All Forum Posts by: Mike Dorneman

@Ahmad Darensbourg if the taxes are current, whoever is listed on the deed is the legal owner. Thus, the legal owner can sell the property.

@Thomas Jaeger I Perfer to open a commercial LOC on my rentals. This way, the bank lends on the rental income “business value”, Vs simply the appraised value of the home.

@Kenneth Gordon Sure, as long as you already have the money. Meaning, you are funded and can complete the deal immediately following your accepted bid. This issue here is that you would need to find a lender willing to finance a “potential deal”. That’s going to be the challenging part, unless you have a great track record and solid relationship with the lender.

@Sherman Cummings What does the lease say about SLA (service level Agreements)? Meaning, how much time is allowed for a repair to take place?

@Chris K. Thanks Chris, appreciate the info!

@Miguel Aguilera For the purpose of an income statement, (show net worth) you would use the appraised value based off the comps that Sold in your neighborhood within the past 8 weeks or so.

@Justin Oliver Congrats on getting that second deal!! I was in the exact same boat about 1.5 years ago Justin. The properties that I buy are Very inexpensive, so this strategy wouldn’t be as effective on properties sat over 100k... Basically, my first 2 deals were home runs, meaning after the renovations we more than doubled our inItIal Imveatment. Purcjase prIce on house 1 was 24k, +6k In remIbatIons whIch I funded wIth cash. we refIed that one for 70k whIch resulted In mt InItIal onbeatment comong back plus an extra 30k or so. So then I had aboIt 70k cash for my next deal. BasIcally dId the ecact same thIng to result In about 100k cash avaIlbale for 3rd deal. The key for me was In fIndIng a commercIal lender that refI‘s on ARV (after renovation Value) and doesnt requIre seasonIng of the property.

@Eddie Wright It’s going to be different in all markets, even neighborhood to neighborhood. What’s the investor environment look like in that neighborhood? What are renovated comps selling for now? What are the rental rates in the neighborhood? That all being said... distressed properties are my main focus. I aim for properties that need a major upgrade, D level property In a B neIghborhood. The best deals are the ones everyone else is afraid of. Good luck

@Christopher Smith I use Erie Insurance for all coverages.

@Cathie Kovacs Not something I considered Cathie, thank you!