All Forum Posts by: Brendan D.

Would you recommend buying metal stakes or getting the cheaper wood stakes (from a Home Depot or Lowes)? Which holds up better outside? I know the wood is less expensive.

i prefer wood stakes. the H wires are flimsy and bend in the wind.
I use wood stakes and a mallet to pound them into the ground.

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Originally posted by "stixx1001":

Hello everyone!

Im currently trying to figure out how a rehab loan works in todays market.
Im trying to short sale a property with an ARV of 160,000
Ive got rehab costs at 55,000
I would Payoff the current lender at 60,000
Im guessing i need about 15,000 in a Down payment (figuring 10%)
Im accounting for 5000-7000 in holding costs (4-6 months)
And i would walk away with 20,000

So im guessing i need a rehab loan for 140,000?

How exactly does this work??

thanks in advance

IMO in this situation a hard money loan would work best.
your ARV is 160k. in today's market most hard money lenders will do 65% of that amount which would include money to purchase the property and they would put the repair money in escrow.

160k * .65 = 104k.
that leaves 44k for the repairs. Assuming your repair estimates are spot on, you would need at least 11k to get this done, more if you have to pay closing costs.

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There are a few places that provide investor websites. If you're comfortable with computers you could do it yourself using templates. However I'll list a few resources. These all vary in cost.

www.investormatic.com
http://www.supersmartwebprofits.com

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how many units are there in this building? where did you get the 20k repair figure? if the neighborhood's rough, i'd add a higher number to get better quality materials, as well as the unforeseen repairs............
how accurate are those rents?
call other apts and see what similar units are renting for?

i've rented section 8 before with no problem, however it wasn't in a very rough neighborhood. i'm not sure u want to be in the war zone as that brings with it a different set of issues. also, would you make the whole building section 8???

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Originally posted by "Ashamann01":

So I have found a property, in a decent middle class neighborhood, the details are as follows:

[list]Property Price: $140,000 (asking price, can negotiate down but for analysis purposes keeping it here)

# of Units: 4

Total Yearly Rent: $25,800

Expenses (assuming 50% rule): $12,900

Down Payment: $14,000

PI: $7,664

Property Management: $1,290 (its about 6 hours away so no way for me to effectively manage it myself)

Cash Flow: positive $2,656 (yearly)[/list:u]

Seems to be a good deal to me... whats your guy's opinion, am I forgetting anything?

have you verified these numbers? if you can, get the rent rolls and ALL LEASES for the past 2-3 years. i'd take the sellers numbers with a grain of salt....... also are the units separately metered? who pays utilities, tenants or the landlord? waht are other similar properties renting for? what's your estimated mortgage payment?

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Originally posted by "jrundy":

I am in Montgomery County MD and am interested in helping people out that are facing foreclosure in MD. I have come to learn that MD has some very strict rules for "Foreclosure Consultants" and "Foreclosure Purchasers". According to the state law, if you obtain a property through a reconveyance and sell the property within 18 months, you are required to pay the original homeowner 82% of your net proceeds!

With that in mind, I am contemplating finding someone that is facing foreclosure and is interested in staying their home and doing a purchase "subject to" and doing a lease option to buy back to them for 18 months.

Does anyone else focus on pre-foreclosures in MD? What have you found to be the best method to obtain a good profit in this area of investing?

Thanks for any suggestions!

Jonathan

SB 761 was created to prevent just exactly what you want to do.
better to focus on loss mitigation in my opinion.
they do NOT want you to be able to buy someone's house and lease it back to them. that was their whole intent when writing that law.
with that being said, i'd recommend taking some training from Bruce Norton. He's incredibly knowledgeable on this subject and even testified in Annapolis during the drafting of the MD foreclosure law. plus his background as a loan officer helps as well.

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Originally posted by "boazbama":

Just curious if anyone uses his system.

What is your opinion on him?

He claims to go to any city and do deals with only a laptop and cell phone.

Just wondering how it worked.

Thanks

one of my colleagues is a member of his absentee owners system and his material's good from what i hear.

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Originally posted by "Gne":

I am looking to locate a list of investors in my area since there are so many good deals (for CA) in my general area.

Someone suggested bandit signs but, our cities are all over getting those down and fining you for putting them up. I tried craigslist, and was not successful.

I have attended some Meetup re investor meetings that seem to be conduits for real estate agents to attract people.

Are REI clubs that advertise the national stuff any better for locating investors?

How do I tell a seasoned investor from a newby at the REI?

Any suggestions would help. I am trying to build a bird dog or wholesale business fast time.

in my experience, the best way to build a buyer's list is to actually have good deals. then present them at your local investor's meeting, or discussion board.

how can you tell a newbie from a pro? easy......... the newbie will ask 10 million questions and want info, pics, repair estimates, your blood type, SSN etc. (just kidding)
a professional investor only wants the numbers. and they make decisions QUICKLY. they'll give you a yes or no on a property quick. a newbie will mull it over and waste time.

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Originally posted by "BostonHome":

Just recently I have taken the property search(for a flip) to a more serious level. I've been working with a realtor and have MLS access and check it multiple times daily.

Just recenlty a few deals have come up that strike my fancy (80-100k under assesed value). Being a newbie I work slowly, i'll ask that day about a property and maybe set up a tour for the weekend to scoope it out before going any further.

These deals that caught my eye were already posted as "off market" the following day they were posted. The realtor followed up and both had multiple all cash offers, slightly above ask.

How can a little guy like me compete? I am just starting out (24 yrs old) and have never owned, have no debt but I can only afford so much house on my salary. Looking in the 150-200k range and approx 20k renovation needs.

Clearly the deals I spotted where good, other investors jumped in fast and snagged them with all cash offers. Do I basically have to settle for deals that other investors snubbed?

I'm just feelin like I have no chance at getting a real deal under contract. Thanks for the advice

if at all possible find out who the cash buyers are in your town and wholesale properties to them. also, you want to have more than 1 way of finding properties to avoid this type of situation.
check back in the mls, too, just because a property goes under contract it doesn't mean it's actually going to close.

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Originally posted by "Wheatie":

If you speak to your mortgage broker, accountant, and lawyer, you may well find its impossible to do what all of them suggest.

Pick up a copy of "Wealth Protection Secrets of a Millionaire Real Estate Investor" by William Bronchick. It addresses various approaches and the pros and cons of each.

According to both my mortgage broker and my banker, get the mortgages in your name, then quit claim them into an LLC. The lender won't call the note, and if they do, quit claim them back to you.

You really don't want to have them in your name because a lawsuit can go after all your personal assets.

You do need to observe formalities. Separate bank accounts, no commingling of funds. Have minutes for important decisions and an operating agreement.

Not a lawyer, don't play one on the internet. Consult your own lawyer and accountant.

i agree.
in regards to teh due on sale clause i wouldn't worry too much about that. a bank would look incredibly foolish calling in a due on sale clause on a performing note. (not that that would stop them, Banks sometimes do some idiotic things.)

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All Forum Posts by: Brendan D.

Brendan D. has started 2 posts and replied 92 times.

Post: How to Buy "I Buy Houses" Signs...

Post: Rehab Loan/ How does this work?

Post: LOOKING FOR A GOOD WEBSITE

Post: Section 8 deal - yay or nay?

Post: Potential Deal, looking for advice

Post: Pre-foreclosures in MD

Post: Cris Chico

Post: Best Way to Locate Investors

Post: All cash buyers....how do you compete?

Post: establishing a business entity