Dupex and Fourplex under contract in Evansville, IN. Looking to assign them.

Dupex and Fourplex under contract in Evansville, IN. Looking to assign them.

I currently have a duplex and a fourplex under contract in Evansville, IN. I do not know if I'll be able to get financing for them, but they have great cash flow! Over $500/month cashflow between them! I have them under contract at 50% below FMV, and there isn't a lot of work that needs to be done (About $10K between them, (some electrical work) + putting in separate meters.) The duplex is rented out, the fourplex has one vacancy. Even with the utilities paid by the owner and property management costs, the cash flow is still very good.

I have the duplex under contract for 18K and the fourplex for $36K. The problem I'm having with financing is banks don't want to lend under $50K per property! (If anyone has a good bank (not HML) in IN I could go to, please let me know!) I am working with a partner to find buyer's contact info (Got a whole 36 pages of buyers, but have to research their contact info!) to assign each one to and we'll split the profits 50/50.

Here is the info on them.

Duplex:
Debt Coverage Ratio: 3.02
Capitalization Rate 32.9%
Annual Cash Flow $3,959
"Computed Internal
Rate of Return" 62.8858%
Value Per Unit $9,000
Vacancy Rate 6.0000%
Years to Payback Initial 0.91
Gross Rent Multiplier 13.85
NOI $5,921

Fourplex:
Debt Coverage Ratio 1.57
Capitalization Rate 17.1%
Annual Cash Flow $2,247
"Computed Internal
Rate of Return" 13.8559%
Value Per Unit: $9,000
Vacancy Rate 6.0000%
Years to Payback Initial 3.20
Gross Rent Multiplier 17.56
NOI $6,171

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interested

whats the rent per unit? how is the cashflow for the duplex higher than the 4 plex?


Rents

Hi Mark,

I have the actual rental contracts and all the rents are as follows. The properties are very close to one another, but the duplex has bigger units and rents for a little more. The dulex is rented for $700 and $600 (upper unit) and the fourplex has rents of 1 unit at $600 (upper unit), 1 at $450 (back unit) and 2 at $500 (side (currently empty)and front units).

I can provide all documentation with a NCND agreement. Smiling


Contacted over 100 leads

on **** yesterday. We'll see if **** really works or not. Sticking out tongue


Way to go Zion

Nice job locking these properties up, also on providing the numbers for folks to evaluate.

Keep us updated on how **** pans out for you, they seem to be aggressively marketing themselves lately.

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Tammy

way to go, girl! glad you were able to get them under contract. i work with a very good mortgage broker and i can send you her info if you are interested. she is licensed in IN, although she is in Fort Wayne. if you are interested, please PM me and i'll send her info your way. if she can't find a bank for you, she may have some suggestions.

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Something I found out about Leadtackle.com

The messages are only received by the recipients if they know how to find their inbox at the site! That's not very user friendly. It took me a good 5 minutes to figure out how to find mine and I had 4 messages in there, some from months ago! To get to their inbox, a user needs to search for buyers, then click on a profile and hit 'messages' and hit 'send private message'. From there, and that's the only place I've found it, you can see your inbox, outbox and other mail related items. A pretty silly setup if you ask me. Methinks they need to revamp their site some and make it more user friendly!


curious

Just curious why you need an NCND?


NCND

Well, from what I've learned, this is the way to do it. If I was to give info to someone (not anyone in particular) and I give all the info and then an end investor wants to wait until my contract expires to try to get it from under me without the assignment fees, I would not have any recourse. Also, the documents contain private information about the renters (the rental agreements themselves).

Do you think there is a different way I should approach the release of all the particulars and backup documentation? Calling the Academy now. Smiling

Update: After talking to the academy, this is not an unreasonable thing to require, and is actually recommended. Phew, thought maybe I was being overly cautious.


NCND

I've thought about an end investor waiting until the contract expires to buy the property, but I came to the conclusion that the investor would risk another investor buying it before expiration of the contract. A good deal is a good deal. If the investor gets greedy, he may get nothing and lose a potentially good deal to another investor. Ask the academy what your course of action would be if you had an NCND in place, gave all the info to the investor, and he replies with "Oh, I've already seen that deal".


I'll ask them

about that. I'd be interested to know the answer to that myself . But, then they've already passed on it if they've seen it.

Mine were never on the MLS, but I guess there could be someone out there who knows about them.


Bird dogging

I could see the value of a NCND if you were bird dogging, but if you are wholesaling, you have control. In terms of seeing the info and passing, they could say "we're trying to put the financing together" or "we're doing the due diligence now".


TRSD

Do you mean they could say that in response to 'oh I've already seen this'? My response would be why didn't they put them under contract themselves with subject tos? What would keep them from then waiting until after and putting in the same offer the wholesaler has the properties under contract for? The owner's information is public info and anyone can contact the owner direct. They now will know what you got it under contract for and what price the owner will go down to, which they may have not have known before (presuming they really knew about them as they say they did) which is usually the more difficult part of locking up a deal. I guess the buyer could directly ask the seller if he spoke with so and so and he may or may not tell the buyer.

Anyhow, my computer is down AGAIN, I'm using hubby's. Windows 7 ..#@!!*#*$$&$& need I say more. Some WerFault.exe for windows problem reporting, but it keeps happening when I completely disable it. Spent all day trying to figure it out. WHY ME!? AHHHHHH! I need to convert all my business documents to the MAC version of Office and be done with Windows for good!


Tammy

Have you found buyers for these props yet?

I have family up in that area. I could see if anyone might be interested.

Karen

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Tammy,

......PM me if you are still have these available. I have a few questions and would like to further discuss these properties when you have a chance. Thanks Smiling - Joe

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Yes

They are still available.