Yahooo!! Deal #2 : California Gold with NO money down....

I would like to say congrats on your second deal. If your thinking about expanding your buisness and do some deals out of state, I'm in connecticut and have good wholesale deals. PM me if interested.

Congrats on your newest deal!

I enjoyed seeing you on the webinar also.

I wish you continued success!

Karen

That's pretty awesome! Great job on the Webinar also!

Reynold, Karen, and learntodayMN for the words of encouragement!

The rehab just started today. Also found a great investor friendly agent in the area today that sent me some filtered 25-1 deals on mls. I had a property finder call me from my bandit signs i placed last weekend who has a few properties and speaks fluent spanish (a very good advantage in CA). Time to make some more offers...and try to wholesale my first one!

Thom

that is awesome! a positive cash flowing buy and hold in CA!!! wow!!!

Congrats!!! Looking forward to hearing about more of your deals!!!

You are off and running!

I have a house here in california that is 8 months in arrears with the mortgage company how do I go about getting it under contract to sell. I am not credit worthy and want to see how I can do it need help

Where in California did you find a C2 10K ft2 with 4/1 house and rental unit for 66K?

You basically got positive cash flow with almost 100% financing.

The annual NOI is $9,000, that represents a 12% cap rate. Why was it not sold and required two price reductions?

a few questions come to mind. Did the owner walk away or has he just stopped making payments? Do you have a contact with the mortgage lender? Whose paying taxes on it, can you get their address and contact them? You need to find the person that can make decisions at the bank which owns it and make them an offer (asset manager). make sure you get all the details (numbers) of the current property situation. If it is too far underwater you maybe able to find a short sale specialist in your area who has or is a good negotiator. I must say I have not worked one of these deals but this is what i would look into if i were you. Hopefully someone else can add some further expertise.
Take care,
Thom

Well without giving away my targeted area I can tell you I like to travel up the 99.

I realized after a year of grinding away that in SD I'm a small fish in a big pond so I traveled a ways to be a big fish in a small pond.

I believe it was not sold because this is a smaller town with lots of future potential. This property is a diamond in the rough but future development plans by the city have a potential to make this a awesome long term gold mine. So in the meantime I plan to rent it out and wait...

I just had one of my offers accepted from a bandit sign call too. They were asking 239k and I offered 175K. Lot is 16,000ft2. Home is 4/2 1600ft2. It needs 40k in repairs and the ARV is 260-275k. This is an upscale neighborhood but I do not have a long buyers list. I have been trying to market it all day today and will keep trying all week. Contract was signed Friday and I have 17 days to pull out. I plan on calling REA and asking them if they have any buyers but any advise on how to find some cash buying flippers would be appreciated!

Thanks,
Thom

Thom,

put it on CL as a "handyman dream house!"; it gets investors attention...

also, you can drive around and look at properties that have been flipped recently or are being rehabbed and get the contact info for the investor

post on IE deals

put up bandit signs looking for buyers instead of sellers...

contact Carol Stinson to see if she has a buyer and you could do a co-wholesale...

good luck!

for the ideas I'll give em a try. I gotta get some interior photos from the agent tomorrow. Then I'm going straight to postlets to create a flyer.

hey everyone i wanted to share whats been going on...the unique property i had under contract above did not comp out well due to the uniqueness of the location (lesson learned),so i had to let it go (exit clause executed).

Ok here are the current numbers for the buy and hold as the rehab is complete (a little more than I expected by 3k). Everything looks great! Property management is in place and is now taking applications for tenants to rent house and studio for $1300 (yes they believe the market rate is higher than what I anticipated).

Purchase price + cc: 66k
repairs: 13k

All in for: 79k

Monthly estimated rent = $1300
insurance =55
taxes =75
PM @8% =104
maintenance =75
mortgage 80k 20yr @ 6% =573
-----
Expected Monthly cash flow = $418

I have a no season cash out refi bank lined up for as soon as it is rented.

private money agreement: 50% equity (after refi) with future 4 year cash out option.

**I have received many calls over the last 6 weeks on my bandit signs that I nailed VERY high to telephone poles but last week an 80 year old landlord called with 20 properties that she wanted to sell!! She told me her and her daughter are tired of managing the properties that they have accumulated (by using heloc and then refi them!) and just want to sell them all! I'm going to meet with them in a couple weekends to look over the numbers of their portfolio. I'll be talking with my bank and seeing what my options are....

Any advise?

This has just really fallen into my lap. They own 5 free and clear and have 15 with mortgages. 18 are rented, they range from 2/1, duplex, 4/3, 3/2, triplex, duplex. I wanted to do 10 deals this year but was not expecting it all at once!! Rents are from $550-1300 a unit.

Thom,

at the Edge 2012 Matt talked about his strategy to buy multiple properties (you can watch it from the IE library); the example he gave us was with 3 properties, but you can use it for as many properties as you like... once you agree with homeowner on price for bulk of properties, you ask homeowner to sell one of the properties for 'pennies' while the price of other properties are bumped up (remember the total $ for all remains the same); you then wholesale the 'bumped up' properties and you keep the one you got almost for free

Val

Hey Val,
thank you for the advice I have seen Matt strategy and from edge 2012 and will keep that in mind on the ones owned free and clear. Here's the updated numbers I found out today:

Total loan amount: 1,165,321
Total monthly rent: 15,924

The 5 that are owned free and clear bring in 3500 monthly rent of the total above.

I found out exactly how much is owed on each one, some are definitely under water but with the way this market is climbing they would not be for too long. I'll look for someone who wants to increase they portfolios to wholesale some of these to. I was thinking of calling all the local PM companies and asking if they have any landlord who wants to increase their portfolio...

Anyone's advice is always welcomed.

Thanks,
Thom