All Forum Posts by: Keith W.

Thanks for the insights. For utilities I might have based assumptions on my own single family experience.  

This is an off-market property listed at $85K. There seemed to be a lot of interest in this property, so I anticipate at least offering the asking price. 

The wholesalers' estimate of repairs was $63K. Knowing he's looking out for his own best interest, I estimated repairs at $100k. This gave an infinite cash on cash return. 

As this is my first deal and I want everything to be smooth as possible, I added an additional $50K to be safe. 

For $85K to purchase and $150K for repairs, the report kicked back over 800% cash on cash. Is this a correct number?

How does the deal look overall?

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Ok thanks for that! 

Frankly, I don't want to put up earnest money. If the seller request, I will offer 1%. 

@Aaron K. I assume the seller will set up an escrow account? As the first viewing, I will not have my contractor with me, I would write in the contract that if he determines rehab to be over a certain percentage that the seller quoted me, I can back out or resubmit a new offer. 

@Carl Millsap Should I expect the seller to write the purchase contract and I retain my title company? 

The property you sold in November... did you require earnest money? Would you mind disclosing the percentage, or the amount? 

I'm just used to working with banks, lawyers and realtors who guide you through all of this. 

Hello - I may be putting in my first offer on an off-market property in a day or so and have some confusion about how this should go and don't want the seller to be my guide. 

The main question is: are Cash deals different than conventional loan deals?  

For example, will the seller expect earnest money with my offer? With an "AS-IS" transaction, what exit strategies do I have? 

I'm working with a private investor. Our arrangement is he will provide acquisition and rehab money in one loan, all upfront. Is he supposed to submit the money to the title company or escrow? 

Do I have to provide loan docs to the title company or whoever? Does he have to cut a check for the purchase of the house then another for the rehab? 

With conventional financing, I have to account for where money is coming from; Can't I just present a check for the amount with a private seller? 

For the record, I'm pretty sure the seller is a wholesaler looking to assign the contract. 

Any input would be greatly appreciated. 

The starting bid is $144K. We will convert from (3) 2bd room apts to (3) 3bd room apts. Is there a certain number I should target to cashout during refinance? For instance, I can run this report at a higher number and get a 12% Cash on Cash return. However, I may only get around $14K clear after cashout refinance. I would want at least enough to use as a downpayment for the next property. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Thanks for the input!

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This Bank Owned property is listed at $150k. ARV is $346K. It will require complete renovation including down to the studs, reconfiguring the layout and adding a third-floor loft-style apartment. All major components are needed. HVAC, Electrical, Plumbing, Framing, Roof repairs, Flooring, Framing, etc. 

My contractor estimates the repairs at $200K. Since I know I can't get the property for free, as you can see in the report, I'm looking at offering $50K. (Almost free!)

I'm still wondering if its too much risk for the first time out. 

Yes, and thank you. I think I solved the situation. It’s just that when you’re on the outside looking to get in, all the talk is how to get into real estate with no money of your own. Once you’re in, it not that simple. 

To Lisa - From what I gather. A hard money lender is more like a company. Registered or licensed to work in the state. Maybe there’s some regulations. A private lender is a person or group with some money willing to lend it to you. This could be a friend or associate. It seems like no rules. No recourse. 

In my life experience, the larger the transaction, the more scammers and people out to get you. Losing a couple grand because you were ignorant about something and made a bad choice is one thing but losing your home to scheme is another.