This apartment building is now available
Current rents are $400/mo. Tenant pays all utilities except water/trash.
This is a great building and a great investment.
Click here to see more details
I don’t understand why sellers-of-real-estate offering financing to buyers should be exempt from usury regulations. (I know this is true in NY state). It benefits the sellers, but why would this be in the states’ best interest? Is it perhaps because it facilitates the primary mortgage market without involving institutional lenders? Still, it seems downright shady to me.
The Housing Mortgage Market Review came out this month – you can see the original at http://www.pmi-us.com/PDF/may_10_pmi_hammr.html
Home sales rose in March. The main reasons given are the homebuyer tax credit, rebound from the bad weather during the winter months and a better outlook for jobs and demographics.
I expect that April sales looked good as well, though I am doubtful that this will continue into May. Since the homebuyer tax credit ended in April, I expect that May sales will have fallen. I also think that the continued turmoil in Europe is going to have an affect in the overall economy here and that will affect house sales.
It is also expected that house prices and interest rates will remain unchanged through this year.
The chart that I found most interesting showed the percentage of mortgages that are ‘seriously delinquent’ (pg 5). The trendlines on this chart show that more and more mortgages are headed into foreclosure – a trend which will definately hold down the housing prices in the future.
DeanDretske.com – Case studies of 2 sellers who are motivated to sell their houses. Can we help them out?
DeanDretske.com – In this video, I explain what a ‘closing’ is, the major players involved and some different types of closings. This video came about because I had to do some explaining about how a double closing should work – I thought that it would be useful to share the concepts to a wider audience.
Lot of updates, remodeled kitchen, Newer roof, good paint and carpet, replaced hot water tank. Corner lot. Good investment property – Rent Range: $595 – $695.
This is a short sale flip – the short sale is approved, we will close on it before we sell it to you!
Nearby comparables sold for over $40,000. This is a great opportunity to invest in a great cash flow with equity.
For more information, click here
Available Properties was updated – check out the new property that is available!
Watch the replay now at http://bit.ly/VpQv5
Is the competition among real estate investors getting intense in your city? Do you wish there was a way to reduce the competition, and increase the profits per deal?
There is a way. I’ve found America’s foremost expert on multi-family real estate investing, without dealing with tenants. His name is David Lindahl.
Up until now, the problem has been that everyone wanted the profits that apartment buildings could create, but nobody wanted to deal with tenants.
Dave Lindahl has “cracked the code” on getting apartment-sized profits, without the tenant headaches. David currently owns over 7,020 units around these United States, and he hasn’t spoken to a tenant in over 6 years!
Dave is going to be my special guest on Thursday July 23rd for a special, invitation-only teleseminar. He has agreed to share with us the secrets that have made him wealthy, starting from scratch. Secrets like:
• How to buy apartments with no money down;
• How to afford property managers, even for small properties;
• How to profit in the current “Mortgage Meltdown Era”;
• What’s the truth about tough neighborhoods, and dealing with tenants that do drugs or belong to gangs;
• The 4 Market Cycles: Learn how to easily know what stage of the market cycle you’re in at any time, in any area, for any type of real estate.
In every city in America there are apartment buildings. That wouldn’t be the case if all those owners were losing their shirts. While failed landlords like to whine in public, the rich apartment investors quietly count their cash. Dave Lindahl is going to reveal the other side of real estate investing…the hands-off, system-based, high cash flow side.
The fact is that you make your money when you buy (you realize that money when you sell). If you buy it for too much, then you will lose money – it is a simple as that.
So what is the right price? For rehabbing, there are several formulas out there – I like the following:
Max Offer = ARV – Repair cost – Holding Cost – Buy/Sell Costs – Desired Profit
This can also be expressed as
Max Offer = ARV x Z% – Repairs
But I would only use this short version when I am very comfortable with how long my rehabs take and the amount of time my end product is on the market. The difference between 100% and Z% accounts for the Holding Cost, Buy/Sell Costs and the Desired Profit, so you need to be very comfortable with the estimates of these Costs before you can use this as a percentage.
After Repair Value (ARV) is your expectation of the amount for which you will be able to sell your end product in a ‘short’ time. For single family houses, this is usually found by finding comparable properties nearby that sold recently and estimating your end product value based on this information. Remember that your end product needs to be either ‘a better product for the same price’ or ‘a similar product for less’ in order to get sold quickly. In general, I would like to see the 5 closest comparable houses (up to 1 mile away) that sold within the last 6 months. I look at the features of these houses to price my end product house.
Repair Cost is an estimate of how much it will cost to change the condition of the house today to become the desired end product house. Will you upgrade the property to low end, moderate, or luxury condition? Are you just going to clean up the property, or are you going to gut it and start over (or somewhere in between). What does it take to get permits or zoning changes in your area? Who will be doing the work? All of these decisions need to be answered to come up with a good estimate of the repair costs.
Holding Cost is an estimate of how much it will cost you during the entire time you own the house. I usually calculate my monthly cost and multiply it by the number of months I expect to own the house. This includes payments on mortgage(s), utilities, insurance, property taxes, etc. The number of months is determined by the scope of the repair work and how that work is being accomplished (are you swinging the hammer or contracting the work?)
Buy / Sell Cost is the amount that you will spend for all of the process of buying and selling the property. When you buy, this includes the escrow fee, the loan origination or points for your loan, inspection fees, title insurance or fees, taxes, etc. When you sell, many of these same fees may apply plus you may need to pay commissions.
Desired Profit is what you would like to earn from this flip. You need to decide this number and then compare the actual profit after completion – that is the only way to improve your flipping business. A couple things to consider when you determine this number:
Max Offer is the resulting number. This is the maximum value that you can pay and still make your desired profit. If you pay more, you will make less!
This is, of course, a cash offer on the property. If you got good terms, you could pay more if your exit strategy gave you additional profit because of these terms. For example, if I can get seller financing for 2% less than any of my other sources, then my holding costs will be less. I may then be able to sell the end product with seller financing and make some extra profit on the interest spread (if I charge 8% to my buyer and the seller charged me 4%, then I make 4% each month of payments). In this example, I could afford to pay more for the house originally and still make my Desired Profit.
Also, this is a formula for rehabbing. If your goal for the property is a long term hold, then you need to look more to the long term Return On Investment (ROI). But that is a subject for a different post.
