All Forum Posts by: Kathy Utiss

There are private note buyers. But most like to get as cheap as they can then sell off to fannie as they pay top $. I was looking earlier she may even be able to go FHA even with such a score. But there are all kinds of private note buyers out here. I'm sure some could even chime in with the guidelines they would offer to purchase your note. Just make sure your dealing with reputable note buyers. There are definitely some shady characters in this industry. Always, always do your due diligence :)

There are a lot of different names involved in either residential or commercial real estate. Most of the one's you've mentioned google gives good examples on. Especially the math is fun one that popped up as you use the NPV-Net Present Value to get your IRR- the internal rate of return.

At any rate you say the purchase price is $1,600,000 for 16 units which is $1m per unit-the NOI is $181,000/12=$15,083 per month income after all expenses except these here.

The following are not operating expenses: principal and interest, capital expenditures, depreciation, income taxes, and amortization of loan points.

Generally, most loans are amortized over 30 years due in whatever terms you get so you take $1,600,000/360=$4,444+ interest, and the others mentioned above. So $15,083-$4,444=$10,639 if you qualify for a 5% interest rate that is $800,000/360=$2,222 so then you subtract that from the $10,639-$2222=$8417 per month net income before taxes or the capital expenditures, depreciation. Which with a good CPA as some that are on here advising you never know unless you ask :) depends on how much you think you need to make per month out of it...It's a close one. but it works out to about $101,004 per year but the full projection will probably be necessary. Those are just the basics to give you an idea of how to analyze a deal in my book :) Good Luck :)

Joel, 

 I thought it was pretty unreal as well. A lot of people want to get as close to 100% financing as possible.  I wouldn't of even mentioned it if I thought the person sharing info was me was being dishonest with me. I'm the last person who wants to share false info.  So I do apologize if you think I was trying to give bad info. Wasn't my intent by any means :)

Isn't there any public notice newspapers in Ohio? I think those are the best. In St. Louis its the daily record. Not sure about Ohio. But I just found Franklin County online http://sheriff.franklincountyohio.gov/search/real-estate/results.aspx?q=searchType%3dSaleDate%26searchString%3d5%2f15%2f2015+12%3a00%3a00+AM%26foreclosureType%3d%26sortType%3ddefendant%26saleDateFrom%3d%26saleDateTo%3d

$10,000 isn't much..But you never know with RE. As that's why people are in RE. Returns can be exceptional. Mobile homes may not be bad as they are probably the least expensive to rehab/resell with a small profit. Maybe more profit by holding it as a long term rental. Sometimes people invest in 2nd mortgages prior to foreclosure sales to reap rewards on properties prior to sale on homes that are in good shape and should go for above and beyond any notes on the home. Sometimes people try to raise money thru reg d filings. Not sure how much that works but if it's true could be the best $6,000 spent to raise real money to do RE. Another avenue I've been learning about as well is CTL loans. Where you buy commercial properties based on the credit of the tenants in that commercial property. They claim only 2% down on such loans. If you ask me commercial RE is the place to make some real returns :) but is also the most expensive :) 

I would try to deal with the IRS directly. But your best bet so we're not all chasing our tails here since its the weekend is see if the county has info online that can be researched or not.  If so it's not much different than  title company will do in researching title. However, I'd be speculative. As most the time the IRS doesn't put liens on property unless they think there may be assets above and beyond the home. 

What I'm implying is that the owner may have other people trying to put liens on his property that don't reflect in county records for whatever reason but may be shown by other contracts or credit bureau. 

Therefore, what is it you are hoping to obtain? If there is IRS liens and a foreclosure is it a deeply discounted property that will allow you to make enough to substantiate taking care of the IRS liens, other possible liens, repairs, hold time? Have you looked at days on market for properties in this area? Unless it screams OPPORTUNITY you may want to run :)

Kim, 

You did an excellent write up. However, while laws may be laws the banks transact short sales all the time without real estate agents! :) If he is in negotiation with the owner of the property and is trying to help him rectify his situation as a principal in the matter I'm not to sure how far your version of everything will be upheld. There is nothing that makes a homeowner have to hire a real estate expert vs doing private business. A homeowner could authorize him to talk to the bank in his behalf. A bank will not do a short sale on a property unless properly informed of what makes the short sale necessary.  

If presentation is sufficient, and an intelligent negotiator is in place it can be done in a matter of days! Then sometimes it may take months! Just depends how intelligent and up to speed someone is on the que of accounts they are handling. If someone has proper signatory approval for such transactions the settlement letter can be typed immediately then paid via bank wire.  

This is pretty confusing..There is a trustee sale on a property owned by a bank? If a home is up for sale via a trustee that has an IRS Lien on it the lien has to be paid if you wish to acquire prior to trustee sale. Unless you can prove its not attached to that particular property. 

If the home has gone to sale already and the bank is reselling then the lien on the property should of been extinguished when the trustee sale happened. If enough money was received someone else can chime in as to whether or not the IRS would get the money before the pretenders.  As most people know if a home goes to sale and receives above and beyond the opening bid amount any monies should go to payoff creditors then rest to homeowner. 

Ardie, 

Hello I'm right outside St. Louis proper. Having been in this business a while I would suggest talking with your realtor, title person, loan co if you are not paying cash. Even if you are using transactional funding these people sometimes have people in their pocket they use. If you have a good relation ship or can build one with them they do help. At least the transactional funder I'm working with does.  He even has a contractor who is able to determine repair costs and only visit homes if necessary. 

A couple of months back I had one I had hoped to do. I will probably look it up to see who purchased it. As before I knew my transactional funder did such I had someone I thought who could do a proper repair cost estimate and they didn't follow thru and cost me time I obviously didn't have. 

I looked on a free service I use called netronline.com. LA County recorders office isn't online. But it shows the assessors office to be. I find it to be a good tool.

http://publicrecords.netronline.com/state/CA/county/los_angeles/