All Forum Posts by: Melissa W.

Hello, I am interested in continuing to read Micheal Noto's posts.  The title was, "Diary of a flip".  The property was a 4bd, 1ba and was going to be converted into a 3bd, 2ba.  I'm interested in the numbers only in todays market.

Thank you.

Melissa Warren

Don't beat yourself up Dawn these things happen.  The positive outlook is that you will know to estimate your repair costs and other costs at a higher percentage.  I have the luxury of having a General Contractor in my pocket, which is my husband.  Most General Contractors will come look at the property and give you a free estimate.  Just make sure they come highly recommended. There are so many unethical contractors out there. 

I wish you all the luck in your next venture, and I know it will only get better as you learn from your mistakes.

Melissa

Originally posted by @Dawn Johnson:

Originally posted by @Melissa W.:

Hi, you cant be afraid to low ball an offer even if your agent says the seller will never except.  

I wish I had done this/received this advice, so I second it. I thought I was negotiating well (25K below asking, and 80K below tax assessment), but the prior owner/investor did not keep anything well maintained, and I saw the 25K I was so proud of having "saved" myself quickly disappear in repairs.

Hello Community:

I attended a dinner party over the weekend and three of the couples who attended are currently looking to buy homes in the North Park area of Irvine, CA. They all transferred here from other countries, and have come to realize that the homes in this area are extremely high. They are looking for homes in the mid $400,000's and can not max $500,000's. TLC homes are ok. As they all are families, they would need at least a three bedroom home.

If anyone has information, or knows a good investor agent that can assist in this matter, then please contact me via email at [email protected].

Thank you.

Melissa

Hello Community:

I attended a dinner party over the weekend and three of the couples who attended are currently looking to buy homes in the North Park area of Irvine, CA.  They all transferred here from other countries, and have come to realize that the homes in this area are extremely high.  They are looking for homes in the mid $400,000's and can not max $500,000's.  TLC homes are ok.  As they all are families, they would need at least a three bedroom home.

If anyone has information, or knows a good investor agent that can assist in this matter, then please contact me via email at [email protected].

Thank you.

Melissa

Hi Andrew, Austin is a nice area. Unfortunately, it became the new Newport Beach of California. I know many individuals that moved their from here because they could have a better life style. The properties their seemed like a steal for these guys compared to what they could buy here. I looked into Austin a few years back, but at that time there were regulations on what you could add or not add to fix up a property. I then made the decision to look elsewhere. It's not impossible to find the deals if your determined. Good luck. Melissa

Hello Micheal, I have a friend that used them to rent out her beach house in Newport Beach. She was quite happy with the results. I have used the service for myself when I visited New York City, and I was happy. I have friends that used their service when they went to Europe, and they were happy with the results as well. It is worth checking into. Good luck. Melissa

Hello Darnell,

If you find a great deal and present the lenders with an analyses spreadsheet that shows your deal, as well as at least one exit strategy to secure your deal, then it should not be hard to find lenders.  Once you get your first deal lended, then it will be a piece of cake moving forward! I have a list of friends that want to get in on my deals.  They came to me, I did not ask them for money.  When they see you successfully making profits in real estate, is when they will come to you.  

Present the bank or lender with a spreadsheet analyses that looks professional, and they will take you seriously.  It's all in the numbers as far as lenders are concerned.  It also helps to provide them with exit strategies incase the deal you worked out doesn't go as planned.

Hope that was helpful.

Melissa

Hello Dominick,

Are you planning to hold onto the property, and renting it out?  From your description of the property, am I understanding that it has two units you can rent?  If so, what can you get for rents in that area?  Once you have that number is when you can work out the numbers to see if it is a good deal.  If you are buying and holding then the nets to work into your analyses would be: (1) mortgage, (2) maintenance fees, (3) property taxes, (4) homeowners insurance, (5) water bill, (6) property manager if you do not intend to manage it yourself, and (7) future property maintenance, suchas roof & painting, and concrete.  

This does not include closing costs.  After you calculate your closing costs and expenses, if the property has a cash flow of at least $200, then you have yourself a good deal.  

If you want to buy and flip it then you calculate the FMV price x 70% and that should give you the maximum price that you should purchase the property for. I would still calculate the numbers, but that is a rule of thumb to tell you if it is worth your time to calculate the numbers. To get the FMV for the address of the property your thinking of purchasing, find a realtor in that area. They should be able to provide you with a list of comps. I would also want to know what properties similar to yours sold for, and how long they were on the market before they sold.

Hope that helps you.

Melissa

Hello Jesse,

Have you looked into contracting a property you find.  If you can attain a buyers list of investors with a list of criterier that they want in a property, then you don't need to use your own money.  In this case you would contract it out to the buyer who has the money, or will get their own loan for a fee.  I have a friend who does this in Orange County, and he does quite well.  

I bought several properties without using any of my own money.  The best properties to buy in my case sceneario is if the owner is moving out of state, getting a divorce, or owns the property in full.  

Good luck.

Melissa