All Forum Posts by: Walter Roby jr

I am working a potential deal where a seller wants out all cash with no contingencies in Los Angeles, CA. 

House is a 2/1 SFR 790 sqft but the lot is only 2200sqft! There are current non-paying family tenants, needs a lot of work although livable, and the owner just wants out. They have owned it for 40 years and is paid off. She has no time to show it and pretty much wants it sold sight unseen. Not very many recent comps but a nearby 2/1 880 sqft on a 2300 sqft lot sold (12/20/2016) for $540k fully renovated.

I am cautious of the small lot and cautious to offer sight unseen. 

Some risk-factors to consider: Small Lot, Top of the market, Not many Comps, Renting would be hard to cashflow+ with a mis-priced entry point.

Is it unrealistic to have a max offer below $250k?

@Ethan Esch I lived in Northridge for 12 years. Let me know if you have any questions about the area.

What @Gil Vaisman said. The only deals I see with potential meat on the bone are from old and poorly advertised listings.

@Dean I. Great post! I like how you broke down the numbers and explanation of how you found the property.

There a number of meetups in Sherman Oaks and some weekly ones in Encino if you search on meetup.com.

check out fixr.com

disclarimer: I am not endorsing them and do not receive money from mentioning them

@Steve Kiser I was going to attend this a couple weeks back but I am busy on Wednesday nights for the next few months. I would be very interested in a local REIA in the San Fernando Valley.

Estimate the amount of call volume you are willing to take on first then work backwards. Ex 5 calls per day, 150 calls per month. (if you get a 5% response rate) That is sending out 3000 letters. From there get your list from listsource.com and mail them with yellowletters.com. Mail to your list several times for it to work.

If you have the owner's address just send them a letter (it won't hurt). If you don't have it call your local county assessor's office and ask for it. The worst they will say is no or not respond. "No" only means "no" at this moment in time but not forever. Follow up if they don't get it rented.

A promissory note is an explicit contract (trust deed, deed of trust, mortgage) that outlines that amount you promise to pay to the mortgagee (lender/seller). Virtually the same thing. Verify this and get additional details from any BRE agent (I am not licensed at the moment).