But, what I see in todays markets is that those homes in Ohio, Detroit, Indiana, Wisconsin and the mid west everyone is shying away from them because the MEDIA tells them that know one is living there or the market is no good. Well for all of you reading this. For me pls KEEP THAT MENTALITY. I will buy what you are not willing to and then I can come and put my .1 cent in on the how to help you find money to get into the game.

Also, I forgot this one. I am not an advocate of it, but it makes sense. If you have a credit card. This is the time I would use it to purchase a cheap fixer upper and then refi the home and pay off the credit card. Now I am a advocate of buying cheap homes.

Remember this CHEAP does not mean WAR ZONE or DANGEROUS. It just means you were SAVVY enought to recogonize a GOOD deal and pick it up and add it to your portfolio.

SUCCESS BREEDS SUCCESS

The Way Heather is looking at this is if you are trying to SCORE with a bank giving you a good deal, then you need to catch the home in Pre-Foreclosure and do a short sale on it. You must know what you are doing and have everything lined up.

Or if it is a good deal and you can catch up the payments of the homeowner and take the property over SUBJECT TO the existing mortgage. Leaving the existing financing in place.

Many ways to skin a cat, but most of the times your GOOD or GREAT deals come after the property has been listed for a while.

Continue to move forward and eventually you will arrive at your destination.

SUCCESS BREEDS SUCCESS