All Forum Posts by: Solomon Solomon

Hello Everyone

,

I am starting to look into getting into real estate investment. So, any advice is welcome :)


I saw an apartment for sale that I'm interested in. It is priced at $370K. So, I asked the agent to send me more info. So, he sent me the rent roll (I attached the screenshot to this post).

I looked at everything but the column that stands out to me is the "Past Due" column. It looks like a lot of tenants are owning rents.


If you are looking at a property like this,


1. will this column not be a great concern?

2. Will you still like to buy this apartment or will you just back out?

3. If you are going to buy this apartment, what will you do to solve this issue of past due rent?


Thank you guys,

Solomon

Hello everyone, I am Solomon. I joined this site long time ago but I am just starting to look into getting into real estate investment. So, any advice is welcome :). I am retired from US Army and I joined this site to get help in investing in real estate successfully.

@Shawn Ackerman

Hello Shawn, thank you for your help. I believe I'm allow to write my own contracts but I'm definitely going to use attorney, just to be safe.

@David Benton

David, Thank you so much for your response. That means I need to line up buyers first before looking for the apartments to wholesale.

@Mark Allen

Hello Mark, thanks for your response. Actually, I believe I know how to value apartment :) I use the market cap rate to divide the Net Operating Income (NOI). (i.e. $50,000/0.08 = $625,000. So, the value of this apartment is $650,000. Trying to buy it $520,000 to wholesale it for $550,000).

Right now I don't have anybody to partner with but I'm actively looking.

@Joseph Gozlan Thank you so much Joseph. I really appreciate your help.

@David Benton,@Joseph Gozlan, @Lorelei Kolegue

Thank you all for your answers. 

Joseph, the apartment is 25 units.

So, that means:

1. I will have two sets of contracts. One contract to lock down the property with the seller and have 60 days due diligence to allow me to find a buyer?

2. Then the second sets of contract for the buyer once I find a buyer?

3. Do I need to tell the seller that I am wholesaling the property and if I tell him, is that not going to be a problem if the seller see the price I'm selling the property?

4. What do you guys know should be the strategy to protect myself  so that I don't loose my earnest money if the buyer couldn't close for any reason such as funding, if the following scenario happens: I find a buyer at 45th day, he wants 30 days to close, but I only have 15 days left in my due diligence days with the seller? 

Thanks for your response.

Hello,

I am looking into putting an apartment under contract to wholesale to somebody else. This is my first deal and I want to make sure I can get a buyer for the apartment and If I can't within a period of time, I want to be able to get out of the deal without loosing my earnest money.

1. Do anybody have advice for my on how to structure this deal? What I must be careful of? A brief breakdown of how to structure this deal?

2. Do anybody have sample copy of how the contract suppose to be written to protect me in this deal?

Thanks so much.