All Forum Posts by: John Evan Miller

Wow, sounds like the lenders in your area just have no clue! I wonder if presenting lender #2 with proof of rehab costs would have made any difference. Probably not. Once underwriting says no it is like trying to recast cement.

I like Ann Contorno suggestion about promoting a preferred lender. This sounds like a win win situation.

Any empire needs cash. If you are looking to invest, find out how much you can spend. Put up every little red cent in savings so you have some equity. When you think you are ready, then head to the bank to get pre-approved for a loan and then start shopping. Good luck, and welcome to BP.

In fact, many of the tax offices and other county departments are now online and you can access the records without leaving the comforts of your own office. When accessing tax records, pay particular attention to any differences between who owns the property and who is paying the taxes because it could be different.

Wholesaling through the MLS is not impossible, just improbable. There are several reasons.

First, realtors have priced the properties. They are paid by commission. The more they sell the property for, the greater their commission. That is why most properties are at or very close to market value. Not that you can't find a good deal in the MLS but the profit margin for a wholesaler will be much smaller.

Second, realtors are a possessive lot that viciously guard their real estate market against "non-licensed professionals." Many, even most (but not all) realtors are not going to take kindly to low-ball offers from individuals that are bring buyers to pay more for a property and cut them out of a greater commission.

So, if you want to farm the MLS, go ahead, but you may find outside deals more profitable.

You do not need a license to wholesale. You are simply selling your interest in a real estate contract. That being said, some states are touchy about this area. So take some time and do some research specific to the real estate laws that govern your state to see what type of actions require a real estate license - and then make sure you do not do those actions.

Brian Sorensen, it sounds like a good deal. Buying property in consideration of the future developmental potential is smart. One way to stay ahead of the game. Just make sure that the zoning setbacks will allow a realistic development. As Joel Owens mentioned, it may take another property next door to really maximize the value of the site.

Also, you may be able to eek out some additional income if you look into conventional financing at a lower interest rate. Something to consider.

Another method is to get a home equity line of credit (known as a HELOC) or take out an equity loan on the property. You will have to check to see how much equity you can pull from the property since lenders do not like loan 100% LTV these days.

Most zoning departments are online these days and they generally have the zoning code there too. You may want to do a search for their site and see what the code stipulates.

While you are at it, take a look at the zoning map. Check and see what is surrounding the property. If it butts up to another zoning that would have greater developmental potential, there would be a good possibility that you could file for a zoning change.

Just thought I would throw in my two cents. If you could get separate meters for utilities, that would help with the expenses. Are these market rents? They seem awfully low to include utilities.

If not, if you factor in an expense ratio of 60% but were able to get conventional financing with 20% down, 30 year amortization at 3.5%, you are looking at a measly NOI pre-tax of $1,167. Not very appealing.

I guess it depends on how you are using the value. Are you evaluating the property for a purchase? Do you need to get a loan? Are you looking to sell the property?

Though a property has one market value, you may evaluate a property differently depending on how you will be using the data. If you can provide a little more information, I would be glad to answer the question.