All Forum Posts by: Shvonne C.

Hi @Account Closed welcome to the site.  As a newbie wholesaler I look forward to collaborating with you on BP.

@Jonathan C. great job!  I'm learning that following up on old/dead leads is key.  I have a list I keep of potentials that didn't work out.

@Auspria Wade I agree with everyone here, you do need to get as good of an ARV as you can get. How did the wholesaler you asked come up with $20k as an offer? Maybe they can share there rationale with you. I don't have access to MLS either but I've managed to go to as many REIA, BiggerPocket and other RE networking events as I can and have gotten to know some realtors. I would recommend you work on getting to know realtors so you can either ask them for comps or at least an analysis of the area.

To address your immediate need, here is what I used to do: Visit Zillow, Trulia, Eppraisal, City/Town GIS (to get appraised value) and RealQuest Express. I'd take the values and average them to get my ARV. I will caution you that sometimes you'll find an estimate WAY off at one of the sites (I had 4 sites say a house was around $120k and the 5th side $420k) - just remove that one from your averages.

For the sake of examples, let's use the numbers you have ($65k & $80k). That averages to $72,500. My equation to get my MAO (maximum allowed offer) is 65% of ARV-repairs-my fee=MAO. So even if you just put $5k into repairs and $5k for a fee, you would be at:

$47,125-$5,000-$5,000=$37,125 MAO (start lower for negotiation purposes)

However, I would strongly suggest you go look at the place.  If you don't know about estimating repairs (like me) bring someone with you that could help you at the very least point out things to take pictures of so you can get advice later.

I think your wholesaler friend's numbers were pretty good considering you don't know too much about the property.  Anyway - just my two cents as a fellow newbie wholesaler.

I've heard many times, if making the offer doesn't embarrass you, you are offering too much.

Multifamily on quiet dead end street with additional lot.

                                    Asking Price: $64,000

CASH INVESTORS TAKE NOTE! Two unit multifamily on quiet dead end in north end of Ansonia. This property can be money in the bank! Features 5-6 bedrooms and 2 baths. 1st unit has kitchen, living room, bathroom and two bedrooms on main floor. One room on finished lower level can be used as bonus or 3rd bedroom. 2nd unit has kitchen, living room, bathroom and one bedroom on main floor. Two bedrooms on upper floor. Rehab started on 2nd unit. Property will need $20-30k in work. Less than 1 mile from Ansonia train station and on CT Transit bus line. Close to convenience stores and restaurants. Separate utilities. Natural gas heat. New furnace. Some new windows, electrical and plumbing. Cash offers preferred, sold as is. Photos can be seen here: http://bit.ly/1pEQonA

Sale includes adjacent lot #34 in purchase. Lot is .08 acres. Land is heavy industrial zoned and can have a max of two family or small shop built on the land.

Unit 1: 2br* + 1ba / Rent: $900-975

Unit 2: 3br + 1ba / Rent: $950-1050

* Unit 1 could become 3br + 1ba

Asking Price: $64,000

Cap Rate: 9-11%

Year Built: 1880

Lot Size: .09 Acres

Square Ft: 2125

NOI: $10,589 - $12,414

Pro Forma

Income

Gross Income: $22,200-24,300

Vacancy: 13%

Expenses

Taxes: $3,200

Insurance: $800

Maintenance/Landscaping: $2,000

Turnover/Replacement: $1,500

Owner Utilities: $1,200

Comps

Address             |   Bed/Bath   |   Sale Price   |   Sq Ft

38 Johnson St    |   4br/2ba      |   $105,000    |  1430

235 Beaver St    |    4br/2ba     |   $134,000     |  2293

114 Myrtle Ave   |    6br/2ba    |    $189,900    |  1856

For other information, contact:

Shvonne Craig, [email protected], 203-307-5113

Thanks @Hattie Dizmond it might have been misinformation on my part.

Thanks @Account Closed for the info on calling the loan due in full.  From what I understand the vast majority of mortgages have that clause in them.  Have you had experience with this?  Does the lender usually call  the note due?  I would assume it would probably depend on who the mortgage is with and whether they care or just want their money but curious.

@Hattie Dizmond I mentioned the 3rd party as a way to handle payments for me.  I wouldn't trust the owner to pay anything like the mortgage on my behalf.  I guess I could pay things myself.

I'm going to listen to podcast 31 a little later tonight, thanks.

@Lauren Oberg when you go to probate, don't give up if people don't understand what you want to do.  Every probate office I've gone to except one had no idea what I wanted to do and didn't know what to tell me.  One tried to turn me away indicating I couldn't just look at records without having one in mind and a group of ladies at another one looked at me like I had three heads when I said I didn't have a record in mind, I just need to generally look.  They all had to go get supervisors and fortunately they all knew exactly what I was talking about.  Fortunately in CT these records are all free and scanned in as soft copies so life is easy.

Thanks @Wendell De Guzman I'll do that.

I want to see if the scenario in my head makes practical sense. I'm in Connecticut but any advice or feedback is appreciated.

If someone is in the foreclosure process, could I purchase their home subject to the existing financing? I know I'd have to pay whatever the bank would require to get it out of foreclosure, then beyond that take over the payments on their existing mortgage using a 3rd party to handle any payments that may need to be split.

I think I'm simplifying here since we'd also have questions about insurance, taxes, etc... However, for the sake of just purchasing the home - can/should that be done?

Does anyone know of any lawyers in the Fairfield and New Haven county area that are wholesale savvy? It's been difficult to find a lawyer that's knowledgable of how contract assignment in wholesaling works.  Right now I'm working with a very knowledgable RE lawyer but their a newbie when it comes to wholesale and contract assignment so we've been essentially "learning" together.

I'd also love to get contact info for attorneys that knows about structuring sub2 and seller financing contracts.