All Forum Posts by: Scott R.

I agree with James, and I think them telling you that was just because they didnt feel you could provide them deals cheap enough everyone could make money off of, here locally most of out "wholesalers" are actually good friends and sell eachother properties where everyone makes money, if it work it works, it just generally has to be a very good deal for it to work from everyone.

Land is VERY HARD TO WHOLESALE.
you claim they had it under contract for 2.7,
what do they owe on it?! can they sell it for the tax value?
do they just want out? would they take $200,000 or do they still owe $2mil? lots of questions here..
I recommend you buy it for $100, but thats doubtful.
PLUS if the tenant did that much damage, you'd probablly need to demolished whatever is on the land, lost of cost here, but if its a lot in downtown LA awesome for 2 mil, if its in rural texas, i might not pay the $100 for it.

If you fully disclosed that there were problems theres NOTHING they can do! theres almost nothing they can to even if you DIDNT disclose. I AM NOT FAMILIAR WITH commercial property, but with most residental, you would provide a sellers disclosure, and list what you KNOW is wrong with the property, but they could ALMOST NEVER prove you knew about existing problems, unless there was some type of documentation. I WOULD NOT provide any info about the sewer being snaked, because it does show you had problems, which should of been disclosed, but you said you disclosed it anyways, so i dont understand what they think they are going to accomplish with this..
IMO ignore em, until further notice, if they do find a lawyer that is willing to take this case, which i dont think they will, i might reply if i got something from the lawyer, otherwise screw em! :)
with all property sold, especailly at a discount, or "wholesaled" property you should have some type of disclosure that they are welcome to have the property inspected, and the property is AS IS!

I agree with Ryan,
I deal in lower income areas and my cream of the crop are 2/1.. mostly single mothers, 1 or 2 kids, the 2/1 work perfect.

Creative financing would be needed in this situation, in order to obtain mass properties with little or no money down.
You should start looking for long term financing with a private individual/company. Do you have any type of Self-directed IRA? do you know anyone who does?
IMO in todays market, your best option is to find an old, tired landlord, one who may not need the lump sum of money right now, but has properties hes looking to unload. find someone getting out of the everyday work, and would be willing to owner carry and just collect his check every month!

1 bedrooms just equal high turnover rate, as theyre generally just rented to single people and possibly couples, they just always outgrow them, alot sooner then expected.

College towns are good for rentals, although probablly terrible for a long distance rental. your turn over WILL be every year at a unit like this, one bedroom by the college. IT WILL be rented to kids, IT WILL most likly be the host of parties, evey if its a tiny 1bed. College students GENERALLY dont take the best care of there rentals, its there first taste of freedom for most, and that generally shows.
If its been on the market for that long, theres probably something wrong with it., maybe mechanicals, maybe price, maybe anything. look into that!

Do you live in Israel? if your no where near this property, and going to be managing long distance, there are probablly better deals to be had other places. Also at $495 a month id guess theyre 1 bedroom units, 1 bedroom units have the highest turn over and are the hardest to rent.

also just realized taxes and insurance show to be around $14k a year, thats 4 months of FULLY RENTED, GROSS RENT to pay those.. seem high to me..

$80k rehab is pretty huge. gonna be alot of investors that wont want to get in that deep, or dont have the funds to allow them to.
not sure if the correct property was linked, it shows asking price of $38k.
If it was a wonderful deal, which im not saying this is or isnt, posting a link to the info isnt smart, anyone can read these public forums, not sure how well this property is advertised or not, but if you do all the dirty work to find these properties, I personally wouldnt want everyone knowing the street the property is on and other info.

3300 in rents, using 50x rent multiplier, $165k would be a decent purchase price.

Cant really ballpark the whole rehab when you havent seen it, not to be rude, but you never know with a 4500 sqft property built in 1909. $80k in rehab seems huge, but you never know with such old properties, plumbing and electrical could cost 10's of thousands to bring up to code.
MOST investors that would be looking to keep this as a rental probablly wont want a property with $80k rehab.
MOST investors that would be looking to flip a property PROBABLLY wont be looking for a multi unit, as the end buyer would be alot more scarce then other properties.

$80k rehab, $32k purchase, $112,000 for a $165k property seems good, but there are too many what ifs and where you going to go with it.
I'd say most people youd be wholesaling to would want single familys. if it was a $165k SFR with the same numbers, id say you have a pretty good deal IMO, as youd be around 70% ARV with your estimated numbers, even with your $5k fee.

always look for a bargin to buy.. something with instant equity. would you be purchasing this for yourself to live in?