All Forum Posts by: Account Closed

I'm familiarizing myself with the foreclosure market in Northern Virginia, specifically Fairfax County and I have a question on obtaining the cash for purchasing a foreclosure at auction.

This may not be unique to only Fairfax County, but cash is required for the purchase and conventional financing is not allowed. In Fairfax County, a bidder's deposit of 10% of sale price or 10% of original principal balance of subject deed of trust, whichever is lower, is required day of auction in the form of cash or certified funds payable to the Substitute Trustee present at sale. The bidder then has up to 15 days to close on the remaining balance in the form of cash (i.e., cash, cashier check, money order). 

I don't have hundreds of thousands of dollars in cash just sitting around that I can tap into for bidding on foreclosures. What are some means to obtaining cash when conventional financing can't be used? 

Thanks in advance!

@Jay Hinrichs, what a concept. Sounds like I'll have to consider other means. Thanks. 

@Evan Wiesner, can you expand on this? I live in Fairfax, VA and their land records division doesn't offer a list or index of all open lis pendens (notice of defaults). The Fairfax, VA system requires you conduct a land record search using 'Last Name, First Name' — meaning, you must know the owner's Last Name, First Name.

Obviously, that would require you to have the property identified beforehand.

Is it like that in your local land records department as well?

@Twana Rasoul What would you consider a decent amount of savings in a HCOL (High Cost of Living) area?

Nevermind, found the answer! I was going to delete this post but I can't since posts cannot be deleted on BP.

https://www.biggerpockets.com/forums/88/topics/332980-rental-property-calculator--total-profit-if-sold

https://www.biggerpockets.com/blog/2016-05-26-annualized-total-return

I've added a few photos to my original post above.

Hello!

I'm starting to play around with the Buy & Hold Analysis report that BP offers to Pro Members because as a free member, I have 5 calculations at no charge. If I'm going to use the report, and purchase a Pro BP membership, I want to understand the math behind the numbers.

Specifically, under the Analysis Over Time section which shows financial metrics over a certain period, there is a Total Profit if Sold line item to show your profit if sold at the end of a certain time period (i.e., 1-year, 2-years, 5-years, etc.). BP defines Total Profit as property value minus net cash expenditures and sales costs. I'm trying to understand what BP considers as net cash expenditures in a Buy & Hold scenario. Sales costs should be straight-forward (Property Value x Projected Sales Expenses (% of PV) = Sales costs).

Have any others leveraged the BP Buy & Hold Analysis and knows what I'm referring to? If you do, do you know what exactly BP considers net cash expenditures?

Is it the following formula: 

• [Property Value - (Total Project Costs + Sales Expenses)]? 

Your help would be appreciated!

Thanks @Chris Adams I'm surprised I even got one reply on this lengthy post. I appreciate it.

BP Members (specifically you veterans out there, or, real estate rookies who are finding success): I have been a BP member for a few months now. My initial intentions of being a dedicated, self-educating member failed. Wha' happened? Work. Life. You know, responsibilities. Just graduated college, and entered the work force. Determined to learn more about real estate and how I can access financial freedom through investing with business intentions (not just a few SFR units - I want an army, dang it!). I have a goal of reaching a net worth of about ~45k by the end of this year (probably will only be $35-$40k). I want to buy some property with some of that, dang it! I don't care about a new car, new clothes, etc. I want to grow as an individual (mostly financially right now). So...for all you people finding success in real estate...I have some questions if you have the time! (1). How did you find the cajones to invest in a real estate property? What made you do it? How did you come out victorious in your internal battle of debate? Did you have a business plan for yourself, defining what your goals are (one property, two properties...fifty properties, etc.)? (2). How the heck do you deal with all of the uncertainties? I.E. - Housing market declining for the area; inability to find tenants; ability to find TERRIBLE tenants; sudden requirement to move due to job relocation (wtf do I do with this rental property now?!); having to default; not being able to sell the property, etc... (3). Are there certain ratios one should use in order to measure whether or not a real estate investment is wise? Sounds obvious, right? I know. No time for not asking dumb questions though. (4). How do you go from having one or two SFR rentals to owning an army of rental properties? What makes you decide you have the ability to even do that? Are there some magic tricks I don't know about? I read some of these individuals in their mid-20s, late 20s, and young 30s, with all kinds of real estate success stories. After I finish rolling my eyes and vomiting, I find myself itching to learn more and how the heck I can do it. (5). What are all the expenses besides the mortgage payment for the month? Insurance fees; property taxes; handy-man for maintenance; legality fees for tenant contracting; credit checks; lawn maintenance; renovation requirements, etc. All of these expenses seem to be just squeezing at your margins. (6). How much money do YOU think you should have put away BEFORE investing in real estate for rental purposes? (7). Are there any benefits from creating a legal entity and investing through that entity, rather than investing as an individual? So many more questions, but I'll save them. I feel that this is a very complex, dynamic, and volatile industry. Not to mention, extremely competitive. Any feedback would be super cool! I promise to involve myself more with this community filled with badassery. P.S. - Would any real estate investors in Midland, TX be willing to meet and discuss more in depth? If so, let me know! I'll buy the coffee (or meal - expect something average though. I'm a college graduate, not an oil tycoon).