All Forum Posts by: Account Closed

get references from the builder, ask for his last five jobs, talk to those people.

Builders can be great sometimes, and bad at other times, it is almost what they can get away with.

Don't pay until job is completed, do not pay up front, if the builder can't afford to buy material to start the job, you need to find a more secure builder.

You are suggesting a "blanket loan", I have done a few of these.

• If you are going to do this, you need to negotiate releases otherwise, when you sell one of those properties, the bank will take all of the potential proceeds.
• Negotiate terms that state when your loan balance is reduced to a certain amount, the lender release some of your collateral.
• Failure to do this will lock up your properties until the loan is paid off!

If this is a forclosure and you are the high bidder, you should get the property free and clear of liens with the back taxes paid.

You need to read the terms of the auction sale, talk to the trustee and the auctioneer. 

Charles......Auction Brokers

correction above. NOI

You're welcome. Have fun at public auctions, but be careful, you could become wealthy.

Just my opinion and experience with lenders.

• There are no Friendly Banks, no friendly lenders -
• There are no real decision makers - they are not human -
• They make decision by committees
• Their advertising tell a different story, "we are friendly, we help you, you are welcome at our bank......bla, bla, bla!"
• Do you ever see their names in foreclosure notices - no, only the name of the trustee. They are hiding the fact that they sometimes make bad loads. 
• Miss a payment and see how friendly they are!
• They are only interested in the bottom line, getting security for their loan and looking good on paper and charge you points and interest and other junk fees.
• Banks and lenders are ALL ABOUT THEMSELVES!
• You want a good loan, get owner financing; no credit checks, no points, low interest rates and good terms.
• Want money, talk to friends and relatives
• Put together a investing joint venture - you can raise thousands of dollars this way and at the same time have lots of friends who will appreciate the return you offer them.

The neighborhood you need to invest in is one where you can find and negotiate CASH FLOW or EQUITY!

• Once you perfect this system you will have enough money to invest in those popular neighborhoods.

Just wondering why you want to invest remotely?

Are there no deals in Colorado?

CAP RATES:

• Cap rate is important when considering the purchasing of income properties.
• I get to the NOI (net operating income) by using an APOD, Annual Property Operating Data sheet, make sure all number are estimated correctly and are true.
• The alternative to get to using a APOD to get to the NOI is a simple method I've used for years.....
• Take the gross rent, divide in haft, this number represents, to me, the NOI.
• So if a seller is reporting the gross income is $30,000, divide it in 1/2 = $15,000. If the asking price is $100,000 divide it by $15,000 which would give you a CAP Rate of 15%, if you demand a 20% NOI, work the numbers backwards; your offer would be $75,000 in order to get a 20% return.
• I have found that this estimate is close to the actual NOL when done using the long form.

Good luck

Very good comments here.

• The so called wholesale is under time and contract  pressure
• If he does not settle, he is out and the property has been exposed to many by this time
• I would like to see the wholesaler's contract; most of them don't know what they are doing. I always ask what he is in for and will contract protect me.
• I know an investor who will write to the owner of the property immediately after being informed of the deal by the wholesaler.
• A basic letter offers to 1. buy the property 2. a statement of credentials, 3. a statement  about unethical investors who have been known to be taking advantage of home sellers in the area.