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  • Ditto on what Don said. Spell it out.

    Glad you joined…there is tons of info here and please make an effort to ask questions on the forum. One of the things we enjoy most is when a CFD member scores on a deal. Let us know how we can help you.

    My two cents…Kim I’m in central California, two hours south of you. I can tell you that the RE market in CA is a big facade. Brokerage companies and RE agent are in on tactical plans to hold properties to drive up the price.
    I learned the hard way not to deal with banks and agents. Hard money is overrated. There are other ways to structure deals with out the need to borrow the money. Sub 2, trade or owner carry is the best way to buy a house for yourself for long holding.

    My name is Arcinio and I met Jackie through a Panamanian blog. I’m from Panama and currently live in California. I’m rather new to the RE world. With n the last 2-3 years I’ve been spending a lot of time reading and learning about creative RE. I’ve done a few successful wholesale deals, dabbed in Lonnie deals and worked with others in a partnership. Overall, at this point in my life I’m working solely on quick cash deals. I’m 34 married with three small boys and one more (last one) on the way. Hoping for the girl. I’m a Minister, Professional Photographer and soon to be pilot hoping to do a few more deals to buy my own plane to fly around in Panama!

    There are too many “unseen” things such HVAC, pluming, tenant leases. Also, per the current market in my area, I don’t think I can sell these right away. The 3% is a withholding only if the homes were being sold for more 100k each.
    Honestly…I just don’t feel to mess with holding properties if I end up moving real soon.I’m gonna pass on buying to hold. I need to focus only on quick cash deals. I just don’t want miss any good opportunities. Should I be afraid of missing deals if I focus on wholesaling?

    So what about this:

    We spoke again I told her I can not buy all 5 of her homes on those terms. She then asked me if I wanted two. She’ll sell two for 150K, 0 down 6% on a 30 year note. After all expenses, I’m left with about $500 in cash per month. The homes need no repairs whatsoever. They were just fully remolded. The kicker is I pay closing at $300 per house ($600).

    Why so? What would you suggest?

    I went for a revisit and coffee session today.After some time, her homes came up for conversation.
    Here’s the break down….

    Five homes free and clear,
    owner 82 years old/ daughter 55 years old
    Income cashflow:$3025 per month
    Expenses (taxes/insur): $890 per month
    Current market value: $350K
    Repairs: none, all homes have long term tenants and need nothing at this point

    So she asked what I thought about the homes and what I planned to do if I bought them. I honestly told her I would like to keep them long term as income and for my kids in the future. I then told her what the market values were and she grimaced, stating that she would rather die versus selling them for current market price ($350K). So then I remembered reading that Jack Miller says its ok to pay more as long as the terms work out. So I presented to her that I can buy them for her asking price of 600K only if she carries paper. She asked how much I wanted to put down and I told her I had my money tied up. So said ” no problem can you make balloon payments on the down”.
    She’s willing to carry the whole package deal with nothing down. She’ll get $2,070 a month for 30 years with 1.75%.
    She mentioned that the interest is low and she normally would ask for 7% and that in 30 years she or her daughter won’t be alive. She has no other heirs nor wants to give to any charities. She mentions a 15 year note. So I figure I would present to her again the fact that she’ll collect 2k a month and every five years I can give her a 25K balloon payment for the 100k she wanted down. She liked that idea but then asked about the closing cost and 3.5% state taxes she’ll pay on the sale of each home. I told her I’ll go to title and get an exact amount to close and inquire on how to divert those taxes. I think if I cover the closing and work some way for her not to pay the taxes…she’ll move on the deal. She is not interested in a lease option as she stated that if she sells, she wants title to transfer, get away from paying taxes and insurance and carry the paper.
    We so are close to making this deal… I just need some help on the lose ends. We’ll meet again soon.

    What if she mentions that 7% interest rate again?

    What if she mentions the ” we won’t be around in 30 years again”?

    Is there any way to get away from her paying those taxes to the state?

    Of course.. .I wasn’t planning to take title at all. When I said yes to her I meant yes to an option. I fully explained to her that I would go and find someone that may want it to rehab. She’s happy with anything as she’s counting the fire as a total loss. I may just make a deal stating for whatever price we get the lot for, we’ll split 50/50 . If we sell it for 12k, I’ll make a fast 6k.

    I like it!

    Would you mind sharing your ad with us?

    Wow…

    I though my house full of dead cats was a bad one. Anyone else have a story to share.

    I will double check the numbers…that’s just what they told me. I was thinking of doing a HBS on the five free and clear, selling all as a package or one by one. The try my best to sell the other twelve that a have a mortgage.

    Also wanted to some numbers although not yet verified but this is what the gave me…

    $2.9 million in property value
    $1.1 million in mortgages

    $16k in rental income (gross per month)
    $13k in expenses ( P&I, insurance, taxes, upkeep)

    about $3k left over in cash flow

    I am also considering the long term idea. What if I master lease all properties with an option to buy later. Where can I get information on the forms and “how to” on MLO? Tilney’s class is in September but I can’t wait till then.

    Or

    If the loans are decent with positive cash flow form the rents, what if I buy subject to. Do I need to go through title company on a sub 2 deal. What would my cost be?

    For more exposure…are there any other free sites where I can advertise? I have three CL adds running as well as the CFD DEALS section. I would like to find a buyer before I leave next week.

    I just posted a three house deal on the deals page. I couldn’t find how to add a few other pics.
    Also, it would nice to see how the other deals are working out. Did that 7 house deal sell?

    If you wish to hold, I would get an estimate on the repairs and then go back to him to have him lower his price. If he wants to sell as is without repairs for top dollar then perhaps a HBS would work. One other idea… master lease with option to buy later. On the ML option to buy, subtract the amount needed to fix the place up. You maybe able to get an option for 60k, put some money into it and have them rented out until you cash him out.

    Welcome Maurice.
    Have you read Jackie’s book ” Real Estate on Steroids” ? That’s where I started. I then read a few Jack’s books and listened to lots of audios.

    Wholesaling and mobile homes are the best place to start as there is little risk.

    Also…two of the homes rent on a month to month term for $900 and $800 with both tenants on time rent payers.
    I think my wheelin and dealin will be to focus on the rehab and the amount of work needed to each home as well as the fact that I will buy cash and close fast.

Viewing 20 posts - 1 through 20 (of 98 total)

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