All Forum Posts by: Josh Caldwell

Yes I have, what do you want to know about it?  There are several legal ways to do this. My favorite is to buy on a lease with an option that parallels the mortgage.  My attorney holds the deed in escrow and I don't get it until I pay the entire debt off, so no due on sale clause is triggered.

REIA Christmas Party is almost here


This coming Tuesday night is my favorite REIA meeting of the year. This meeting is not like the others for a few reasons.

Festive atmosphere

Food - All bakers are encouraged to bring cookies, brownies, and any other wonderful culinary creation that they wish to contribute to the celebration

Fun - we are going to learn but the emphasis will be on having fun.

Valuable prizes - We will be giving away a few thousand dollars worth of real estate education, but you have to be present to win.


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This Tuesday night, we will be discussing war stories of the real estate kind. I am inviting anyone who wishes to share a war story about a great success or a painful failure to share it with the group. As always, REIA is the real world, not some crazy internet fantasy about how real estate works. So come and be prepared to learn from your fellow investors.

PS - contact Josh if you wish to share a story with the group - [email protected]

Cap rate is a metric of price in relationship to net operating income (also called net profit) I don't buy in the Mechanicsburg area but 6% wouldn't get me to open an email. Ok deals are in the 10% range, home runs will go north of 20%. What is the current NOI? You need that number to even evaluate the property. I don't care what comps are, comps just tell me what other people pay for similar properties. Sometimes other people made bad decisions. A comp does tell me if I can get bank financing or not, so it isn't totally useless, but comps have much less to do with my offer than a metric which currently reflects my rate of return. I would also want to see proforma ROI numbers, but that will not be used for my offer. Even if I believe that I can improve the current NOI significantly, I am still making my offer based on current value. If the deal doesn't work right now, at this exact moment then I would walk away. There are too many sexy deals out there to try and force a bad deal to turn pretty.

If you are in Western PA, I have a few lawyers who can close a subject too deal. just PM me

Hi John

The bigger issue is who wants to buy that lot from you?   In rural areas there are far fewer buyers.  There are also fewer buyers who want to build on a lot.  It that lot was in Mars, you would have something. You might have real trouble getting anyone to buy the lot you are bidding on.  You might be better off losing this big.  IF you get stuck with the lot, I might be able to help, but then again, I might not be able to. 

Now if you happen to win, owner financing is your best hope to sell this thing.  You have already identified the potential problem with financing.  You are likely to pay more for the foreclosure than you would get if they cash you out. So the solution is to have your closing attorney hold the deed in escrow until they pay you off completely.  There are a number of ways to sell this thing with an owner financing device in PA, and not transfer title until you are paid 100%.  Ask your closing attorney which way they prefer to process this transaction, since they will be the one in court if it goes wrong.  I would use a lease option device that would give the buyer the rights of a tenant until I was paid in full.  That way you deal with a simple eviction rather than a foreclosure.  The difference is huge.  Feel free to reach out to me if you accidentally win this one. 

To your success

josh

@Max Feinberg  Tuesday the 20th, We start networking at 6pm, main meeting starts at 7pm   

ross Twp -  3579 Masonic Way, Pittsburgh Pa 15237 is the address. We are in the main ballroom, you cant miss us. It should be a good time. 

to your success

Josh 

Learn the ins and out, the do's and don'ts of wholesaling from a local subject matter expert, someone who actually does this for a living. No games, no theory, just the real deal and how anyone can make money wholesaling in the Pittsburgh market, with Josh Caldwell and a room full of others. As always, first time guests get in for free, all other non REIA members are a whopping $10 at the door.

WOW, that is freakin special, they wont be in business very long with that attitude.

@Sean Grabow - Two thoughts here. My first is why not just address your marketing to the entity name. If you send something to my entity, it comes to me.  Deals between investors don't need to be addressed to the exact person.  Secondly if you really want the name of the owner, it will be time consuming, but it doesn't have to be your time. I use virtual assistants from the Philippians or get a gig on Elance to do all that grunt work.  

@Sean Grabow - The LLC should be easy. Every state has a dept of corporations where their info should be filed. The Trust is probably going to be a problem. They are designed to make it nearly impossible to figure out who owns the trust.