All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Originally posted by @Gabriella McClellan:

Then it's the wrong house.

It doesn't matter what someone will sell for. What matters is how much the investor will make when it's all done and said.

You have to estimate how much money it will take a fix & flip investor to fix it up. Usually it's about $10k to $80k depending on the deal. You have to add in carrying costs - usually $2000 a month for 6 months. You have to add in the costs the investor incurs to sell, usually about 8%. and so on and on. You have to add in your fee. If there isn't any profit left after taking that risk and doing all of the work, why would an investor want it?

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Originally posted by @Gabriella McClellan:

I have fix and flip properties under contract right now that I am looking to assign to a cash investor. I have properties in Baltimore,MD, Springfield,IL, Ogallala,NE, Bluefield,VA, and Fort Valley,GA. Please note that all the properties I have under contract are at LEAST 5k below the market value and I have housing comps, repair estimates, and ARVS for each property. These are great deals, but I do not have the connections yet and I do not want to just purchase a buyers list to cold call off of, I want real connections with investors! Any advice on how to obtain cash buyers?

5k below market won't get any cash buyer's attention. Find some real deals and let's talk. They need to be at least 30% below market. That is, on a $200,000 market value, the investor will go as high as $140,000 to buy it for cash. That's about 60k below market.

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Originally posted by @Michael Paccione:

Hello, I am a San Francisco local who has a $250,000 derivatives portfolio currently.

Looking to disperse a significant portion of those funds into real estate to diversify and eventually get a solid cash flow real estate business. I have done many things for work/business in the past but now am a Software Engineer and can work from anywhere.

I am considering purchasing quadraplexes in Phoenix but am concerned about the future climate change. Phoenix will have more months that are extremely hot as well as the real problem of having to acquire enough water for the city.

The other consideration potential would be Colorado Springs. From my research Vermont, Maine, and Colorado are the three states that will suffer the least climate induced damage in the coming decades.

Any thoughts on all of this? Phoenix is quite close so I would prefer that but am skeptical... Any tips from the AZ people?

Your comment: "Phoenix but am concerned about the future climate change. Phoenix will have more months that are extremely hot as well as the real problem of having to acquire enough water for the city."

It was 110 degrees today in Phoenix. There is a drought. Arizona's share of water from the Colorado river is in dispute. Have a happy day.

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Originally posted by @Kumari Patricia younce:

Hello,

I value this forum. When my son and I were starting out looking for a private lender or angel investor to love our idea to build a Vermont retreat as much as we did, we heard from a Peter Spencer at EQ Loan Portfolio Trust LLC and he seemed legit but...we were not as aware as we are now of red flags and so we did send the origination fee to EQ (out of Nevada and Washington State). We even consulted a Nevada lawyer to look at the contract! The story gets worse but I am warning everyone here to avoid that company.

Also--we filed a complaint with the FTC and with the Nevada Attorney General's Office. Has anyone EVER recovered their money from scammers? We were told by the AG's Office it could take months. I sent all communication, addresses, phone numbers, etc to the AG, including that of the lawyer who was independent not referred to us from the lender, though she stopped responding to us, too!

Anyone ever have success trying to get money returned?

kumari

Kumari of the Woods LLC

When the AG's office says months, they mean it will take that long to hear back if they think you have a problem. If you have a problem, you will wait years to get any resolution through the AG's office and probably receive little if any money.

My guess is you will have to hire a local attorney and sue them directly. You should be able to get an opinion from a local attorney for a few hundred dollars. They will have to review your paperwork and your claim. Lawsuits can run about $25,000 - $50,000 depending on the facts of the case and legal fees are rarely recoverable. You have to weigh that against the amount you lost to decide your course of action. But you might want to explain your experience at RippOffReport.com so that others are made aware.

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Originally posted by @Kim Amack:

If my father was buying a house and I took payments over and he dies, do I become sole owner?

Generally, no. But, that would be for a probate judge to determine. Simply making payments on a property doesn't make you the owner. There is a tedious and sometimes expensive process that come into play.

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Originally posted by @Alexandra V Moreno:

Hi everyone.

I am a gap funder. Have a second lien on this property. Our terms state that she was to pay me back by September 9th (including the 15th day grace period) and as of September 10th, she’d be in default.

Per all her texts and emails, she’s been saying she’d pay me back on time, or by a certain date but every time we get closer to that date, she changes the date or lies about how things are going. This most recent time she said she’d pay me by 09/28 (idk why that late she never provides good info or updates)

regardless as of September 10th she will be in default

I have a second lien, promissory note and joint venture agreement.

Has anyone persuaded legal recourse in something similar.

The property is in Utica NY

It matters more at this point what is in the Joint Venture Agreement and Promissory Note. Properly written agreements will tell you what your options are.

As a lender, you have the right and obligation to visit the site and determine progress. Talk to her or the contractor and find out what is actually going on.

Then, if you are not satisfied, I would have an attorney send her a letter of "specific performance." That will put her on notice that you have lost your patience. Since you don't mention the numbers, or what the JV Agreement says, we're left to guess what the best course of action is.

Have a real estate attorney review your agreements, make recommendations to you & then repost your question.

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Originally posted by @Tony Freeman:

As a new investor, especially in the world of multi-units, I'm sure you have come across a ton of buildings that are being sold "as-is" and are required to write that into the offer that you send over. Although it seems pretty straight forward that when you agree to an as-is sale, you are taking it in whatever condition you get it in and won't get any credits or repairs, but its not always that black and white. In fact, a lot of the as-is deals that I've been apart of on the buy side, we were able to get some form of credit still.

Now, this doesn't mean that after your inspection, you send out a long laundry list of things to the sell side and expect them to accommodate everything because that 10 times out of 10 just won't happen. In fact, you have to be fully prepared to potentially not walk away with any repair or credit no matter how extensive it is but every seller is different. However, the things you can usually ask credits for while under an as-is sale, are typically things that can be potentially hazardous that you wouldn't have seen or known about until you got through the inspection.

The most common credits I see people ask for are when it is as-is has to do with the roof, the foundation, or a deck(if the property has one.) Even when an issue with those things come up during the inspection, you still have to be mindful that you are under an as-is sale. Any kind of credit you can receive would be good step but I never recommend going in and asking for the full price of the repair or replacement or at least if you do, don't keep your hopes too high that they will give the full credit.

Lastly, please do not be bullied into feeling like because you signed the as-is that you have no leg to stand on when asking for a credit or repair. A lot of sellers and listing agents will try to make it feel that way but as long as you have a great attorney and agent that can explain things to the opposing side and they can paint the picture to them, you have a higher chance of walking away with something.

I'd never do business with someone who doesn't honor a contract. What is the value of a contract otherwise? There are too many other honest people that do honor a contract to work with.

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Originally posted by @Spencer Herrick:

I've been analyzing several properties to the point of exhaustion over the past few weeks. I'm trying to avoid the analysis paralysis, but want to make sure my first property I purchase is lucrative. That being said, is it okay if your first purchase isn't a "Great" deal? The properties that I've been hesitant to by show between 10 and 13% COC return, but I fear that I need more of a cushion for anything I'm underanalyzing. I appreciate any pointers and thanks in advance!

Spencer

Actually, there is a lot that does into making a decision on a property. You only state that you want it to be "lucrative" whatever that may mean to you.

Most investors make the mistake of thinking that appreciation will bail them out of a poor investment. I don't include appreciation in my calculations. It isn't "profit" until you sell and you can't eat "appreciation". Once you do sell it can be hit with 10% cost of sales and a rather hefty IRS tax bill.

I look for $500 a month return on a $250,000 to $300,000 house after all costs, taxes and Capex. That's a little bit simplistic since what I do is sell on lease option, get a chunk of money for the Option from the Optionee and carry the financing. It's "lucrative" as you say but it probably isn't something that crossed your mind. The problem I see is that most investors put down 20%, set aside no money for a new HVAC or Water Heater or vacancy or whatever and think they are making money at $100 a month income. You could stand on a corner with a sign that says "Anything Helps" and get $100 a day tax free. (I asked the guy how much he makes.) Don't mistake a little bit of cash coming in as a great deal.

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Originally posted by @Joe S.:

So after Hurricane Katrina happened a number years back there was a spike in demand and prices along the coast for a houses that were move in ready condition. What I don’t remember is how fast misplaced place people seek permanent homes. Anybody have any insight.

About 1/3 of the people in New Orleans migrated to Houston at the time. I remember watching HGTV and the renovations of mold infested homes in New Orleans. The mold was from the floor to about waist high. It was probably unlivable until mitgated. When we went through New Orleans last year, about 15 years after Katrina, New Orleans still had not fully recovered. Oh, it had it's French Quarter back and the Garden District was nice again but any other area still had a lot of vacant houses. A week and a half ago we were driving Gulf Shores AL and left the day Ida blew in. The houses there are on stilts for storm surge reasons, but the wind can do a lot of damage. It will be interesting to see how they managed.

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Originally posted by @Elijah VanDenBerg:

Trying to decide if now is the time to sell?

I currently own a single family house in Rochester, NH that is coming up on the end of its 12 month lease (end of November). I thought I was going to hold it for quite some time, but I am debating selling to take advantage of this market and the fact if I lease it out for 1 more year I will have to pay capital gains (I lived in it 2017-2019). I purchased at $290k and worth approx. $450-450k. It earns approx. $7000 in cash flow/yr. Built in 2006 and very low maintenance/Mgt requirements. If I sold I would use funds to (hopefully) purchase 6-10 unit in the $800k-1M price range. Big question is if appreciation will outweigh capital gains. Will appreciation continue in my market with lumber prices down and potential increased new construction? Thoughts?

Appreciate any insight!

Can you guarantee that prices will increase? That's a dangerous assumption.

I like your idea of taking tax free money and reinvesting. There are several reasons why. Some of us believe the market is over inflated. Does that means prices will collapse tomorrow? No, I think it is several months off but time will tell. Even if the market increases, your leverage on the new property will be worth the effort and you can position yourself with a property more to your liking.

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All Forum Posts by: Account Closed

Account Closed has started 141 posts and replied 4068 times.

Post: Anyone know where to find cash buyers?

Post: Anyone know where to find cash buyers?

Post: Investing in Pheonix or Colorado Springs (Climate Future?)

Post: Stay AWAY from EQ Loan Portfolio Trust LLC

Post: If making payments on a house and original buyer dies is house mi

Post: any gap funders here deal with an investor not paying them back

Post: As-is Sales and what they actually mean

Post: Analyzing properties to make my first purchase

Post: After hurricane house buyers

Post: Is now the time to sell?