All Forum Posts by: Vish Iyer

Welcome Eleia! BP is a great place to learn, I would also suggest attending local real estate clubs to build relationships and learn. Good luck, real estate is an awesome and fun vehicle to live the life of your dreams!

Vish

@Azeez 

Some of the things to look for (normally an experienced inspector and contractor would do this for you in your due diligence period).

- Do a drive by in the night and also during weekends, if you have a bunch of people hanging out in a corner, normally that is not a good sign

- Ask for actual rent rolls and two years tax returns

- Also individual meters are great

- Avoid flat roofs if possible

You can check on the physical condition but there are professionals who do this plus the bank would send their people anyway.

Overall the deal definitely looks interesting.

Hi Azeez,

It is difficult to say whether any experienced investor would do this deal without looking at this property.

Some of the things to consider and wonder are:

- It is a good idea to have 2 br units in any deal which gives an opportunity for a family to move in

- Vacancy of 20 % seems fairly high unless the building/area is going through transformation.  I normally dont touch more than 10-12 % vacancy unless I m renovating

- Is it a C or C - neighborhood?

- Having deferred maintenance of 5 % of the sale price is decent.

- Also what about rents being below market? It is a good idea to get a property whose rents are not at market. You want to maximize your cashflow and there are several ways to do it.

Hope this helps.

Vish

Yes all your points are valid. The email reeks of scam!  His office is in New York and I noticed he had several posts on BP as a private lender; which looked like he knew what he was talking about, when I called him he offered me this money first deal!?!

Thank you! 

Ok he was here in Biggerpockets and he even placed an ad for private lending. I am a fairly experienced investor so do my due diligence. I am new to BP and wanted to give  benefit of doubt to PRO BP members.

Now I see that his acct is closed...

Scam Alert:

His name is Geoffrey Petit.Here is his email I received. So watch out for this guy....

Attached are the documents you requested. Because of Non_Disclousher law I can reveal to you who has borrowed money from us. anyway go over the documents and see if its a fit if not maybe you can find someone else that has a similar program. Our minimum deal would be $100,000.00. Read it carefully we give you 100% and you don't have to pay anything back for one year at the end of the one year the 15% will be deducted from your deal. I din't think you will find anyone that can do what we do.

Thank You

Haifa Consultant,Inc.

Thank you gentlemen! Looks like no one has used it! 

Dear Investors,

I recently got an offer to borrow money from a hedge fund.

These were the conditions:  I put 5% of the deal amount into an escrow account for 30 days. After the seasoning amount, the company funds the remaining amount including rehab cost and takes 15% of the profit after the property sells.

Has anybody used this type of loans? The person also placed an ad on BP about  this. Is it ok to put ur money upfront? 

Please share your experience.

Thanks
Vish

The contractors were gracious to do it for free. Although, most were listing broker walkthroughs again at no charge. I m buying one and that listing broker is going to sell the property. I am a serious investor and will definitely work with the broker who is nice enough to take time to do a walkthrough for me.

Always take care of your team :) 

Dear friends, 

In the last 3 weeks, I have literally saved myself a lot of headache/bad investments with this one step. This tip is particularly for out of state investors. The typical scenario has been (atleast 7 properties).

Wholesaler: Awesome property @ 65 cents on the dollar, all the numbers look great, CMAs are great, pictures are awesome. You are ready to make an offer...wait, before you do it, please consider this important step.

I call the top ranked listing broker in that Zip code and request him/her to do a walkthrough of the property with a contractor. In the last 3 weeks, I had to say no to 7 properties which I would have signed for without this step.

A lot of investors get inspection period but as the market is heating up and competition is high and if you do want your  offer accepted. I would still strongly suggest to do a listing broker walk through, if you are flipping the property.

A 3 rd party listing broker will give their unbiased opinion on how much the property would sell. Five of the seven cases the listing broker's estimate was 20-30k less than what the wholesaler had claimed or even the comps have shown.

I am sure other experienced investors have some great input on this.

Just wanted to share my experience.

Regards

Vish

@Brian Freeman thanks for the detailed post. You gave me more than I asked for. Just wanted to know example deals to get an idea of returns, now it is clear.

Please add me to your list. 

Thanks

Vish I