All Forum Posts by: Tim Winter

I'm assuming you're wanting to buy near your current hometown of Vail, so being on the outskirts of Tucson, the above comments may not apply to you. Tucson has been a zero growth area for quite some time, so would be interesting to see if that has changed lately, especially where you are. I'm not sure if that has rippled out to your area yet? Have you attended the AZREIA meeting there in Tucson to check on the market and ask questions? I would start there.

As mentioned previously, deals are to be found, it's just a matter of what you're looking for and your investing goals. Some are harder to find than others in the current environment. 

@Jay Roney, I'd echo what was said there. 

1. Search public records
2. Skip trace the address
3. Find the PR from the probate case, to see who get letters testamentary, as they'd have the power to sell the property for the estate

Once you have the PR's contact information, you can call, email and direct mail that person, and also the probate attorney, if there is one. 

You can also door knock and talk to the neighbors, but during pandemic this one is less likely to succeed than last year. your mileage may vary though.

@Matt Ridenour I would present the seller with 3-5 options, depending on how sophisticated they are with real estate. If she's from out of county, this will be even more challenging as property rules are different from state to state, much less another country. 

That being said I would offer a lease option, an all cash, and a seller financing deal (if it's free and clear or close to being free and clear.) WIth the seller financing would delay payments for 2-4 months to do the rehab and have a balloon payment in 2-5 years. With lease option give yourself at least 9-18 months to do the rehab and find tenants, to get the property cash flowing so that putting traditional financing on it would be that much easier, before you have to exercise your option (and gives you time to get past the current external market issues.) 

Giving the seller options means you're less likely to hear a no. But putting out a letter of intent with multiple options to someone outside of the country might not work as well, without being able to talk them through the options, the benefits of each, and in trying to find something that appeals to the seller the best. 

But given its an inherited property the seller carry with money per month until the property is stable would for most people in that situation, to be the most appealing. But an unexperienced person with no explanation will get pushed into unknown territory, and make it that much more likely they'll just say no.

• Higher earnest money, put down 2.5-5%, whatever you feel comfortable risking
• Get fully qualified, not just pre-qualified. Have your lender put you through underwriting and speak to the listing agent about how quick and solid you are.
• I wouldn't recommend waiving inspections, but you can shorten it down if you are on top of it and have a good inspection company or contractor to take to the showing before offering
• Price and cash typically win, but owners have other pain points: quicker or longer close, lease back after sale and move when they're ready, they may want to sell to a family or of a certain other type that will look after their home, etc. You won't find this out unless your agent is asking before you offer
  
• Write in additional terms that you waive your right asking for any repairs, and will only ask for lender specific demands (treat termites, etc.) but will make up for those with buyer to pay seller closing costs to equal that amount
• Offer to pay for all closing costs (excluding commissions unless you're really motivated to make the deal happen)

If you're really daring, you can try these much more aggressive tactics; not for the faint of heart or inexperienced. 

• You can offer a portion of your earnest go hard after inspection period... let them know you're in it for the long haul and won't flake out
• Use a semi-hard money lender so you can offer cash offer. A semi-hard money lender that will do a rehab reserve and works with traditional lenders to refi you after closing. They will qualify you like a traditional lender, but will transfer all cash funds to the seller if they approve the ARV value during inspection.
• If the deal is good enough, you could JV or partner with another cash investor and use other lines of credit so you can make 'cash offer'. Then after rehab find a traditional lender to cash one or both of you out of the deal at that point.

How good is your relationship with a local title company or officer? You might ask them to run a quick title search to find the owners and at least mailing addresses. From that you might be able to skip trace emails and numbers. 

@Kyle Johnson, it all depends, how much do you know about the various Ohio markets? As mentioned previously there are different appreciation and rental rates for each area. Do you know enough to feel comfortable investing that money? 

We're still finding good deals here in the Phoenix and surrounding areas for various investments, and are playing the long game. 

We've looked at various markets in Ohio and Colorado, having some experience in various cities in each area and understand some of the factors that affect those markets, and weighing all the factors we're still focusing most of our efforts here in Arizona. 

Hi Daniel, 

I never bought the course, so I can't speak to the value. You have earie timing, as Mr Bosch talked at AZREIA meeting last night, and I'm taking his cashflowing with land workshop tonight at 6p MST. It was only $30 for the one night for members, so was a no brainer to see more of his numbers. I think you can join it from New York as a guest, as it's a virtual event. He's also doing a deeper dive this weekend for more but not interested in as you say putting that much money into it until I believe it'd be worth it. 

Not sure if BP will allow the link, but here's the direct link to the event tonight https://members.azreia.org/eve...

Investment Info:

Townhouse fix & flip investment in Sun City.

Purchase price: $96,500
Cash invested: $25,000

This one was passed over by several other investors, found it on MLS. The ceiling had some water damage from roof leak about a decade ago, that scared off most people. Was just cosmetic and roof was solid, owner just didn't have the money to fix the leaks, plumbing, ceilings, or even broken appliances.

What made you interested in investing in this type of deal?

Was hoping to turn it into a fix and hold, but complex had a waiting list for rentals, so put it out there for sale with creative financing as well as traditional and got several offers

How did you find this deal and how did you negotiate it?

It was on MLS. Made my usual multiple offer LOI and they took the all cash offer.

How did you finance this deal?

Hard money loan

How did you add value to the deal?

gutted and redid the townhouse, saving most of the kitchen and closets

What was the outcome?

Going to make back down my down

Lessons learned? Challenges?

Always check with HOA on rental policy, even if they say they allow them, doesn't mean they're at the right ratio to allow anymore

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I was the agent

If they're not open to seller financing, what about private financing? Relatives, partners, other investors willing to be money partners? Have they attended their local REIA or BP meetups in the area to find other like minded individuals that they can leverage their better credit?

Have they looked into credit repair services like Credit Jedi?

Hey Anthony, 

I'm surprised to see no other posts in here, so I'll chime in. After struggling to find what we were wanting here in Greater Phoenix, we've started looking outside the area, specifically in Prescott, AZ, around Taledo, OH and in Colorado. We're picking areas that we know the neighborhoods quite well and have family or friends in the area, or (in the case of Prescott) close enough to drive out if need be. 

Another thing to think about is picking areas you either travel to alot or would like to travel to a lot. Then when you're in town you can check on your property and put that on your tax return. If the area makes sense for short term rental, you could go that route and block out the rental when you're in town. Or reverse snow bird.