All Forum Posts by: Kelly Kormos

@Derek Kirkwood I did calculate cap ex so good there!  I will find out about landlord paid expenses.  Thank you!

@Derek Kirkwood the expenses I used were taxes and insurance.  also repairs and vacancy done separately.  What am I missing?  Thank you for response!

Email I received:

"Deal fell through do to financing and we are looking for a quick close.

3 beds 1.5 baths each side with a living room and den or potential 4th bedroom downstairs.

Both have a single car garage and an additional storage space.

Total Square Feet 2,675

Lot is 50 x 169

One side in great condition and is rented to a relative MTM. The other side is vacant and needs to be rehabbed to rent. Probably about 10k to get top rent in the area. Roof is less than 5 years old HVAC and Windows are new. Both sides can be rented for $1,400 each.

Asking $235,000"

** No pictures sent and none in the MLS from previous listings so they have been requested

** Numbers I calculated if they will take a financed offer.  I do not want to pay cash- it would be all I have- if this is a mistake, please let me know alternate solutions.  I am open to being creative.  

$2,800.00MONTHLY INCOME

$1,749.56MONTHLY EXPENSES

$1,050.44MONTHLY CASHFLOW

10.09%PRO FORMA CAP

$23,702.00NOI

$76,298.00TOTAL CASH NEEDED

16.52%CASH ON CASH ROI

10.09%PURCHASE CAP RATE

--Any thoughts or opinions on this?  What additional info do I need that I should gather before going to see the property? 

Thanks so much!  

Has anyone used the Next-door app to find investment properties? Searched BP and only saw discussions of using the app to keep eye on rental property neighborhoods but wondering if good idea to post to find homes? If anyone has with some success, could you share what you posted and the results? Thanks and hope everyone is enjoying the holidays! I am as well but my mind never stops thinking about REI! lol Thanks!

In my market, I have closed on homes in as little as 3 weeks but most lenders are 4-6 weeks for conventional loans.  The big box, national companies may do things differently and end up taking longer.  Cash is king.  So if someone is distressed (distressed or not, cash is preferred) and they need to close with very few hiccups, they want cash.  No appraisal required with cash.  No financing that will fall through with cash.  People are more willing to talk to someone with cash and def more willing to give them a better deal for the lack of risks involved.  I always tell my clients, the more risk your offer has, the more money you should be prepared to spend to get the home.  We are in a very competitive market so this is a reality for us.  Not sure about your area.  As for why is noone marketing "they can use a conventional loan to buy properties"- 1. Bad marketing and doesn't grab anyones attention.  2. Its not that rare.  Probably a ton of people that could buy with a loan and have all the risks involved.  But someone with cash that wants to buy and eliminate those risk for the seller is much more rare and much more sexy to the seller.  Hope this helps.  

@Antoine Martel I like to FB ads for some things but still have a lot to learn.   Can you give an example of your copy and what you use as photos for any that have been a success??  Same as the postcard just digital format?  Also do you target low income, like to move, etc???  Thanks!

@Joe Davalos Thank you so much!  I am actually meeting with someone this morning I has a list of every home in my county separated out by level of distress with a photo!  I am hoping the list is what I am thinking it is and then I could start with researching the equity as you mentioned.  Being an agent I can access some of that pretty easily.  Would you mind if I reached out to you once I get a feel for what Im working with?  I want to have a productive conversation and not waste your time!  I will send a colleague request so we can connect easier.  Thank you for your willingness to help and teach others.

@Joe Davalos I would love to chat with you about your direct mail marketing success and how it was achieved. I have been pouring through these forums for some pushes in the right direction and as you have mentioned, many vague answers, or maybe I am not putting the pieces together (the latter could be very true haha). I am working on quite a fine list of distressed properties in the area, absentee owners, etc. but have not started my marketing yet. I have funds set aside to do it so just trying to have a little plan of what I am doing before I start without over analyzing it. I am an agent here as well so I am able to access the tax records and MLS which I believe will help! Any advice is very much appreciated!!!

Hi congrats on getting your license! Quick question...are you reaching out to people and sending direct mail to investor type properties or your typical buy and sell home? I got my license about 4 years ago in November as well and the first thing I did was join a team that offered leads and training. I focused on those 2 things hard core my first year and it went very well. Direct mail has a very low response rate the 1st time you do it and have to do it many times to start to see the higher responses. FSBO are also kind of tricky so it might be a good idea as a new agent to really focus on education and finding a way to get leads from someone spending the moula to get them. Will be a larger cut on your sales commission but it is paid training as far as I am concerned and dues you pay to learn the biz! I made a ver good living my first year doing this and it has only expanded from there! Maybe google different real estate terms in your area and if you see the same people popping up over and over, you can bet they are paying for leads and might be worth reaching out to learn more about their team/brokerage! Let me know if you have any questions.

@Oscar Zendejas @Account Closed Hi I am looking for an investor friendly contractor as well in Chattanooga area.  would you mind sending me contact information as well?  I would like to begin reaching to some people asap.  Thanks!