All Forum Posts by: Vince M.

Assuming these are rental properties, check to see what similar SFRs are renting for locally. That should tell you if your rents are in line within the target area. You can then see about raising the rents or check with a Realtor to see what houses are selling for currently in the area and base you price to sell off of that.

While searching for properties a broker told me about a building he has and I want to see if anyone has experience with this kind of a deal.

There is an empty 2 story 12,000 sq ft medical office building that is located next to a hospital that has recently been closed. The broker has suggested that it can be converted to an indoor storage facility which seems like a good idea because it is in a state which has a fair amount of winter. The price is $200,000 and there is an appraisal from January of 2012 for $500,000. I'm located on the other side of the country and haven't seen it in person. It's been suggested to me that this would be a good property to flip instead of doing the conversion myself. Any thoughts on the best way to approach this?

Oops! He's paying me a fee to bring a "buyer", not "seller".

He's got them under contract and is paying me a fee to bring a seller.

I'm working with a wholesaler who has several apartment building in Texas and Florida.

1. Hidden Springs
This property is close to Foreclosure. Have to move fast.
The address is on Shiloh Road, Tyler, Texas
The Loan amount is the $2.3M asking price. Rents are $80 below market. Selling because of bad management. Seller pays my fees.

80 units Tyler, Texas
NOI 269, 418
Cap rate is 11%
Occupancy is 90%
Asking price is $2.3 million

2.Wheatland Gardens.
Wheatland Road, Dallas Texas. It's currently at a 7.25% CAP rate but the Apartments are underpriced for the area by about $70 each so there is room to raise the rates. If you look this address up online it will show up as a larger complex (around 277 units) and under a different name but the current owner has subdivided this down to 77 units. It is currently off market and the seller will pay the fees.
A recently rehabbed and stabilized C Class asset in a transitional area of South Dallas, the asset is priced to sell at $1,650,000 ($21,710/unit). The seller is highly motivated and is entertaining financing the transaction short term with 30% down payment at 5% interest only payments.
The owner purchased the Note from the lender in 2011, evicted all residents by the end of 2012 and began rehab. He “rebranded” the property’s reputation by changing the name, installing responsive management, providing security in the form of gated access and cameras, and renovating the asset.
The property has been stabilized since the beginning of 2013 and occupancy has been consistently above 90%. The property offers an excellent mix of spacious (avg 944 sq ft) mostly two bedroom floor plans, which attracts many working class families with children in the area. It is in close proximity to the three local public schools nearby and provides easy access to I-35, I-20, and Highway 67 making this a highly desirable location.

3.Spanish Trace
NE 2nd st Mineral Wells, tx
79 Units
Off Market for the moment
Seller= Private
No loans
93% occupancy
Price $2.3M

The same wholesaler has all 3 of these under contract and is willing to make a package deal for all 3 at a price of $5.7M which is $500,000 off of what they would cost individually.

4. ARLINGTON RIVER RD, JACKSONVILLE, FL 32211

CLASS B
BUILT: 1966
NUMBER OF UNITS: 112
OCCUPANCY: 83%
CAP RATE: 10%
NOI: $406K

5. JAMMES RD, JACKSONVILLE, FL 32210

CLASS: B
BUILT: 1973
NUMBER OF UNITS: 112
OCCUPANCY: 75%
CAP RATE: 7%
NOI: $291

Let me know if you are interested in any of these and I will send the Rent Rolls and Financial/P&Ls.

I've been enjoying reading and re-reading this thread over the past year or so. I hear from wannabe wholesalers outside of California who want to do business here and insist that they have to be in at $.60 on the dollar minus repairs. In my experience this can be difficult to do in CA although it may be necessary in other parts of the country where prices are under $50,000. However with the prices in California that top the mid 6 figure mark the profits can still be attractive to investors. For instance there is a property I know of that is being sold for $419,000 with minimal repairs needed and an ARV north of $600,000. An investor could make a 6 figure profit even if his ARV was off by $100,000. I know Will said earlier that in his market he considered being all in at $.70 on the dollar of ARV to be a homerun. So I guess the question is what is the minimum percentage of ARV that investors should be all in at in California? I know they want it as low as possible but what's the top end?

I just went through the RE Trainers and was able to get my license easily. Their Computrainer disc worked very well for me. You have to put in the work but it does pay off.

Hi Jamie. Thanks for the input. Right now I'm just in the exploratory stage.

The seller is behind because of loss of income from a divorce. It was an acrimonious divorce as far as she says. I'm guessing she wanted the house and he wanted out. She had no way to make up the income to cover a $2,000 a month mortgage payment. I'm guessing there's also a desire to not pay twice as much as the property is worth now but no way around the fact that she signed for it. I think she feels that it was a fraud for Countrywide to come up with an appraisal that was so high but, again she took the money. My feeling is that the bank may not go for a short sale because of the history reflected in the long period of non-payment. I find it strange that BofA would let it carry on for so long before starting foreclosure proceedings. I wonder if they have the original loan papers.

The bank will have to take quite a hit on this because she won't be able to pay and I don't see how they can get anywhere near the loan amount plus the HELOC amount as an REO given the condition of the property.

The seasoning requirements would be a major factor on if I got any further involved in this since I'd only be interested in a quick flip.

I found an owner who wants to do a short sale but I don't even know if these numbers will work and what kind of deal to expect from the bank.

The loan is was originated by Countrywide just before the crash of 06-07 and is now being handled by BofA. The seller has a loan that I'm assuming was a 35 year loan since the paperwork shows that 414 months are still left. The principal balance is over $292,000 on an ARM that's currently at 7.35% interest with payments of $1945 per month. The seller hasn't made any payments for about 40 months and it would currently take over $89,000 to reinstate the loan. For whatever reason BofA did not start foreclosure proceedings until a few weeks ago even though the loan went unpaid for all of that time. The seller tried for a loan reduction but didn't make enough to qualify for a refinance.

The current market value of houses of this size in this neighborhood are around $140,000 to $150,000. The seller has an appraisal from 2005 that shows the property has major foundation, structural, and termite damage none of which has been addressed in the last 6 years. At the time the loan was made Countrywide had their own appraisal that not only provided for the $292,000 loan but also a $50,000 HELOC which BofA now holds the paper on as well. The seller also owes taxes back to 2008 exceeding $5,000. From a structural POV the place is essentially a scrape project.

One other piece of information is that the seller bought this place as a Homesteader. I don't know if or how that affects anything.

So to summarize the seller owes BofA about $350,000 on a property they feel is only worth about $80,000. I guess the question is can anything be done with this and what sort of price would the bank accept?

I've just received a Bulk tape from one of my suppliers. It's $1.4M plus 4 points. These are 24 Single Family Homes. The properties are in Barstow, Auburn, Clearlake, Coachella, Desert Hot Springs (2), Fresno(2), Hemet, Kettleman City, Landers, Lodi, MacArthur, Morongo Valley(2), Sacramento, Stockton, sun City, 29 Palms, Wilseyville, Taft, Needles, Phelan, and Yucca Valley.

Let me know if you are interested and I can send you the spreadsheet.