All Forum Posts by: Luis Montanez

I once rented to a company and had no problems at all. They even fixed my house for free. A commercial contractor wanted to lease my house under the corp.'s name since they had a job near a mall in my area. Their other option was to drive a total of 4 hours each day, the lease was for 3 to 4 months. It was November and since the house was not rented, it will stay empty till March anyway. The lease was done under the corporations name so they could justify the corporate business expense. The house was empty with no furniture so it was a bunch of construction workers sleeping on the floor with air mattress. I had a few things broken around the house and they fixed them for me at no cost. One other thing to known is that a company can be reported to the credit reporting agencies just like an individual, you can also pull up there credit report to find out if they have had issues with not paying there suppliers, landlords, etc.

0 Votes

Hello friends from BP,

I am hoping to get feedback from someone that is familiar with an area called Newco in Lake City, Florida zipcode 32025.

I am cooking this deal to exchange one of my investment properties in Puerto Rico (appraised at $60k rental income at $400 per month), with 2 vacant lots in Lake City, Florida (in the process of appraisal but estimated value for each is $12k to $15k).

I will finance the difference $60k of my house and the 2 lots, so the buyer has agreed that if I was to do owners finance for $30k ($60k - $30k for 2 lots) the terms for his payment will be around $362 per month for 8 years (that includes a 4% annual interest rate).

What concerns me the most (and the main question of this post) is getting your input for the best exit strategy for the vacant land. After doing some research on the area I found the following:

1. Most home sold are 3/2 between $40k and $84k

2. Vacancy rate is 17%

3. middle to low class income area

4. mostly retired people.

Based on this information my options are:

A. to purchase 2 manufactured 3/2 homes (one for each lot at a cost of $39k each) to re-sale for $80k each (after selling and other cost) I estimated a $40k profit. the negative part of this option is that based on my research, manufactured homes may not sale for that high in this area.

B. to purchase 2 mobile homes for $5k to $10k each and resale at cost just to recuperate the $30k of the land, cost of Mobil homes and any other cost.

C. will be to do option A but to rent each for $500 to $600 per month based on what I can get for Section 8 in that area.

Please let me know what you think or if you will consider another option.

Additional facts:

1. this will not be a 1031 or like kind exchange (based on IRS info)

2. I live in Georgia, so managing my hoses in Puerto Rico have become a challenge.

3. I have never done any construction so just constructing houses is over my head.

thanks

0 Votes

@Azeez K

thanks for the info, I just registered see you all there

Luis

0 Votes

Has any one accomplished a level of success wile having as much time consumed by work, responsibilities and life goals?

In my case

Work

1. Full time job (40hrs per week)

2. Military Reservist (16hrs per month plus 80hours once per year)

Responsibilities

1. Wife and two small children (1 to 2 hrs per day 8hrs per weekend)

2. Church (2hrs per week)

Goals

1. Staying in shape (1hr per day)

2. Real estate investing = X

To solve for X

Hours in a year = 8766

Less

Sleep (7 * 365) = 2555

Work = 2352

Responsibilities. = 1040

Fitness = 365

Buffer (2hrs * 365) = 730

Total = 7042

Time for real estate investing = 1724 / 52 = 33 hours per week

Do you agree that 33 hours per week is reasonable to be a successful part-time real-estate investor?

What additional examples are you currently jungleing wile still being successful in Realestate investing?

1 Vote

@Nuhan Demirkan:

Thanks for the good advice,

Just to close and report the result of this transaction. I am disappointed to say that the deal flopped.
My bid was accepted at 15% below the listed price for oner occupant HUD home.

This house I was about to purchase.

1. Better school area
2. 14 years newer than my current home.
3. No money down transaction.
4. No repairs
5. Would have decrease my personal mortgage debit by $63,000
6. Would have increase my monthly cash flow by $500 per month.

But after I took the family to go see the house before I put in the earnest money, my wife told me she did not want the house because it was 200 sf smaller, had a smaller yard and was far from our church.

It first I was mad, since I had shown her all the details before I submitted my bids, but at the end of the day If the family was not 100% on board, I was not going to move forward with it.

Now I must regroup and come up with a new strategy for my next transaction.

Cheers

Luis

0 Votes

I just got an offer accepted for an owner occupant hud home for $160,100 plus closing cost of $4,900 paid by the seller. Originally listd for $170,000. Just inspected the house and needs no repairs other than finishing the basement.

The HUD case number and address is:

HUD Case #: 105-372644
Address: 6198 Stewart Rdg Wk , Buford, GA 30518.

I am hoping on selling my current home, current market value of $239,000 and amount of mortgage owned of $194K. Address of my home 2403 Westpor CIR. SW 30064

Please help

0 Votes

Randy and Daniel, thanks for the quick response

0 Votes

Originally posted by @Randy King:

My experience is that HUD will discount between 10-15% net to HUD for the first month or so regardless if it is within the O/O period or not. Then they start dropping the price and increasing the discount they will take until the property is sold.

So if HUD states in there counter offer that the lowest thy will accept is (as an example) $90k, 10% below the listed price. A this point in the o/o, how can I successfully get an extra 2% to 5% off?

0 Votes

My current plan is to purchase a HUD Owner Occupied property in the $150 to 200k range. I plan to sell my current home (with about $30k in equity) to pay down the mortgage and thus increase my monthly cash flow and decrease my debit to income ratio which will come handy for future deals.

However, my true question is in the subject of this post, I have submitted a few HUD offers for Owner-Occupied properties at 30% below the listing price and HUD has counter offer at 10% below the listing price. Is there a way to get the home at a lower that 10% during the Owner-Occupied period?

0 Votes

If you are just starting out, my approach would be to call at late night (in hopes of getting the voicemail) to competitors of other states to get an idea of what is working for them. The pone numbers I would get form the classified section of online news papers, or other online websites.

My personal experience in marketing (as an ex-pizzeria owner) is that is all about testing, testing, testing. Start with a base and keep a journal of what wording attracts more of what you want.

If you use the "AIDA copywriting formula" (google it) you will not go wrong.

0 Votes

All Forum Posts by: Luis Montanez

Luis Montanez has started 32 posts and replied 158 times.

Post: Oil companies wanting leases in corporation's name

Post: Exchange of Puerto Rico House for 2 lots in (newco) Lake City, FL 32025

Post: New to BP in Atlanta Area

Post: Pursuing multiple life goals at once.

Post: Please help... Let me know if you think this is a deal in Georgia.

Post: Please help... Let me know if you think this is a deal in Georgia.

Post: How to get below 10% of listing price during the HUD Owner-Occupied period?

Post: How to get below 10% of listing price during the HUD Owner-Occupied period?

Post: How to get below 10% of listing price during the HUD Owner-Occupied period?

Post: Voicemail Greeting for Buyers and Sellers?