All Forum Posts by: Valerie Pedigo

Hi Norm - hope all is well!

Are these deals not fitting in the wholesale mold? For example, ARV x 70% - repairs - fee = max price. You may have found leads for a different exit strategy. Let's say you have someone who wants close-to-retail for their house, but are willing to do a lease option or carry back financing.

As far as narrowing down over the phone - I found some scripts that seem to make sense. Do you want me to email them?

Bottom line is making an offer that fits into your numbers and if they think it is too low - then politely end the call and follow-up a few months down the road. They may be more willing then.

Sounds like your mailers are getting great response!

Good article. Definitely agree that more and more markets are seeing the gap between renting and owning shrink.
Where I live (and invest) the average home price is around 70K and the average rent is $650 mol. No brainer.

I've been seeing an influx of first time homebuyers, which is great! Just a tip - if you currently rent and are looking to buy, make sure you're paying your rent with a check. A lot of the banks are asking for 12 months cancelled checks to prove on-time rental payments.

The process of buying may be a little overwhelming - but worth it! :)

I just read that email too, Eddie. Mentor Financial Group (where the email came from) is Peter Conti's company.

Pretty interesting. A lot of the bad marks for these companies are from refund/exchange issues.

Stacy,

Can you PM me the address and any other details for this listing? -May be interested.

Depending on the location in Erie/repairs needed - could be a little overpriced IMHO. (Even if it meets the 50%/2% mark - much higher cash flow is common here.)

Thank you,

Valerie

I agree with Matt - there is often confusion about modular vs. manufactured.

Quick overview IMHO:

Manufactured (doublewide/singlewide) - 1 piece or 2 pieces brought on site

Modular - a "kit" where the pieces are built in the factory and then erected on site. (The apex home is a modular.)

Panelized - panels for the superstructure of the home are built in the factory, erected on site.

Any of them can be on a full basement (just not as common on manufactured homes.)

About appreciation - modulars and panelized appreciate with the market and in lending are underwritten as stick built. Manufactured are considered depreciating assets because they are basically a vehicle rather than a house. The framing is metal, the materials aren't always the best, and it wears rapidly. In lending, they are pretty much shut off right now.

See my site in the signature below for more info on panelized homes.

Are you looking at building?

-Valerie

Hilarious. It was a tough choice for me when I logged in...short sale research or politicians and pornstars. :lol:

Has he considered a lease purchase, sweat equity, or owner-financing? If he is looking for a distressed property, I'm sure there are sellers that would trade the down payment for the rehab. Or even spread the down payment over several months as a note. If he isn't in a rush, then he can start calling motivated sellers, just like an investor would and take his time finding the right creative deal.

I hope I didn't give the impression that landlording is easy, nor am I advocating student housing. Just wanted to encourage research and networking.

Like any other investment, you have to account for all of the variables.

Keep us updated!

Adam,

There is actually a group for out of state landlords (with over 400 members.) Here is the link: http://www.biggerpockets.com/groups/20

You are starting out with a plan and that is the most important thing! Read through the forums and keep asking questions!

With technology and solid property management, it is absolutely possible to own out of state.

College rentals are good because you can charge per room and the students pay for the entire year in advance.

Make sure you do a lot of market research before diving into Boston, Philly though.

Have you thought about Columbus or somewhere similar to that and closer to you?

Wish you success!

Going into subordinate position is definitely a risk. Most HM is interest only repayment, so the balance will not go down. Once the HM lender files the amount in the county records, they can't increase it. But, the balance/payoff could increase due to fees, penalties, etc. in the event of foreclosure.

Remember they will alway be paid first, no matter what.

Take a good look at the rehabbers exit strategy and request to see a copy of contract from the HML.

It is not difficult to file a second mortgage - I'm not sure about MD laws, but here you have the rehabber sign a mortgage/deed of trust and file it in the county records. You (or they) pay the filing fee and mortgage tax if applicable.

I would always have an attorney take a look and even notarize the documents.

Just my 2 cents. I'm sure someone will chime in if I'm wrong or if they know more about MD law.

Good luck!