All Forum Posts by: Jeremy Holcomb

When I calculate cash flow it is net proceeds after every expense has been taken out. Payment, Taxes, Insurance, Repairs, Management, and etc. Also, even if I personally manage the property I still account for a 10% management fee. 

Probably the most inexpensive property I have ever purchased. I came across this listing online. A 1/2 acre of land with well, septic, & power with an old mobile home and permitted 700 sq ft on slab addition. The property alone empty was worth 11K. This we are going to use as a long term rental after a whole lot of TLC is given. We paid $4K

@Eric Yevin, I was just perusing online ads and it popped up. I inquired about it and the guy who put it up lived out of state. I will mention that it is an old mobile home with a 700 square foot addition on a 1/2 acre lot. However, the lot with the improvements (well, septic, & power) is worth 11K. It wasn’t a hard decision just looking up current assessed value. He just wanted to dump it and listed it for quick sale. 

I personally look for $300 and up per door. Unless the property is under $50K. I bought a property today for 4K and will spend $8-15K for rehab. I will net $350 a month on it for two years and then will net $500 a month after loan is paid off.

@Nate Ginsberg, There are definitely sellers who will carry the mortgage. I bought one today and he carried a 100% mortgage. Just had to send first payment of $185. So good luck and just remember that just searching for the deals can sometimes place someone in your path that will either loan you the money or provide a seller carry note. 

Well just to let everyone know. I purchased the 1/2 acre lot with an old mobile home for $4k with the seller holding the note for 2 years for all the issues. We are going to transfer the property via a Quitclaim Deed to my LLC. I am going to wait the time out and use the property to place a newer mobile home or rebuild the existing one to rent. The current value of the land is 11K. It also has existing well, septic, and power in place. I appreciate all the responses and the valuable lessons in today's real estate investing education system.

@Wayne Brooks, The seller and I agreed for him to hold a purchase money mortgage for 2 years and to immediately transfer ownership via a quitclaim deed to my LLC. I will then have the waiting period complete after the loan is paid and file for a warranty deed. Also, he became a new connection as he is also a private money lender that I can use in the future. Thanks for the information. It has definitely been a learning experience. A positive one at that.

@Brian Van Pelt, Both owners are deceased with no will on record back in 2010. I am racking my brain for a way to keep this property without much risk to either me or the person holding the tax deed. I want the property! I just have to figure out how to do it and wait out another year to close.

Well today has been an experience learning about purchasing a property someone bought as a tax deed. I came across a property that was listed for a crazy price. I inquired about this property and quickly got it under contract in less than an hour this morning. Took the contract over to my local title office and they look it over. The manager informs me that what I hold is a useless piece of paper. I look at them with a puzzled look and they tell me in Florida there is only three ways to close. 1) Have the previous owners sign a quitclaim deed. Which is impossible as I find out they are both deceased. or 2) Have a quiet title search done. Which is also impossible now as they are both deceased and we would have to do our quest through a probate court. and last but not least is 3) wait another year for the tax deed to hit 36 months after being issued. What would you guys do in this situation? Would you pass or try to come to some sort of agreement now on the property? Maybe a lease to purchase?

Every hml will have different requirements.  It can also be state specific. Do your research on each lender. Most lenders want 10-20% down and possibly points and usually do short term loans 6 months to 18 months. Also, some will do a 60 month term.