Allen Brian
, NJ Active 2 years, 6 months agoForum Replies Created
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Posts
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Find a house that’s vacant and/or FOR RENT, or find a landlord at eviction court, and offer to buy on lease/option. Then assign and/or sandwich lease/option to the young couple, while working with a credit repair specialist, so that they can qualify for a loan after 2-3 yrs of on-time rent payments.
This is a great idea, Jackie!
Get the key holder to take pictures of the inside and outside, if possible.
Find a handful of investors (LLC’s) in the neighborhood via the property tax assessor’s website, skip trace and call them to find out what they would pay for a 3b/2ba house that hasn’t been updated for 20 years in that neighborhood.
Find out what tax bracket Jill is in to determine her potential tax liability from the sale might be.
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Proposal 1
Base on the #’s that investors may pay–
Entry: Offer an option to buy it for ~10k less than those figures. A property inspection, appraisal and 3D walkthrough of the house [to be used as an aide in selling or renting later]would be used as option consideration.
Exit: Depending on outcome of inspection report , either…
1. assign contract to investors that I contacted earlier,
2. do a Highest bidder sale for highest downpayment w/ seller financing (use Jill’s potential tax liability to consider seller financing)
3. or HBS for total purchase price. Offer to split w/ Jill the profits 50/50 as icing on the cake if need be.-
Proposal 2
Perform a landlord survey or contact an agent to inquire what rents go for in the neighborhood for such house.
Entry: Base on the rent figures, NNN master lease for ~70% of gross rents m-2-m, w/ option to buy for ~110% of appraised value, minus repairs from inspection report. For every on-time rent payment, 150% of that payment is to be credited against option strike price. 1st payment not due until a tenant moves in.Exit: Advertise house as rent to own. Find tenant that would want to stay long term and has ability to perform updates to the house. After repairs are made, and until tenant’s credit score can qualify for conventional financing, have tenant cash you out. Pay Jill any balance left [if any] on option strike price.
Hello Jackie, Thank you for your feedback.
The building is not sub-metered, and the utility bill can’t be placed under an individual.
HOA Governing Docs show that the apartment’s share of Proportionate Liability for Common Expenses is .5371%. My understanding is the HOA fee portion is $319 + Common Exp. $370 = $689/mo HOA?I will limit my offer to the asking price, thank you for the suggestion.
This is a 30 yr fixed interest rate no balloon, and the remaining balance is approx. $143k.
Hi – Can someone chime in on this topic, please? It was on part 2 of the Mini Options Seminar where Jack mentions optioning underneath a listing & insisting on paying the agent’s commission.
I am planning on doing this in NJ for a residential multi-family (owner occupies 1 out of the 3 units).
The seller: Melissa’s listing contract expires May 2017. As of right now, the property is not on the MLS, but the agent has it as a pocket listing.Can I lock up property with an option for below listing price, with a clause stating ‘I will not exercise until after the listing contract expires’?
Can Melissa and I record the option and record a mortgage on the property without knowledge of listing agent? Since I am exercising after expiration of listing, does the agent still need to be paid a commission?
Melissa wants to use proceeds from sale to downgrade to a smaller residence. Is there a way I can parlay this into a deal where I benefit on the sale of Melissa’s current and future residence? Can I 1031 exchange her current residence into her new residence, and carryback the financing having Melissa pay me directly for her new residence? What happens to the difference in money?
List:$500k (Seller has received verbal offers in the 400 – 420 range)
Debt: $60K HELOC/HE Loan.
Repairs: I have not walked the property yet, but she mentioned Electric and Plumbing needs attention.
Tenants: Buyer to inherit 1 tenant paying way below market value
Distress: Seller received notice that her department will be downsized this year. Seller also is tired of paying property tax. Seller is emotionally detached since she’s been living there for 40 years and 2 of her immediate family members passed away in the property and wants to move on and get rid of it.
Terms: Seller wants at least 3-6 mos to vacate and I told her I can accommodate that. Seller is very receptive to this as their agent couldn’t come up with such a deal.
How can I structure an option to fit these terms? Exercise option after listing with a window of 3-6 months to close? Giving the property time to appreciate and giving me time to find a buyer.
I am open to suggestions! I have zero deals under my belt.
Thank you,
AllenHi Jackie –
I am in a market that has a high rental demand, with virtually low/no supply of inventory, which in turn drives up sale prices.
I am considering the Master lease approach vs. an outright purchase of a 3-4 unit multi-family.
How does one present a Master Lease offer on a property listed for sale on the MLS?
Base on your experience, which targets are more receptive to Master Lease offers?
Which CashFlowDepot home study course, seminar or book, do I focus on to help guide the path to my first Master Lease?
Greetings!
My name is Allen Catbagan from NJ. I was recommended by Brian Mann from NJ to join CashFlowDepot.
I just began Module #1 and started reading Real Estate Profits on Steroids.
By 2017 – My goal is to eliminate my housing expense every month. One way I thought of doing this, is by owner occupying or having control of a small multi-family residence and renting out the remaining units.
While working towards that goal – I also want to complete at least 3 or more wholesale flips by 2017, to generate capital.
I look forward to connecting with you all and be able to help any of you reach your goals.
I am open to all suggestions .Best,
Allen
