All Forum Posts by: Account Closed

@Tammy Tivis He wants to know you are serious and he wants to know how he is going to get paid. With Creative Financing, he wouldn't know what you have in mind and if he would ever get paid. You need to discuss that item with him so there is no question in his mind. Obviously he has been burned. That is what makes him experienced.

@Chris Engler What an appraiser is supposed to look for is "livability" first. The roof is supposed to have at least 5 years life left to it. 

Appraisers try to find 3 houses that *sold* in the last 6 months within 1/2 mile of the subject property that are similar in style and year to use as comps. 

They look at location, square footage of the property, number of bedrooms, number of bathrooms, garage (or parking), whether it is ranch style or multi-level, a pool if kept up can add ~$5000, and if the house has recently been remodeled they may increase the value some. 

You can very easily *over build* and *over remodel* for a given neighborhood. It rarely adds much to the appraisal when you do. Remember, it is "like properties" that have *sold* that are going to give you the closest approximation to what an appraiser will value a property at. Take a look on the MLS and view the pictures of your competition (houses for sale) or better yet, if you have access to the houses that have sold to get an idea of the level of finish you need.

This isn't the appraiser's first rodeo and he wants to be re-hired for the next job by the bank, so don't expect any favors.

Anybody who stayed too long in the 2008 market would say Greed. ;-)

@Kate Weinberg There is some simple math to do. $300k would get you 12 houses with a cash flow of $500 per house and a cash down in your pocket of $10k to $25k per house with the least risk using Subject To and Tenant Buyers.

I was booted out of the International Physicist's Consortium because I theorized that the quantum wave length of cobalt 7 added to the instability of the linear mass of Wall Street's hyper volatility leading to the melt down in 2008. So, I had to go find a job and real estate investing was the only one that would have me after such a shameful rejection of my assertion. 

 Depends. Will you have the property 3 months or 6 months? If you don't net $10,000 per month that you own the property, what's the point? 

I can get $35,000 for each "Subject To" I do, and it can take 1 month to 2 months but I can be doing 2 or 3 at a time. So, your time frame return is more important. (It's actually a better return than that but I've already posted the numbers in a previous post so I won't go into it for this discussion.)

@Riley C. Your best bet is to talk to a mortgage broker instead of a bank. Try @Chris Mason

Subject To is becoming more in demand as the market is changing.

 Another term you might look for is "Subject To" - it is similar to "Buy & Hold" (the focus is on "cash flow") but is a little more complex and is most successful when taught. There is a lot on BP about "Subject To".

@Hannah Stephenson If you are at the "break even" point - sell it on Owner Financing or Lease Option with $50,000 down - no bank needed. Dump the real estate agent - you don't need one for this type of sale. You then get some money out of the deal and someone gets a nicely renovated house. If more details are needed, let me know. This one is a "no brainer" for me.