All Forum Posts by: Shawn Holsapple

All great advice!

I'd like to ad one more nugget. As with all offers, if it doesn't embarrass you a little bit then it's too high!

Don't be afraid to "low-ball" your first offer. You never know how motivated the seller is. I buy REO homes regularly at 20%-40% of the already low list price just because I was either the only bidder or I just happened to submit my bid on the day the seller was more motivated than most.

If the ARV is $1M and you want to be at 65% of that after rehab...that only leaves you an offer of $150k if it truly needs $500k in rehab. Me personally, I'd offer $219,815. [This odd number makes it sound like you have used some magic formula and that you've spend some time coming up with the number].

Of course I buy Condo's in cornfields and not mutli-million dollar homes in OC, I hope some of this helps.

I assume you don't have a provision in your contract that states you may bring "partners" or contractors through the home on occasion?

I understand the sellers concern. I don't see a problem as long as you instruct the buyer not to ask the seller any direct questions about price and to keep the conversation to a minimum.

You could also request that the buyer submit the signed contract and earnest money with a contingency for final inpsection before the earnest money becomes non refundable. This way the deal is nearly complete and the buyer is saying he will take it as long as the walk through is satisfactory.

Good luck!

Don't forget the "Deal of the Year" comes around every week!

At least it's been a "good" learning experience. I like to call these "business vegetables". We hate them, but everyone has to eat them!

At this point, I'd have a discussion with a local conventional lenders to see what they use to determine value on a non owner occupied home. Some simply use a gross rent multiplier, which would have nothing to do with comps. Others may do an appraisal. It sounds like the sold comps on your block were REO or in as-is condition for those prices? If so, rent ready condition will be worth much more and would still be able to finance.

I've had success with local small State/Regional banks and local Credit Unions on getting lending. You may want to start there.

Over all, the numbers look good on paper [without know the taxes and other expenses]. I assume this is a early 1900's built home? If so, they can be money pits, even after full rehab [I've ate several of these "vegetables"].

Hang in there!

Ronnie,

I just use power point to make a nice 5-7 page flyer with all the needed information to make a sound purchasing decision. Once complete, I "save as" a PDF and then attach that to my email blast. I've had great response from my buyers. Here's a link to an example. Feel free to use it, if it works for you.

Christina,

So, you are using a HML for a buy/hold? Was you planning on refinancing at some point soon? I know most HML charge a higher APR and usually that kills the cash flow numbers.

Either way, hang in there! Just go out and make 10 offers today to get your mind off of it...

Greg, I'm glad you took my advice & joined BP!

Welcome aboard.

I've been using Larry Anderson with Real Property Management Indy Metro for about 3 years now. Great service and great reports/statements and reasonable maintenance prices.

He will only do properties with rents of $750 plus. I assume since your asset is in Greenwood, that shouldn't be a problem?

His email is [email protected]

Another good PM that's I've know for awhile and just started using is Joshua Bangert with Hidalgo Group. [email protected]

As with any referral, I recommend you interview them both and see who is a fit.

I hope that helps. Also, let me know when you are ready to sell you rental!

Well said Darrell

Looks good.