All Forum Posts by: Kumar Paj

Thanks for the inputs everyone!

Buyer is hesitant not because of the cost of turning on the utilities but because of the liability and legality issues. He is nervous about who will be responsible if something goes wrong.   Any ideas???

thanks

I am in process of buying a foreclosure and got stuck at the inspection and appraisal stage. Seller and Listing Agent is denying to turn on any utilities (especially Gas) and asking to transfer the Gas on buyer's name before they dewinterize  the property. Buyer is reluctant to do so before closing. Appraisal cannot be completed until all utilities are on......

Any one has gone through such scenario?  Will appreciate any inputs. 

Thanks,

Hi Pratik,

Per the numbers in your example, the deal is not look good to me.  If we go with the numbers you mentioned above, your total monthly payment would be around $1770 (Purchase price $220K, 25% down, 30yr fixed@5% and $1K insurance p.a.). If you take into account vacancy rate and maintenance, the investment makes sense ONLY IF expected rent is around $2200. As a rule of thumb your monthly rent must be greater than your monthly payment (make sure to include vacancy rate and maintenance).

Different story, if your objective is just to build up equity and if you are not worried about the cash flow. In any case, I personally won't go for this since I can see NEGATIVE Cash flow from day one. When it gets to investment, never get emotional or fall in love with a property. It is a good property if numbers are good.  

For better analysis, use Investment Analyzer (go to Analyze > Investment Calculator > Rental Properties). 

hope this helps.

let me know if you have further question.

thanks, 

The fair increase in rent for each unit would be around $10-$15 pm. (may be $15 for larger unit and $10 for smaller unit). Per my experience, any 'shared-appliances' are handled bit roughly and would be a good idea to have extended warranty or Home Warranty, if you haven't got already. I believe, Nicor covers ALL appliances+HVAC for around $45 p.m. Not bad for a rental unit.....

Hi Bill,

I am a new BP member and working on my very first pre-foreclosure deal. I came across your above mentioned post and wondering if you can help me with those letter template. Would appreciate your help on this.

Please let me know if you want me to PM you or email you.

thanks, 

I had been to Sheriff sale auctions couple of times but seems very difficult to find something. Especially,  because they put the opening bid just one day before the auction day.

I've a question for Woytec though.   I was wondering about how to do the title check and confirm if it is free of any liens/clear title?? Would you be able to provide some guidance with regard to do title search and the next steps after you win the bid??? 

Would appreciate your inputs.

thanks,

Thanks Crystal and Lumi!

I might not be able to make it on Dec. 2nd but just wondering about the next one. How often do they meet?  do they meet at the same place every time? 

thanks, 

Hello,

With foreclosure rate going down and new investors coming in the market, it is getting difficult to find attractive investment properties on MLS. Having realized that I am trying to learn and understand opportunities to invest in pre-foreclosures. After some research, I found couple of properties which are in pre-foreclosure stage. These properties are in the same building where I already own couple of units so I know the area, valuations and I feel more comfortable, if I need to talk to the owner. However, since I have never done pre-foreclosures before, I have no idea about the next steps. Here are some specific info about the property and questions I struggle with.

Specific Info

As per Zillow, unpaid balance is $88K.

I am assuming he wouldn't have paid HOA for few months or may be longer

Fair market value of the property (ARV) is around $65K

This property is scheduled to be sold at Sheriff Sale/Foreclosure auction in Jan. 2015

Questions

• -How exactly ‘pre-foreclosure’ works? What are my next steps?
• -If I knock on the door, what should be my talking points? Is there anything I need to do before I go there?

Will appreciate any advice and help to make this deal. Would be more than happy to team-up with a local and experienced agent/investor, if interested.

Thanks,

Thanks everyone for warm welcome.

Being a new member, I spent some time reading some posts and listened few of the podcast. After spending lots of time on various Real Estate investments websites/blogs, seems like I finally found a gem. BP  seems to be a place where I should have been a while age.....but it's never too late. 

Anyone knows if there is any local BP groups in Chicago area?? Would love to get involved in it.

thanks,