Possible First Deal

Go to the property tomorrow and bring your digital camera. Most of them now have a short movie mode where you can make short movies, download to your computer and upload the large file for free via youtube, as Anita suggested instead of having to pay for: www.yousendit.com (which is cheap and good, too). Reason: look professional, as if you've done this before, you're going to get confused when you start looking at a lot of properties, and the best part is you can use this short movie, upoad to youtube and then you can show potential buyers this video.

Caveat: when making short movies, start and stop (to create separate files) for each property, even if they're both next door. Don't capture the property's address in the video, and don't name the short movie by the property's address. Just use "House 221", "House 222", etc. and start off with a high number - not 1 or you look like a newbie (of course, you're keeping an index). Use a hard money lender to finance the balance, and for that kind of cash flow, the hard money lenders and private money lenders will be happy to help you!

Make sure you visit: www-coastal-funding.com tonight and get your proof of funds letter so you look credible, and credit worthy.

You didn't indicate if you plan on keeping or flipping. If you want to flip, just use a hard money lender like Anita says. If you plan on keeping the property, then you would want to talk him into a wrap around mortgage. See this site for threads re wrap arounds. If he's really motivated, that would be great! Good luck!

Ola everybody,
Vern do what you are doing,I guess you have funds in case of no renters!
My info is not great, On your DEAL!Great job on taking action.

Thanks for your advice,

I was thinking about holding this place since the cash flow is so good. I'm sure I can come up with the extra $500 a month if one unit goes vacant. I am just unsure if I should go the HML way if I can't get financing, how hard would it be to refinance after purchasing?

I did some comps tonight and each unit came out to be around 200k each FMV. The units upgrades are only minimal, like windows for example. I was thinking I could hold it for a while, build some equity and maybe pull some of that equity to update the kitchens and baths then sell. I could also tell the tenants I was planning on this and raise the rent a little bit.

I am interested to figure out why he is selling. I'm hoping he says he just doesn't want to deal with it anymore and not something else.

Also, with condos, who pays for the foundation/roof etc? That comes out of the condo trust fund or something correct? Because I would only be purchasing the inside of each unit right?

p.s. the purchase price is 300k for all 3

I just realized I forgot to include insurance...hmmm how much does insurance usually go for?

Hi Vern,
Congradulations on your possible deal! I'm a newbie to Dean's World (2 wks). I'm curious because we have alot of condos in our area, and they have HOA (Home Owner Association) fees - an additional monthly amount per unit. Is the foundation/roof/grounds/etc. covered in the HOA fees? Best of Luck!

Ask for them to give you a disclosure of the Condo association's declaration of homeowner association rules & regulations; it will tell you exactly what HOA fee covers in that Condominium Association and whether you're allow to rent out you unit to tenants.

Yes the HOA covers the structure/roof/foundation etc.. That is worked into the 1400 in expenses I mentioned above. The 1400 also includes the taxes for the year, as well some extra money for unexpected expenses.

Thanks
Vern