How to Analize a Property in Minutes!

This is great timing on your post here! We just landed a 4-Plex that we have been looing at, we accepted their counter-offer!!!!! and the property fits nicely in your CASH FLOW RENTAL. We just paid 77% of FMV and only have $3500 in repairs to make. We are so excited.

Wow great minds think alike.

Regards,
Rohn & Shelley
DeJor Properties, LLC

i'm glad i could HELP, love to see yet another sucess story

I read your post and it is perfectly timed for my deal I am working on. It is a short sale with the lender. I have been contemplating what my bottom line is and you helped me determine that right now.

Pre-rehab value=$200,000
Rehab=$10,000
Closing Costs=$4,000
ARV=$220,000
Offer to the bank=$138,500
Loan to value if the bank doesn't counter my offer stated above 63%.

I expect them to counter offer but will not go above $154,000 which puts me at 70% loan to value. Thanks Troy

This will be my first deal and I will keep you posted on the results. Short sales can take time but can be well worth the wait. This should be my first deal. Remember, don't listen to anyone who wants to steal your dreams because they are yours and it is going to happen for you. Keep looking for those diamonds in the rough that are out there for those who are searching diligently. Happy hunting everyone and you can do it!!!

Possibly have 1st deal (reo) accepted, small 3 BR. bank asking $138900, offered $119. minor rehab needed. Is anyone experiencing the preapproval format thru the banks i.e. Countrywide, Wells Fargo, when I already have the needed preapproval and down payment thru a lender. Is this a way to get you to switch from your lender to theirs?

Homes On Course
Bruce

definitley keep me posted, i have faith, and looking @ the numbers that would be an Exellent Deal!, i'll tell you what, i wish i was the one that found that deal!, very little Rehab needs to be done, plus, you could have even offered a little more and still been o.k., but hey, more profit for you, GOOD JOB, Troy!

Hello,

My husband and I have started in our new walk toward the investment business, a dream I dreamnt for years. Now that the market is set for all of us investors, not only if we play are cards right, will be make a decent gain, but also, we could be blessing a family with a need of a roof over their heads. From the looks around the area I've suspected that it's a great time for rentals. People are losing their homes and from there where will they go if not to rent a place to live? However, my main concern is the fact that i've seen more rentals out there now then i saw three months ago, and the same houses are still up for rentals. There is one house of a fellow investor who has had that great place up for rental for a month now, and it has not been rented. How can this affect us if we purchase a property for lease to purchase or just lease it and get a steady cash flow as it grows in equity, and suddenly it just sits there and goes no where for a long period of time. Any suggestions??? Any strategies to use on a case like this??

Anthony & Liza
Woods Properties & Investments

Sully,

As usual, your posts are right on target! Ordered Dean's book about 2 wks ago...didn't get in till this past Wed and now in the 3rd section (Ch 15)...what insights he has!

PLUS, you and others (Rina, cbrpower, etc) have stretched my thinking in ways just reading a book could never have done...thanx for the quick analysis...frankly, I have never even heard of ARV until the forums...

You ARE my hero! wib

hey guys, The ONLY advise that i could give you guys in a situation like that is: PLAN FOR IT, another words, make sure when you make an offer on your next possible property you take into account that your probably going to sit on it for @ least 5-6 months on a FLIP and around 4-5 months for a RENTAL PROPERTY, deduct this cost from your MAO(max allowable offer) as HOLDING COSTS or CARRYING COSTS, as long as you do this, you'll be just fine

keep on reading, it gets better,

Anthony and Liza,
Here's something I use and it helps.

Let's say you want to rent your place for 500.00 a month, when you are showing your property tell your future tenants that the rent is 550.00 a month but you offer a 50.00 discount if the rent is paid on or before the 1st of the month. What this does is ensures you get paid on time and gives your tenants a feeling that by renting from you they are getting something extra.

I've owned one rental for three years and now I just bought my second rental and this has worked for me. Don't forget to put it in the Lease.

Just passing it along.

That's a really great tip. I like that approach better than adding a "penalty" for late payment. I'm curious, have you had anybody pay late and try to wiggle their way out of the extra $50?
You should post this in the renter incentives thread. I'll try to find it and leave you a link.

Thanks again,

Rina

Here it is.
http://www.deangraziosi.com/node/3692

When I had my two rentals, I NEVER had any vacancies. Maybe the owner isn't advertising it enough or consistently, maybe the rent is too high, or he's very selective screening his tenants and checks credit. If it's a good price, you won't have ANY problems keeping it rented. Just something to think about.
I didn't check credit, I checked employment and rental history, plus if they didn't have the full deposit I allowed them to split it up in two or three months. These are all great strategies to get your unit rented quickly and keep it rented.

Anthony & Liza,

I agree with Elena. If you find a property that will cash flow enough (and in a decent area), you should never have the touble of vacancy. You can try top-of-the-market rent prices, but you're not stuck if you need to lower them, either. I would say there's something seriously wrong if a property is sitting for a month or more.

btw, welcome to the site. It's good to have you here.

Rina

No, they have always paid the extra 50.00, I think the reason that I haven't had any issues is that they know it up front. I also charge a late fee of 50.00 in they pay after the 5th of the month.

Rent - 550.00
Paid on or before the 1st - 50.00 discount = 500.00
If paid after the 5th - 550.00 + 50.00 late fee = 600.00
You just made 100.00, beleave me thae want to pay on time.