All Forum Posts by: Shane H.

@Aaron Pinto  Welcome Aaron --- I'm interested in the same market as you, maybe not the same areas...not sure - but as @Jake Hartman stated, in that price range stuff is moving pretty quickly.

I think the market is good for anything under $300 -- above that not so much.  I know a builder who specializes in $300 +++++++ homes and he's having a hard go of it in his development.

@Brian Clifton

Welcome Brian.  Theres a few active ICT investors here.  Do you still reside in the area?

I think I now regret using the word Cap Rate...ha -- it was to give some relevance to what he was asking relative to the NOI he is presently receiving per what I was provided. I think too many folks get caught up in the cap rate business. It's not the end all be all - plenty of other things to consider and only one aspect to look at.

Interesting thread though.

Welcome @Jeremy Morris

@Brent Coombs  @Account Closed

The 4.5 cap was what I formulated based the actual #'s I was provided so far.  However his properties I believe are only 30-40% occupied and I'd obviously want a lower sales price so that there is more upside.

Maybe he's trying to suck me into a vortex - I dont know at this point.  So far from what I've seen if you bought in bulk you could then dissemble and sell off the piece you do not want as location wise it's still somewhat desirable especially for potential medical use or other office/retail functions that would go well near a hospital and on a main arterial road.

@Brock Thomas

I purchased redemption rights on a rehab/rental in 2014, however the deal fell in my lap and we were connected to the seller of the redemption rights already.

 It can be done, however the difficult part is most people who go into foreclosure have very little if any equity so chasing redemption rights is like chasing your tail.

I had an attorney draw up paperwork for me to get this done...the same form I'm sure could be used multiple times -- it was  matter of getting the contract signed, then recording it at the register of deeds office -- the right of redemption was no good until it was "officially" recorded with the Register of deeds.  Thats the angle the banks attorneys took.  I am almost thinking there is also a disclosure you need to give the person per KS Statute when buying the rights of redemption as well - you should be able to find the wording when you read the statute.

I think the hardest part is finding the homes with equity in foreclosure, then establishing a relationship with the property owner to get them to sign the rights over to you.   If you could systematize that please let me know or if you have ideas to do so as I'd be interested as well.  I just havent put this issue as an area of focus for myself yet.

@Nick L.

It could be possible.  I'm sure he would want everything as a package deal.  I'll be able to formulate a better plan once I see the rest and get to know him a bit better.  He's the type you need to develop a relationship with before you can get anywhere.  Not much different than some farmers/ranchers I encounter when I ask for hunting permission in the fall.  They just need to know you're not a bad guy and they'll open the book for you at some point so to speak once they get to know you.  Once you have the relationship the deal or what you are offered often gets much better. Hope that makes sense.

@Manolo D.

We're budgeting for around 63-65 and optimistic we can get in the $50 range.  

Just under half the finished sq footage will be in the basements so that should help lower the cost.

@Christopher Brainard

Oh believe me -- I've mentioned to him multiple times it either works for both of us or it doesnt work at all.  He knows everything is negotiable and I've kept in touch with him as I have nothing to lose and he seems like a decent guy anyways but with quite a few quirks and who doesnt have those?  I've had other things I've been working on in the mean time but figured it was worth keeping on the back burner until something else superseded it.

Have a contract on 2 lots on a cul-de-sac - since I had posted about this most of the lots are gone - another contact I have met through BP may buy some of the remaining ones and we were going to see if we could combine forces in some way.

Met with the draftsman today to finalize the designs - he has an off the shelf one he's used over the years for some other large duplex builders over the years he'll modify for us.  Should have the plans by the end of next week to so we can finalize our costs and then move on to the lending piece next.  Only will have around $750-1200 wrapped up there.

Developer agreed to carry the note for us on the lots -- we paid half up front - he carries the other half for 6 mos at 4% interest per annum.  Lots cost a tad more than I quoted but we are in a slightly better location IMO so it was worth a couple extra thousand.  Closing on those next week I believe.

I'm nervous but am jumping in - Hoping when we're done the economy is still decent - little worried about that end but hoping nervous and cautious is good.