OfflineHey everyone i think i found a great deal and im working on it right now. just want to see what you guys think about it. i contacted anita about it and she said she would run the numbers so im waiting to hear from her.
just wanted to let you guys know about it and see what everyone thinks!
This is a fourplex with 4-2 bedroom 1 bath apts in a fairly good neighborhood. all 4 are currently rented out at 450 a month. taxes are 1300 and insurance is 800. asking price is 135,000 and he is very VERY motivated cause he just moved 21 hours away. i think i can low ball him to 100,000. i don't have any money or good enough credit or income to get a loan for that much. he is willing to do a loan with option for no more then 1.5 years but he wants a downpayment (which i cannont afford)and he did not specify how much of a down payment
Since he is so motivated i believe i can negotiate with him very well. just don't know what details to offer. any one got any suggestions?? Does this sound like a good deal to you guys?
I was thinking maybe i could talk him into adding the down payment into the final offer at the end of the lease? but with him wanting a down payment do you think i would be able to talk him into giving me a percentage back at the end for my down payment on the loan?
Any help is greatly appreciated. I don't want this one to slip away if it is actually a great deal!!
Thanks
Shaun
Payment on a 100K note at 7% would be ~650 so you could make some decent money on this.
What about utilities? It's fairly typicaly for the owner to pay at least water/trash on a 4-plex.
I would want to take a peek at the owner's tax returns for this property to see who is responsible for what.
Is there a realtor involved?
No realtor involved. FSBO!!! I would say owner prob pays water and trash but i will def ask him and see if i can look at the tax returns...
only down fall on any of this is he is a long way away from this property so talking in person is almost out of the question right now!!
Definitely look into the water and trash. It should be about "another property tax payment" a month... 100-200 I would guess.
With no realtor involved.... you REALLY need to verify everything.
soo i should just basically ask to see his tax records on this property?? Who pays what?
any ideas on what i should off as far as total amount and how to get out of down payment? closing costs and so on??
Thanks for the help so far!!
Looks good even if you factor in water and trash. When looking at utilities see if there are 4 of everything, 4 wtr htrs, 4 gas meter, 4 elec meter, etc...it makes life much easier if you want the tenents to pay there own utilities. Are you going to manage it yourself? If not don't forget to factor in that too (8-10%). Also, ask the owner to show you maintainance records from prior years (via fax if you can't see him) and factor that into your numbers. Good luck!
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
Found out that the owner pays water and for a light that is outside the building and that is it. he says water is about 250 a month cause each unit has a washer and dryer hookup. he said what he planned on doin is raising the rent to 500 a month or making them pay for all utilities. so far sounds like an amazing deal with a lot of profit to be made. just hope i can get an offer together quick enough before someone else jumps on it!!!
You first need to check with the title company or with an attorney to make sure the owners owns the property free and clear. Make sure there's no other liens on the property, second mortgage or third mortgage especially given the fact that your going into this without a realtor. Sound like a good deal, but you still gotta do your homework. Good luck!
Just got back from looking at the property and it is a very nice completly remodled 4 unit apartment!!! one of the units is empty but he said someone was coming tonight to look at it and he guarantees it will be rented out by the time i would take over the property.
only thing that scares me is it is right on the border line of a high crime neighborhood!! but if it has the potential to be a high positive cash flow investment i think it would be worth it!
just need to finish doin my h/w and get ahold of the attorney tomorrow!!
any opinions would be greatly appreciated!!
Thanks
Shaun
do you have any hard money people you can talk to. You have some cash flow and it sounds good, but the crime area would raise a concern. do you know anything about the tenants? Are they on assistance?? How do the houses look around this property?.....Jan
ALWAYS WALK IN THE SUN
Good questions there!!! never thought about the tenants being on assistance!! Houses look just as good as this one and there is a new HUGE highschool being built across the street!! and i mean right across the street. I know a local cop there and he said the neighborhood is not that bad there!! I can get my dad involved if i need a down payment but would rather do it on my own!!
Well i just emailed the guy my offer!! we will see what happens... hopefully i will hear something from him tonight...
so i offered him 103,900 and he counter offered to 115,000 so i offered 105,000 and he accepted!!! came across hard money so im buying it out right!! im very excited right now!!! first deal check off list!!
At first it sounded like you were thinking a lease with option to purchase, but it seems that your final situation is a better one. That is the kind of seller to do business with: Motivated! Like "Captain Kirk" says in his TV ads, "Now that's negotiating!" I recommend that you work on drawing up a tailor-made lease agreement for the tenants, along with the various forms for notices, and make sure it is in conformance with your state's landlord-tenant laws. Many landlords try to wing it, and they usually get into trouble eventually. Dean's book has a very good section on managing tenants.
Keep us apprised of how things go.
cactusbob
Great job! Now go take a look at this post and see if you can't get Dean to partner with you on the next one!
http://www.deangraziosi.com/node/5547
congrats, tennball81. sounds like you closed an amazing deal.
Is your hard money lender lending you the full $105,000? what is your mid-long term strategy with this property?
Nick Walters
Walters Property Investment Group, LLC
Is your hard money lender lending you the full $105,000? what is your mid-long term strategy with this property?
These are great questions.. please do answer. Hard money is typically a short term solution since the terms are not great.
Way to go and get that first deal!!! What are the terms of your HML?
Don't Wish the Past, Create the Future! - DH
HML is my dad!!! so yes i got the full amount!! My goal with this property is to just keep it right now. It is fully rented and bringing in good money. Then when the market swings back up (hopefully) sell them for a profit. I can't wait to get an appraisal on it. I think i have some good equity all ready. If that is the case i will refi them and pull all my equity which will give me some good cash to move on to some other deals!!
Check out my other post about my next deal!! Found 4 more possible rentals!!
You are on a roll! Congratulations!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I am so proud and happy for you. I read this at the perfect time. I just saw a sign yesterday for a 4 plex For Sale. I called the phone number today and I am waiting for the gentleman to call me back. Your thread gives me some information and ammunition to handle myself. This is all new to me and I am a little nervous but your success gives me inspiration. Great job and thank you for sharing. Is this the first deal you have ever done?
Yes this was actually my first deal!!! My advice is just do your homework on the property before you call that way you know a little bit about the property and you will know what questions to ask!! Just jump right in and don't be afraid and remember all they can say is no so don't be afraid to ask!!
Thanks
Shaun
You're cookin now! Hopefully you have a few exit strategies worked out already so you can make your cashola and be on your way to makin millions! ;D
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
I spoke to the friend of the owner of the 4plex I was looking into today. Not sure if this is a good deal or not and if I should pursue it. So the owner is asking for 470k. Don't know how accurate Zillow.com is but it Zestimated the property at $344,500. Each unit is a 2 bdrm 1 bath with washer and dryer. They are all occupied and renting for $750. Should I even try to negotiate the price and financing for it. This property was Zestimated at almost 600k in 2007. What do you think? The taxes for this property are $2446. I still have to ask about the utilities though but I was a little thrown back with the asking price. Does it have potential or not? Anybody's opinion or wisdom would be greatly appreciated.
I think that is a lot of money for a duplex that is only bringing an income in of 1500/mon. Even if you get it for 340,000 your payment is still going to be around 2,300. I would find out all the details but def don't get attatched to this one. I think your going to have to move on to the next deal.
Also I hope I didn't sound discouraging in that post!! If you could put a huge downpayment on it where your tenants are paying your bills and then in 2 years it goes back up to 600k then it would prob be worth it. You could take that equity and put it in to a few other properties.
Hope this helps!!
Thanks,
Shaun
I think he said a 4plex. So rents would be $3000. Am new so am also wondering how
the # should work.
"God gives us gifts, warped up in problems"
Yes he did say a 4plex!!! lol sorry Get all the numbers together and post back so we can see your exact profit. Ask him about insurance and utilities. Even ask about his maint history. Alot of landlords keep a spreadsheet of this stuff and can just email you over there whole spreadsheet of expenses for lastyear. Just post all your numbers and we can help you out so you can see your exact profit.
Are you goin to get a loan for this or do lease option or owner finance? How much are you going to have to put down if any hopefully!!
Great job - great excitement and enthusiam shared - WHICH IS CONTAGIOUS!
Even though you didn't want to use your dad - you got it done with his help which should propel down the road to more and more success!
GREAT JOB - keep up the great work!
Mike
"Make it an AWESOME day! (Who else is going to do it for you?)" - Mike Spillman
"As long as there is breath there is hope!" - Mike Spillman
Hey thanks for your advice. Oh and by the way I am a LADY.....LOL! Well I haven't looked into it anymore because I am currently working on another deal right now. I will start my own thread on it so you can check it out. As for the 4plex. I kind of thought it was a little high but the property looks pretty nice. I still haven't drove by and looked at it because I had some family issues I had to attend to this week. I will have free time Friday so I will go check it out. I will look at it and see if I like it and then think about the possibilities. I would attempt to owner finance it if I decide to pursue this property. Don't have the means to finance it myself or put a down payment down. I will keep you posted. Thanks again.
Monica
lol I'm sorry!!! I have no idea why I put He???? Yes good luck with that property and let us know how things go!!
shaun