All Forum Posts by: Jeff V.

The seller should be the only one that can counter your offer.  If the Realtor did tell you the offer amount of another investor's offer that would kind of be against their code of ethics.

While I don't have an answer for you, I would check into the Dodd Frank and CFPB  acts that are coming down the pike.

http://www.investopedia.com/ask/answers/13/dodd-fr...

I'm not a lawyer but from what I can get from this act in regards to real estate financing, even lease options with rent credits will be considered financing and regulations will apply.  There seems to be big changes effecting creative financing in the near future if not already in place. 

I would offer them first shot at purchasing the property at the very least. 

If they weren't interested or don't have the means to purchase, at least you gave them first shot and shouldn't have any hard feelings. 

Just a thought. 

You can use Podio as a CRM and build a form with lead information that you want to capture and then embed that form into your website. The user fills out the information that your interested in and the lead goes directly into your CRM. You can set it up to notify you or your VA immediately when a lead comes in. Then you or VA could log into podio give them a call back and record all of the rest of the information that you want from them. A CRM App can track that lead through the whole process.

Be forewarned that Podio has a learning curve, but is VERY customizable and relatively easy to learn.

I'm finishing up a Buy, Fix and Hold deal and about to put the property in service as a rental.  This question is for anyone with bookeeping/CPA experience.  I'm sure it's a basic task, just one that I've never done and not sure how to do at this point.

During the Rehab I've been recording the "Expenses" as Labor, Materials, Equipment Rental ect. to keep track of everything.

Now that the property is going in service I'm thinking that on the books those expenses should be re-categorized over to show an increase in value (basis) of the property in order to capitalize and depreciate the asset.

The problem I'm having is not sure how to do this and can't find any good references for doing this with Google searches.  I'm sure there are multiple ways to do it that will effect things later either positively or negatively.  I'm hoping to avoid the negative methods if at all possible.

So my question is, How do I re-categorize the expenses during a rehab to reflect "Capital Improvements" in the property and increase in basis?  And Is this what i should be doing?

Deal Info:

Purchase Price 20k

Rehab 65k

I hope this is enough information to answer my question.  Any help will be greatly appreciated.

I will have all of this looked over in June/July time frame but just wanted to straighten up my books a bit before checkup so they are more accurate.

Hello Fellow Investors,

So I have a potential deal and curious if I could bounce it off you guys/gals.

Here are the numbers:

4/2 1600 sq ft. 

Excellent Neighborhood Plenty of Tenants and quick Rentals at Market Rate

Asking Price - 65k

Est Repairs - 30k

Market Rent - 1200 - 1300

ARV - $123k conservatively (Comps run up to 150k lowest being 123k)

VA REO Foreclosure

Assets available to leverage:

8k Cash

100k LOC 6% Interest Only

Ability to obtain Traditional Financing on Completed Property and/or purchase. (Good Credit multiple Partners)

Exit strategy - Rental (For this Analysis)

Goals - Cashflow and to provide 20% Cash on Cash Return

So my questions are:

What would your MAO be for this Rental Deal?

Once you determine MAO how do you come up with a "Starting Point" for negotiations?

If you use something other than Cash on Cash Return to determine if it's a DEAL what indicators do you use?

In your Opinion is this a DEAL given the assumptions in the scenario are accurate?

How would you structure this deal given the "ASSETS" that are available to leverage the deal to provide the best returns?

If you were currently in the GROWTH phase of your business would you be Focus on Cash Flow or Equity Growth and why?

Any advice on this (possible) deal or in general area of deal structure, analysis and the early phases of business start up would be greatly appreciated.

What are your thoughts?

@Sophia McMillion

DeRidder is my market area.  You are correct that the rent is over priced for the area.  Also you hit the nail on the head, there is not many rent houses to choose from, which is why the rent is over priced... the supply is low and demand is high.

This in turn presents a great opportunity for landlords.  You get premium rents and your possible tenants are plentiful due to Ft. Polk being nearby.  Right now is a good time especially due to the re flagging of 3/10MTN to 4/10MTN and lots of people transferring out and lots transferring in from Ft. Drum. 

There will be opportunity during this transition phase over the next few months for sure.  People will need to sell quickly to transfer to their next duty station.  This means they will be more likely to accept a quick cash offer vs holding out for premium prices.  Great time to snatch up some rental properties.  Then the unit will be moving in and will need housing.  This provides another opportunity to either flip some of the rentals to a retail buyer or provide rentals to meet the demand, whichever exit strategy you prefer.

Either way there are some good opportunities here in the DeRidder Market.

If you have any more questions about the area, I'll try and answer them to the best of my ability.

Thanks,

Jeff V

@Robert Leonard 

I sent a join request to the Meetup group in LC.  Hopefully I'll be able to make the next meeting.

Thanks,

Jeff

I will not be able to attend.  I'm working evenings currently. 

Jeff

Pizza sounds excellent, I have heard Tony's Pizza is good in LC.

Let me know what day/time is decided and I'll try to be there.  I'll be in rotation at work on the graveyard shift until the 26th Feb.  After then I should be able to make the trip.

We have a new investor here in DeRidder, LA, maybe he would be able to attend as well.  @Michael Glorioso