OfflineI was looking to buy investment properties in Charlotte NC. I tried a year ago and didn't have any luck. I contacted remax and they assigned a realtor to me who recomended york county sc. The schools were good so I bit the bullet looking for a house I could buy under 20k. I found one home 2 beds 1 bath for 20k. It was built in the 1950s and has been an investment property for the last 25 years. The last person to rent it paid $595 a month. I am going to offer 10k and figure it needs 5k worth of work. I do NOT have a property manager and will call and interview 3-5 tomm. then pick one of them.
I am getting really nervous about submiting my offer. I don't know if it is just nerves since I have never done this before.
I don't know how this will work or what the closing process or cost should be. I figure i need an inspection ($400) and title fee (300??) .
The cash flow would be
$595(rent if it's market I plan to as the Pms tomm)
-tax($49)
-Insurence($75?)
-Mortgage($103)I plan to refi 20k to cover all cost
-Prop Manager ($40)8%
-Repairs holding ($80) money i put aside for vac and repairs
Leaving me with $152 profit.
I actually feel better after doing that math again but any help advice would be much much appercaited. (This is all if the except the offer too)
Also the RE agent told me to write amount if the repairs go over I could walk away. I rather write for any reason I could walk away. How would I do that?
Nervous are you useing your own $$$ to pay for this, man that would make me nevrvous,Hello why are you using realtors? Are you super rich, OPM is the way to go, no way would i sign for loan from a bank, use other peoples money is the way to go, Man there is a better way,you dont need no realtor to buy properties in this market,Most realtors are only thinking about how much they can earn, they dont care about you. While we are talking about market what are you doing for marketing, Do you have bandit signs out at busy intersections around town, at wal-mart sams club mcdonalds etc walgreens, get the phone ringing with motivated sellers, put signs out looking for sellers,and signs out looking for cash buyers, I suguest you start out by flippping properties wholesale to investors with cash in the area. Build your list start small and work your way up....Action+knowledge=Success....$$$$$$$$$$.....
Just get out there and do it, learn make mistakes thats how you educate yourself...good luck...best success to you.Do you have bussiness card to pass out, Are you a member o =f the local REI club in the city you live in....Do follow the pack, find your own deals out there. Call every FSBO sign you see. and follow them up just because they say no today, later down the road there situation changes and you could find onereally sweet deal.
"Action and Mistakes" always-outweigh "Analysis Paralysis"
...Just do It"
http://www.linkedin.com/pub/john-hoening/23/2a3/164
"Action+Knowledge=Success....$$$$$$$$$.....
www.WeFlipDesMoines.com http://facebook.com/desmoinesinvestmentproperties
www.iowarealestateflipper.com
Hi des monies, thanks for your comment.
I am looking to do assignment in my town (westchester ny) I am looking to buy and hold in nc.
Maybe you should do a few assignment deals before you start buying and holding. Just so you can work with a few investors that have done it. You can wholesale to them and at the same time get some free training.
now that its morning any help on clsoing this?
I was going to do the walk through after the offer was accepted but before closing. Is that the wrong way to do it?
Mpressmi, my thoughts:
1. There's nothing wrong with using a realtor as a buyer because it won't cost you anything (generally), so don't be afraid to do that. There are tons and tons of properties up on the MLS and are usually put up by realtors, so you'd be foolish if you only looked at FSBOs because that's a smaller world.
2. You COULD do a walk through (I sure hope you mean inspection!) after your offer is accepted, but you must make sure your offer includes a back out contingency that says its dependent on the outcome of the inspection, and give yourself a 7 day inspection period in your offer (not 3 days, but hop like a bunny).
3. As far as "property managers" go, they are generally licensed realtors. I would meet several, as you plan to do, pick their brains, and at the end of the day, you do not need to pay for property management, especially if you are in the same town. You could save yourself that money and carefully screen applicants, running their credit reports, etc. There are many online background check companies, and if you want me to recommend one, just PM me.
4. You're going to have to put down an EMD (earnest money deposit) along with your offer, so I'd only recommend $500 (give it a try, they can always tell you to up the EMD). Make sure you get your inspection immediately after your offer is accepted and depending on the outcome, you may want to back out, but do so right away or you could lose your EMD. You may want to remain in the deal after the inspection, yet lower your offer. Be prepared to walk away if you have to lower your offer and the seller won't make any repairs, and as indicated above, check back in a month or so and you could submit a new offer based on your new knowledge.
5. Who knows? Maybe at the end of the day, you'll buy the property, doll it up and then flip it. A few flippers like that might increase your capital, and then you'd have more money to work with with a buy-and-hold.
Look deep before you leap!
Good luck! Hope this helps! Keep us posted!
Hi travis, SC hmm may need you in the future. I am trying to assign where I live but it's a different game. The numbers are really high to start in the decent areas.
Jenny thanks for the motivation. I will call the pms right now got some off of angie's list and google reviews.
Jenny thanks for the motivation. I will call the pms right now got some off of angie's list and google reviews.
Why don't you just get some bandit signs so you can find some motivated sellers? Or how are you finding sellers?
By the way, check your PM.