All Forum Posts by: Ken M.

Ken M. has started 162 posts and replied 1857 times.

Would any of you move forward with a sale under these circumstances?

The buyer says in text messages that he is the actual buyer, will not list or market the property, and will not enter the property before closing.
However, he refuses to:

Add an addendum or put any of this in writing,
Modify the wholesale clause, and
Change the clause granting unlimited access before closing.

He keeps saying it’s a “standard contract.”

Would you proceed or consider this a red flag? Looking for input from experienced investors—thanks in advance.

Ask for a $5,000 non refundable security deposit. See what he says.

Since we haven't seen your proposed contract, there is no way of knowing if you are doing it correctly. He may be just wanting the address so he can talk to the seller directly, to sneak it away from you. We have no idea what your contract allows.

However, if he is a legit buyer, you needn't worry about adding an addendum or modifying the wholesale clause. You should limit him though to specific days & hours as allowed by the seller. Surprise visits will blow the deal..

0 Votes

Hammond, Indiana

Buying an "Off Market" property "Subject To" and Selling "Lease / Option"

If you have questions regarding details of the Spreadsheet or want a free copy

https://housecashaz-qloag.wpcomstaging.com/2024/01/04/dm03-learn-10-low-cost-ways-to-buy-a-house/

Or email a request to [email protected]

When buying a property to cash flow, you need to know what your expenses are. The following is one I actually purchased that was a pre-foreclosure. The seller and I negotiated the terms. I did not offer a number to him, he told me what he needed. This first portion is the end result. The following portions are how we got there. Click on image to enlarge.

The house was not suitable for the MLS. The seller had waited too long to fix the problem and just wanted out. He said he needed $10,000 so he could move back to his home state. So, this is how we put the deal together.

First, you determine ARV (After Repair Value) so you can see if this one is actually worth buying. In this case it’s worth 245,00 fixed up. (ARV) You enter the existing 1st loan payoff. It’s probably the one in pre-foreclosure. We’ll take care of the arrears in a minute.

We always go through Escrow and Record, so we need to account for those costs. We Record because it’s the right thing to do and we want to know about any actions that come up against the property. Some people say don’t Record because of the Due On Sale clause, or to use a Land Trust to defeat the DOS which is bad information. If a lender wants to enforce a Due On Sale, a Land Trust violates the DOS anyway so it is ineffective in stopping the Due On Sale call.

Line 35 is always negotiable, but the seller needs enough to rent an apartment and move their belongs or they will become squatters which causes serious problems.

And of course, since this is a pre-foreclosure, the arrears have to be brought current.

Sometimes, a property will have a second loan or lien. Usually those can stay in place, but sometimes you have to pay those to buy the property.

If you have questions regarding details of the Spreadsheet or want a free copy

https://housecashaz-qloag.wpcomstaging.com/2024/01/04/dm03-learn-10-low-cost-ways-to-buy-a-house/

Or email a request to [email protected]

When you are new, looking for lenders & considering Fix & Flip, BRRRR, or rental, as a buyer, I'd ask the owner/seller to be one of my private lenders with creative financing. This works in Southern California (CA), AZ, WA, and GA & TX.

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Quote from @Troy Jones:

I’m looking to connect with other investors, share ideas, and learn what strategies are working today. I’m exploring a few options—buying a long-term rental property, house-hacking a new primary (maybe a multi-family) and rent out my current property, or even try short-term rentals for potential higher cash flow and tax benefits.

I'm Excited to learn from this community as I start my real-estate investing journey.

Howdy. Are you fully funded and ready to go or looking for funding and direction?

Since you haven't replied to all of the greetings and helpful advice in over 9 days, I'd guess it's a pipe dream. :-)

0 Votes

Phoenix, Arizona

Quote from @Stephen De Vita:

Hello,

Does it make sense to have an appraisal contingencies if you are doing seller financing?

Stephen

Or, you can learn how to "comp".

0 Votes

Charleston, South Carolina

Quote from @Jacob Havlovick:

Hello everyone,

I am managing a duplex in Peoria, AZ and my tenant has brought the concern of package security. In this day and age, let me say I get it, there may be porch pirates, theft in general, etc. People are looking for a way to secure their things while also keeping them out of sight. They also want the convenience of accessing their box at home rather than going out of their way to a specific location.

So I am reaching out first, to ask if you have come across this. Second what you have done? As I see amazon has secure drop box locations, a post office may do this to a certain extent, and certain retailers do this. Which wouldn't address the convenience factor, but I do want to provide a reputable living situation to reduce tenant turnover and increase referral rates.

There is a hilarious "Ring" clip on Youtube where an Amazon delivery guy is bending over to leave a package at a house and a guy appears out of nowhere. He grabs the package just as it hits the ground and is off running like his life depended on it. The expression of the delivery guy, who was probably 30 lbs overweight and not about to chase after the thief,
was priceless.

Unless we take those guys off the street, sending it to a post office is the best option. Your tenant has the option to shop at the mall.

0 Votes

Peoria, Arizona

Quote from @Brandon Lee:

I’ve been connecting with different investors lately and noticed many are shifting away from banks toward alternative lending.

What's been your experience? Are you using private capital, hard money, or JV partnerships to fund your projects?

The only way to make money in this climate is to use creative financing. Taking over existing loans. It has to be done correctly, but it works.

0 Votes

Quote from @Samantha Kallsen:

I am in a place where I am ready to begin but I am struggling with these 3 things.

1. When using Bigger Pockets "find deals" and figuring out cash flow, the analysis shows taxes in two places. What is the difference and why is it calculated (deducted) twice?

2. I have found a storage unit facility for $215,00 in TX that I would like to purchase but I'm struggling to find a lender that will loan that amount. Any suggestions?

3. When calculating the NOI on a property, how do you know calculate it without knowing that the current owner is paying for their loan if any. Couldn't the NOI change drastically depending on what the owner's loan is?

Why are you concerned about the owner's loan?

It would be unusual to find a lender that will lend 00% on a property.
You may need to consider creative financing.

1 Vote

Quote from @Brendan Wages:

Good morning,

I'm 24, active-duty military, currently own 2 condos-1 long distance rental with tenants, the other primary residence w/ a roommate tenant, in San Diego. I recently discovered that I absolutely abhor roommate living and started to entertain the idea of selling my current primary residence (2/2) and downsize to a 1/1 so I can comfortably afford a mortgage without the need for tenant rental income to offset cost of ownership.

With that said, I bought my current residence, the 2/2, in March 2025 and will have to sell at a loss. It looks like, according to my realtor, I would need $30k-40k in order to completely payoff current loan (after selling), cover down on closing costs, fees (realtor's quote 1%), deposit or downpayment on a new property. I would love hear hear some opinions on this. Is it worth it for my peace of mind? I am truly going crazy with a roommate... I know for $10k, I'd cut my losses and do it without a second thought. But $30k-40k is a lot... or is not, in the grand scheme of peace of mind and long term appreciation of a 1/1 condo in San Diego?

Additionally, I know I have the option of renting the unit out entirely and then renting a studio for my residence which would put me in a similar position financially as my current situation w/ the roommate. Open to any and all thoughts, suggestions. Thank you!

-Brendan

Have you ever calculated the expense of selling?
Usually it's 5% for the real estate agent, a few thousand for fixing things, sometimes 2% for concessions, and closing costs.

Have a "qualified" agent give you a net proceeds report to see if it's what you want to do.

1 Vote

Quote from @Ken M.:

Quote from @Jeff Cichocki:

Your post says you're not a lender, but your website says you are...

Hmm, I'll have to look. I am not a lender.

What I do is help people avoid needing a lender.

Nope, just looked couldn't find where I said I am a lender.
Which section were you looking at??

0 Votes

Quote from @Jeff Cichocki:

Your post says you're not a lender, but your website says you are...

Hmm, I'll have to look. I am not a lender.

What I do is help people avoid needing a lender.

Here is what the website says in Big Beautiful Print

We Buy Houses Fast For Cash
Any Condition / Any Situation"

I think it says we Buy Houses

0 Votes

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All Forum Posts by: Ken M.

Ken M. has started 162 posts and replied 1857 times.

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