All Forum Posts by: Dovid Staples

@Christopher Phillips I mean is it common for a broker to get a loan in their name on behalf of the buyer

I understand @Christopher Phillips, but the brokerage firm does not  own the asset. They only got the loan for the actual owner. I wanted to know how common this sort of thing is

Hi BP,

I was trying to determine ownership of a property. The DOT and the LLC address pointed to a brokerage firm (and one of their brokers signed the loan). I called the person who signed the DOT at the brokerage and he told me who the owner was and that since they were an out-out-of-state first time buyer he couldn't qualify for a loan "so instead he coaxed us into signing a non-recourse loan for him"

Is this what it sounds like?

what is your price range

@Jeff Greenberg instead of deducting a dollar amount for risk wouldn't it be simpler and more straightforward to just increase the cap rate in your valuation to be commensurate with the risk?

@Oscar Pinto I went ahead and used your method and reached a pro forma value of $1.7M (based on a cap of 9 and on a price per sq ft that was $2 below market rate assuming I'd offer a low first year rate to get tenants in quickly).

I deducted $47,520 in commission to lease, $66,000 for five months holding cost, and apx 27% for the risk as @Jeff Greenberg had suggested. 

I sent her an LOI along with a nice cover letter for $1,100,000.

THEN i realized I was looking at the wrong info (after I triple checked!) and have valued the property based on the square footage of one of the spaces totally ignoring the other two. However, I also know she recently sold a smaller, but already occupied building next to this parcel for $1.4 and that she still has a bridge loan with a 10% interest rate due in the middle of this August. Suffice to say she may be motivated enough to negotiate from what I sent.

SFR? MFR? Commercial? How much rehab?

I haven't seen anything in the forums less than a year old about this, but here on phoenix I hear a commercial for Offerpad/Opendoor perhaps 4-5 times a day. Always kinda figured they must lowball quick cash offers and wholetail them. But finally I came across an REO they bought for 272,500 and have listed for 294,900. A decent spread assuming no work needs to be done and they can avoid any closing costs. A friend of mine has their house listed at 260k and decided to give them a try; they offered 230 site unseen and no pictures. She hasn't tried what they'd offer with pictures included.

I'd like people's opinions on their strategy of what seems like spray and pray. A year ago people on this site were predicting they'd fizzle out, but they haven't. Do you see them as a major factor in REI? Is their strategy something you'd replicate?

Oh I totally missed the *mortgage* broker part of that

@Tim Winter