All Forum Posts by: Mala S.

Mike H. Well, at the very least you should try and get the specific zoning info for the lot from the Building/ Planning department. There is no risk in that. Where did you get the term "multi-use" from? If I understood you correctly you are just describing the property that is currently on the lot - this does not mean that the lot was zoned strictly for multi-use.

Hi Mike,

Zoning regulations are typically very specific to location, and can change from even one block to another. However, if you have the address of the property you can look up this information online. If the info is not available online you can get the specific zoning rules for the property at the building department for free (or maybe a small photocopying fee).

If it so happens that the property is zoned for mixed-use and you want to convert it to 100% residential you can file for a variance. If a large portion of the neighboring properties are 100% residential, this will work in your favor. You will likely need an architect to create some plans and elevations and/or renderings to show your proposed building will fit in with the neighborhood. An local architect is a good person to ask to see how likely it is that the variance will go through.
Also, when applying for a variance you have to publicly announce it (in the paper or with a sign on the property) so any neighbors who may object have the opportunity to do so. If you don't think neighbors will have a cause to object to your proposal that is also something that will work in your favor.

I hope that helps!

Mala

Chad Ballard Thanks for the great info about the cap rate not including financing and about the 50% rule. That's exactly what I wanted to know.
Thank you!

Corey Jacobs actually it was (12,300/4) x 100 = 307, 500
sorry, i guess it was confusing the way I wrote it.

basically I was dividing annual net income by a market cap rate of 4%.
But really a cap rate of 6-8% is more realistic for that area. An appropriate cap rate in your area will likely be drastically different...

Matt Devincenzo GREAT POINT.

Ok, I'm convinced this is a waste of time.

Thanks for all the feedback. I'm learning a bit more every day...

Thanks everyone for all the great advice and knowledge!
I'm so glad I could reach out to this community for help.

I do think the seller would be willing to agree to an assignable contract.
The main issue is getting her down on the price.

I agree that this will most likely be a waste of time...

That being said, Ben Leybovich, it was my understanding that I could have a "subject to partner approval" clause in the contract that could allow me to get out of the contract (say within 30 days) if I am unable to find a buyer. This way I would not be "on the hook" for the property if I can't find a buyer. BTW, I ABSOLUTELY WOULD NOT tie up the property in contract if I am unable to get the seller to agree to a well below market price that would be attractive to an investor. I WANT TO SELL the property, not tie it up and waste my time and the seller's.

Ryan Thomas Hmm, I will be looking into skip programs now, thanks! I've learned like 10 new things today :)

Omg, I'm glad I asked the question! The thought that this might be illegal crossed my mind but I figured the seller knew enough to know not to propose something illegal!

So, it seems like my only route is to get an assignable contract on the property.

But Ben Leybovich, I don't understand when you say:
"Be careful! There is not going to be any equity, unlike a wholesale deal. If you find a buyer and they back out, you will still be liable for specific performance with no options since there won't be an equity spread..."
??Ben, can you please explain this to me, I am a newbie...??

Btw, Wayne Brooks, I agree that her asking price is too high, proven by the fact that it didn't sell when previously listed and bc the numbers wouldn't work for me/any investor. But I am hopeful that I can bring the seller down to earth with time. Maybe I am wasting time with this situation (and probably with others I have been talking to as well), but since I am new to this, I'm happy to hustle a little extra for little or no return. If nothing else I will learn something...

Hi Tony Thompson , I am a newbie myself so I dont know how much help I could be. But I am curious, where did you get your list of homeowners to market to? What were all the different sources?
Also, what criteria did you use to narrow down your leads?
What kind of yellow letter did you send? (what was the text and what did it look like). What was your total cost per letter? (list + paper + ink + stamp, etc)
How many calls did you get so far in total? How many were tire kickers/ how many were annoyed/ how many were kinda sorta interested?

Sorry for all the questions! As a newbie, for me it is helpful to hear what other people have tried and what worked best and what didn't. It can help me decide what to do next.

Btw, I have never tried a bandit sign. How many calls have you gotten from those?

Also, I don't know about your area, but in NJ/NY it is pretty easy to track down an owner of an abandoned property for free (or very little cost) so I don't see why you should waste your money on a skip trace service.

I am trying to get started in real estate investing and sent out a direct mail campaign last week in search of motivated sellers. My hope was to invest in at least one of these properties and potentially wholesale any other deals I may come across through my marketing.

But now, one of my not-so-motivated/ motivated sellers offered to pay me a finder's fee if I can find a buyer for their property at fair market value.
(the seller is sick of dealing with RE agents and offered me half a typical RE commission).

I have a great rapport with the seller and am happy to help them out, and wouldn't mind the extra cash. I also think this could be a good learning experience.

So will I ruin my rep as a wholesaler if I start marketing a property at fair market value? I feel like I have a conflict of interest here...

Has this happened to any other wholesalers out there? Has a seller ever offered to pay you a finders fee to get a full priced buyer for their property?
How do licensed real estate agents feel about this?