Comments on: How to Tell if Your Deal is Worth It? (Premium)

By: Pat Eickenroth

Pat Eickenroth — Tue, 02 Jun 2009 09:43:22 +0000

That deal above sounded good from the start..but it was just a discounted deal. Based on the cost and expense to maintain the loan plus repairs,maybe a short sale on this property may have worked out better. A deal that started at $135K now is nearly $152K after expenses to first 3 months rent. This deal would have looked better with an offer of around $108K and no more then $ 124K. With the way the market is out there now 30-40% discounts are do able 50% is pushing it on any nice home.
Happy investing!
Pat

By: Richard & Michelle Odessey

Richard & Michelle Odessey — Tue, 02 Jun 2009 01:14:07 +0000

There are several issues you need to be aware of.

1) If you use your IRA, then all proceeds must go back to the IRA. Also, consult an attorney about the proper entity structure so you don’t get in trouble with the IRS.

2) Raw land is a very difficult investment to sell. Since you have a buyer lined up, I would put an option on the property with a small option fee ($100). If the seller agrees, record the option. Then if you buyer goes through with the transaction, you can profit. If not, your only out $100.

By: Jan Procupp

Jan Procupp — Sat, 23 May 2009 03:05:57 +0000

I have the potential to contract on 100 acres of raw land in an area that is close to major roadways and shopping centers including Walmart. The land does not have any buildings but has a foundation from an old farm house. There are electric lines to the property, but the owner is not sure if there is a well or septic system from the old farmhouse. If not, there is no access to public water or sewage at this time. He is selling the property for $139,000 or $1390/acre which is $20,000 less than he advertised it for several months ago. He is selling it for his parents and must sell before he gets transferred at the end of summer, which is why he lowered the price. He is not working with a realtor and does not want to at this time. I am a licensed realtor (which he is aware of), but he is willing to work with me as an investor. The comps I ran showed that nothing of this size has been sold within the last year, but the properties that did sell averaged $5709/acre. I have a potential buyer that is interested in purchasing it to use as a hunting camp, and I also explained the poossiblity that he could sell part of it to developers. I quoted the potential buyer a price of $179,000 and he is aware that it has been dropped by $20,000 because I told him about this before and he had some interest in the property. He now has more interest & plans to check out the area this weekend. If he does not, I am contracting for 60 days to find a buyer and will post it on several investor sites to try to sell it. My problem is I do not have any money to purchase the property, but my self-directed IRA can fund a deposit. Do you have any suggestions or direction on where I could find an investor to fund this? I would also appreciate you opinion on whether this is a good deal or not.

By: Richard & Michelle Odessey

Richard & Michelle Odessey — Sun, 05 Apr 2009 18:18:12 +0000

To make a sound deal for turning over property, the key is to have your buyer lined up with the money to close. Once you have that you can approach a number of lenders who will fund the purchase side of the closing and get reimbursed within a day or two from the buyer closing. We’ll be publishing a list of these sources shortly.

By: Bob Wilson

Bob Wilson — Sat, 04 Apr 2009 19:22:00 +0000

At this time, I I am more interested in trying to turn over property rather than have rental units. I still need some advice on making a sound deal with none of my money tied up. Bob Wilson

By: Richard & Michelle Odessey

Richard & Michelle Odessey — Sat, 28 Mar 2009 22:53:51 +0000

David, Try it now.
It will go to the Deal Evaluation Tool Software & Manual page in the Learning Center.

By: David Lal

David Lal — Mon, 23 Mar 2009 19:46:41 +0000

The link for Deal Evaluation Tool is not working. What is the URL?

By: Richard & Michelle Odessey

Richard & Michelle Odessey — Thu, 19 Mar 2009 19:02:16 +0000

Robert,
A private lender should be a good possibility for this deal. I would make 2 suggestions that would improve your chances of getting the funding:
1) Present yourself as a business as I explain in the “5 Key Secrets to Funding All Your Deals” that you can access on your members page if you haven’t already.
2) Your potential investor will want to see proof that you could successfully refinance the property for $73,000, and in what time frame. If you had written lender approval for the financing, I think loaning the money would be a lot easier decision. In fact, if your investor’s money was only going to be out for 3 months you could offer to pay $5000 which would be an annualized return of almost 36%.

If this is successful, you might even make this your business model for acquiring other property, putting tenants or owner financed buyers in them, and then refinancing out your investor.
Good luck,
Richard

By: Robert March

Robert March — Sun, 15 Mar 2009 16:39:49 +0000

Due to a nasty divorce of twenty years, I lost everything, and I mean literally everything, house, car, credit, health, but am pulling out now. I have good guaranteed income, thanks to uncle Sam, and social security. I just need one investor or angel or whoever to help me. I am an ex licensed real estate agent and i have been an acountant for 35 years, and college accounting instructor.
So I have half a brain and sixteen plus years of education, so what is wrong with this senerio.
I have found a home that fits me well, what I would call a pretty house and needing no repairs. It was at the sheriff’s sale and did not sell. So the owner is the USDA. It appraised at $90000 and it was up for sale at $60000. I applied to the USDA to buy it, but they gave me a hard time about my credit, so because of their rules, forget it, even though there would be no down payment, because I fit into their guidelines, at least for that rule.
Why couldn’t an angle, or other investor?, loan me the cash to make an offer of $56000. This would be a 62 percent loan to value, or $34000 equity position.
If my bid was successful, I would immediately turn around and apply for conventional financing and pull out about $7000 to pay off my bills and get my credit back to where it belongs. I would be glad to give the investor $10000 for borrowing the money for a couple of months. What is wrong with my thinking on this? I have been renting for four years at $500 per month for a 700 sq ft apartment. The house mortgage, taxes and insurance would be the same amt. plus I would have 1500 sq ft and an attached two car garage, and one acre level lot with gazebo and deck, etc. The house has three bedrooms and two baths, and is only a few years old. My phone no is 740452-0734 or I will call you to discuss this, if you want, I have your phone no. Robert March