All Forum Posts by: Denise Webster

I am familiar with financing concepts when buying real estate as an american in America. However, buying properties outside the US is completely foreign (ha-ha) to me. An associate is near retirement age, and has just received an opportunity to fulfill her dream to purchase a well-established bed-and-breakfast in Cozumel, encompassing both the property and the enterprise. She has down-payment funds available by personal savings plus $200K equity from her Atlanta, Georgia home. The business is said to currently yield an annual profit of $80K.

If this opportunity were to come to you, what method(s) would you use to structure the financing of this "international" purchase? What type(s) of loan(s)? 

Speaking with a few realtors and private lenders, I am hearing that ARV appraisals are returning with conservative (low) values. Couple that with a house I currently have that has limited neighborhood comps, I am now analyzing deals with conservative ARV. Regrettably, this means that many of my offers are (in the opinion of sellers) too low.

Am I being paranoid? What resources could I find that could give insight into what banks are doing that are driving appraisers to be so conservative? What are your thoughts on this?

Speaking with a few realtors and private lenders, I am hearing that ARV appraisals are returning with conservative (low) values. Couple that with a house I currently have that has limited neighborhood comps, I am now analyzing deals with conservative ARV. Regrettably, this means that many of my offers are (in the opinion of sellers) too low.

Am I being paranoid? What resources could I find that could give insight into what banks are doing that are driving appraisers to be so conservative? What are your thoughts on this? 

4178 Orchard Knoll, Peachtree Corners, Georgia 30092

I am feeling the pinch on this deal, as all feedback is regarding the immediate location of the property. Turn into the community, and the house is the first on the right. My logic at purchase, was that the house is facing into the neighborhood, and the backyard is on a hill so that the main thoroughfare is not visible. All feedback is that the rehab was great, but the location is a breaker.

I've adjusted pricing, not out of impatience, but because this deal has been a "breaker". I want this "thing" gone. This was purchased using a hard-money rehab loan that does not make holding the property a logical option, otherwise, I would lease-option it just to start some sort of recovery.

Please share your thoughts. Did you ever get stuck with something like this? What would you do? Marketing ideas anyone? Do you know of any corporate relocators seeking properties in Atlanta, Georgia?

After years of working for investors in managing their flips, I am now funded to flip for direct profit. I have Associate Degrees from Gwinnett Technical College in Residential Construction Management and Air Conditioning Technology. I have avidly pursued residential investing with primary interest in flipping. 

Although I am already pre-vetted with a hard-money lender, the rate(s) are brutal. So, I strive to prove productive return and profitability with my initial flips, and establish relationships with private-lenders. 

With great respect to those with far more experience, I want to encourage you to take action. Caution is wise, so build a strong team around you to get you beyond the "newbie" stage. In this instance, for this property, whatever advice you follow, you are a real estate investor.

Take action, make an offer, provide a win-win for everyone (including yourself).

First, start with your exit. Evaluate the deal based on numbers. Your "team" is the key to measuring the value of entering this deal. As a newbie, your credibility is as strong as those that are working with you on the deal. (a) What would be the ARV? Get the comps for the property. (b) How much would be needed for rehab? How long will it take to rehab? This will be used to determine holding costs. Have a contractor give a preliminary review and/or estimate on the repairs needed. Ideally during your due diligence period you would have three contractors give feedback. (c) Of course, ALWAYS focus on the ROI (return-on-investment) to determine if the effort and time are worth the work.

By no means is this a complete guide, however I hope it gives you focal points to work with in making your choices. One last note on financing.... The (private) money is out there to fund rehabs, you just have to take the initiative to find it. Wishing You Great Success.