All Forum Posts by: Lynn Bown

Welcome to BP.  From North Port Florida.

Lynn

Welcome the the BP group.

Lynn North Port Florida

Read you lease agreement as to the responsibilities of maintenance if they are outlined correctly this can be a reason for termination of Lease.  Be careful since you may end up in court which will expect proof of the conversations above.  Start your communications in email or text so they are recorded.  If email send with a notify receipt option so you have proof he received.  Also I would send a formal "default letter" of his responsibility in the lease with request for compliance and answer, by registered mail.  There are several agencies that help with poor landlords and give legal guidance.  NOTE this is not legal advice and should not be misinterpreted as such, I do advise you to consult legal counsel, or the housing authorities, for the appropriate decision in how to proceed. my CYA statement LOL

Guessing your taxes at 2500 Yearly and a vacancy rate of 15% and a purchase of 190K + repairs of 30K and without the P&L from the owner (using Standard capex and costs) your estimated net is 11,904 yearly (without out taking into account Water Sewer Garbage Gas Electricity Lawn care Pool Maintenance) that is a caprate of 5.4%. Then you need to get your (as is) value and your ARV value and calculate the appreciation forced and % yearly for your area for long term resale value 1,5,10 year and new cap rate bases on a 5 year refinance at 5% from the 8% private money im figuring on a new purchase.

So many missing variables, but this is a rough estimate based on guess, get all your variables and do the numbers again.

Lynn

Welcome Leslie to BP.  Lynn from North Port FL.  If you need anything drop me a line.

Hi @Melissa Gittens Im north of fort meyers in North Port If you need anything in charlotte or sarasota counties im glad to help.

Welcome to BP

To add to @Amadeus Hladun explanation which is very accurate.  Sometimes It can be both since after Lis Pendens is filed many owners take action and try to sell the home "short" to not go into a foreclosure.  The pros and cons are:

Preforeclosure: if the owner is well seasoned there are deals to be found in paying off the balance under contract or buying the property with enough to pay the seller costs and give them a little to move.  Its a timing after Lis pendens filing game.

Short Sale: This process can be very long since many times the bank will have an inflated value of FMV and therefore decline many offers. If you look for short sale investments interview the agent and ask if there is a bank approved price yet. Example: loan balance is 100k owner applies for a short sale with their bank and lists the property. They get an offer for 70 but it is rejected with a counter offer for 85k the 85 is a pre approved price. This will make the process of buying for 85k faster (still longer that normal sale). The agent will only have a pre aproved price if they have been through a rejected offer and either ask the bank for it or were countered with it. The agent experience with Short Sale is the first thing I look at or if you have a new to "shorts" agent you can waste a lot of time on the process.

Oh btw be sure to understand the fees/commissions.  Some of the majors will have mandatory desk fees, transaction fees that can add up to 1,000s per year.  Starting out that is a tough pill to swallow though it has it benefits.  So be clear with them as to what is required and what the monthly is so your are not taken off guard

Being new with a license there is alot to learn and the best place is a major KW Remax etc.  Remember your are not looking for a position your are interviewing them for:

1. online presence
2. tools they provide
3. floor time and how you get it
4. How many listing/sales they do yearly vs number of active agents
5. leads and how provided
6. @Carrie Hiner as he said EDUCATION

7. what they do for a new listing in marketing
8. Mentors and guidance

In the school online or in person you learn alot of laws, disclosures and the basic math.  there is so much more to learn.  I started at the biggest broker in California 10 years ago and learned so much of what i needed to do so was glad it did

I now work at a smaller (16 actives) Brokerage where I get more freedom to specialize in investing, and service investors which is my strength and a smaller Broker will usually give more perks in marketing, leads, and guidance in tough deals and have more appreciation and better commissions.

Summary:

Start with the majors
learn what you like and define your specialties
Move to a smaller broker when you are seasoned.