All Forum Posts by: Loc R.

Eric,

As everyone else has mentioned - yes, have taxes and insurance impounded.

And most certainly YES, be sure that you have someone on your side review/draw up the documents.

Finally, please consider using a 3rd party servicing company to collect on the note - should you decide to liquidate (sell) the note having an independent 3rd party record of collections will help speed along the underwriting process.

Joel,

Sorry to hear about your loss at such a young age. I lost my father last year - even though we weren't close, it is still a significant loss.

I wanted to share with everything this post from another site I frequent, I thought it was very well written:

http://profootballtalk.nbcsports.com/2012/06/17/happy-fathers-day-now-be-a-great-one/

Since we're on the subject of 1031s: Has anyone here been involved in a real estate transaction where the other party was doing a 1031, and made significant concessions (price drop, terms, etc.) in order to facilitate their 1031?

In other words, did doing a 1031 make them a "motivated BUYER"?

Create an identity, a brand if you will - that makes you synonymous with whatever it is you're trying to do.

Think about Clorox...they have done so much marketing over the years that people don't think "bleach" when it comes to whitening their clothes, they think "Clorox."

A logo can be crucial in creating that identity...

I have been doing research and shopping around for a laundromat for 3 years now...here are some things to consider:

1. Sellers ALWAYS fudge their #s. It's too easy in such a cash heavy business.

2. You are at the mercy of water rates. That is one factor you just keep your fingers crossed on.

3. You must set aside a certain % of your gross for replacement. Replacement is a (very big) fixed expense.

4. It is more time consuming. Who is going to manage the coins for you? Someone else? Good luck with that. Now you've just bought yourself a regular route in your weekly routine, so you better get something close to you. In a laundromat with 80 machines, there will always be a problem with one of the machines. You can have a repair man go out ($45+ a call) or learn how to do the "easy" fixes yourself. That's like having one tenant call you per week with a problem, except that when one of your machines is down, that machine is making you ZERO money.

Whether a "small" deal like this or a bigger deal suits you and your family, only you can really know.

Cash is king. If you're sitting on cash, you should be able to command top prices - you just have to find the truly MOTIVATED sellers.

There are a lot of ugly worse-case scenarios that could (and do) happen with rental condos, such as:

If X% of the condos in the complex are not owner-occupied, then banks won't lend on them. Condos for sale sit, and prices drop.

If the HOA decides to make life hell for tenants, you now have a less rentable unit.

As to the financing, I think the other posters touched on it.

As to the pricing, remember: RETAIL IS FOR SUCKERS. I'm sure you don't like paying retail (full price) for your clothing, so why would you pay full retail for something like a HOUSE?

I am very anti-condo, but that's just me. I'm sure you can make money if you buy right, but the HOA is always going to be there, hanging over your head.

You would have a title company write up a mortgage where you agree (mortgagor) agree to pay your friend (mortgagee) on a loan on X terms, with the property as the collateral.

They would then record it with the country for you.

I'm always looking for notes to buy, so my reasons for being here on BP are to:

1. Find notes to buy (though note holders or note brokers).
2. Help investors and agents create notes (help them get more deals done), so they can then turn around and sell those notes to ME!
3. Find money partners for when the day comes where I come across more deals than I have capital for.