All Forum Posts by: Jacob Evans

Any interest in buying a fixer, site-unseen, if the price were right?

1st, here's an unrelated pic from my private collection:

*Having some fun downtown. I liked this guy's marketing.

This seller has been unable to coordinate a showing with the current tenant to verify rehab costs, so a tour of the inside prior to closing will probably not be possible. I don't even have any pictures... This one will have to be bought site-unseen.

I've purchased over 50 site-unseen properties at the foreclosure auction. In my opinion, the best thing to do is just rely on budgets from past, similar projects, assess the inside based on age and exterior condition and then... roll the dice.

The seller lives out of state, bought it site-unseen at the tax auction and has never been inside. He's selling because he'd like to cash out his equity.

* Financing Available.

Call, text or email to claim this deal asap!

Best comp

Comps

County Info

Address: 16117 E Wellesley Ave, Spokane Valley, WA Purchase Price: $120,000 Rehab Costs, est: $unknown.

The exterior looks to have some deferred maintenance, but given the age of the home I wouldn't anticipate much more than a cosmetic remodel inside.

After Repair Value, est: $210-230k

Rent, est: $1,400 - $1,600+ ($1,335 according to rentometer.com)

Cash Flow, est: $544 - $744,

assuming 4% traditional financing on 150k ($856, estimated PITI payment).

1 Yr Cash On Cash Return, est: 15% - 21%

(assuming out of pocket expenses of $43,300:

($3,300 closing costs, $30k rent grade rehab) - all or some of these expenses can probably be rolled into your loan...

Closing Date: Feb 26th, 2018, or sooner

Property Stats:

Currently a 3 bed, 2 bath, 1,700 sqft with a 1 car garage, and a partial basement on an oversized lot.

Ideal Exit:

Ideal exit strategy is a lease-option, long term private money rental, or BRRRRRRRRRRRRRRRRRR.

To secure this deal please complete all of your due diligence and deliver a check for $2,500, earnest deposit that's contingent upon viewing the inside of the property.

Happy Hunting!

--
- v/r -

Jacob Evans

CEO | Broker

(509) 413-6539

Spokane's Superior Solutions LLC

601 W Maxwell Ave Ste #3

Spokane, WA. 99201

www.SpokaneSS.com

Licensed Real Estate Services provided by

4407 N Division St, Suite 200

Spokane, WA 99207

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The etiquette is pretty straightforward. The seller is a landlord so I'd just let em know you're a landlord too and need the deal to make sense on your end. 

"Mr Seller, maybe you can help me pencil this out, I'm pretty new to this..." might even be a good icebreaker and it'll show them that they need to be reasonable about their asking price. "Okay, so I pay you X, Mr Seller, and then my monthly payment is Y and so my cash for expenses/cash flow will be Z... Gee, idk about these numbers... what do you suggest...?"

@Bo Baker I'd try to dig up as much info about the numbers to determine if you'd be able to make it cash flow. 

Then determine what your monthly mortgage payment would be at your max offer and negotiate below that price on each property. 

Also, how much cash would you need to come up with to put the deal together at that price? Rehab? 

Then run the numbers and determine if you're okay with it taking you x-months to re-coup y-cash out of pocket (Cash On Cash Return). 

Mr Seller, do you have an asking price in mind? (price) 

Are you going to reinvest your proceeds and if so have you considered owner financing as an investment option? (terms) 

Sounds like a cool place, why are you considering selling (motivation/flexibility)

Personally, I suggest verifying that the two of you are in the same ball-park about price before investing too much time. 

The main question to have answered is - will he sell low enough that you'll be able to cash-flow? 

I also like rentometer as a benchmark, but currently, it seems to be about $100-200 low on monthly rent estimates. Spokane has a dangerously low rental vacancy rate at the moment, which is driving up rent prices. It is likely a bubble because a lot of the new construction projects seem to be aimed at the rental market. 

PM me your email address and I'll send you our wholesale deals as they become available. We continuously prospect multi-fam properties for investors. 

I'll be at this investor meeting tonight. Usually some good, free networking and education...

https://www.meetup.com/Next-Gen-REI-Club/events/246769818/

I'll plan on attending!

I can probably make it to Thursdays meeting and will have time for a few beers after...

Originally posted by @David Christensen:

"...Roofers, HVAC, Electrician, and Plumbers in the Spokane WA area?

I just pm'd you contact info. They've all completed multiple jobs for us and beat out the other bids. We've flipped over 200 properties throughout Spokane County. Let them know I referred you. 

Hey Bo, I've bought a few BRRRR deals, but mostly focus on wholesales and flips. I've been a full-time investor in Spokane since 07' with over 200 transactions. Lets trade notes sometime over lunch.