Investment Properties F/S

[MiDiablo]

I didn't put this in F/S cuz it's nothing F/S for "Ford Tech" peeps. It's an off-topic gimmick, that I posted over on TF's forums. Just in case in the event any of you are seeking investment properties to add to your investment portfolios of course ;)

Inve$tment Properties - Foreclosures, Short Sales, Etc. - Tampa Forums (http://www.tampaforums.com/forums/housing-roommates-fs/inve-tment-properties-foreclosures-short-sales-etc-321922/#post3673837)

-Jo$h

[ShakinIt]

Seems like a pretty good deal.....if only I wasn't broke as a joke......

You've got some properties in da hood there though!

[byondevl]

They dont call i tthe hood....they call it "up and coming"

[MiDiablo]

Haha, no doubt. The majority of these properties, to be bought at such a low price, are in less-than-favorable markets (based on move-in). However, they're fine for renting and flipping.

Obviously, we do our best to stay out of known "war zones."

[GNs-r-slow]

I have never bought or sold investment properties only personall owned/lived in property. Who comes up with the appraised resale values???

[Stangonline]

An appraiser hired by your mortgage broker :) Kinda a conflict, I'd say.

[MiDiablo]

Appraiser's cannot base their values on anything given/asked by the Mortgage Broker. It's against the law, and against the USPAP Code of Ethics as well. Appraiser's base their values off of other comparables in the area (within 1 mile or less, depending on Lender), depreciation in the area, declining or inclining market values, and overall condition of the home.

Our After-Rehab Value (ARV) Appraisal Amounts are a general estimate that has been reached by our Appraiser and our Real Estate Broker in our office. Our Appraisers will make reccomendations as to what would need to be done in order for the home to appraise into that value range (usually giving us a $10k-$20k window). Then our Broker makes the decision on how much we'd actually reccomend our Investors spend on the rehab by sending out our General Contractor to get an Estimate of Rehab. When that figure comes back, my Broker computes an "actual" ARV based on the information provided him by the G/C and the Appraiser.

Our company is fairly conservative with our ARV's. We know that the homes won't necessarily sell for that in today's declining market/economy. So when educating our Investors on homes, we make them understand that an ARV isn't to be perceived as an "actual" market value; instead we use a formula based off of 80% of ARV to give the actual market value. For instance:

Purchase Price: $39k
Rehab Costs: $11k
ARV: $100k

Total Investment: $50k
80% ARV: $80k
Est. Gross Profit: $30k
Rate of Return: 60%

FWIW - We never have problems getting at least 90-95% of the ARV in which we list on our properties from the Appraiser; so long as the rehab work is done to par/quality, and as outlined by our General Contractor.

[GNs-r-slow]

2006 E. Hanna Avenue
Tampa, FL, 33610
6/2 – Block – 1,872s/f
Sitting on ½ Acre of land
22nd Street / Close to I-4 and I-275
$102,000 Rehab: $25k ARV: $195

Not sure if you or appraisers have ever seen this area, this is REAL hard to believe. Unless when your rehabin you find $100,000 of crack money in the walls or buried in the yard

[MiDiablo]

Tommy, I've personally seen each and every house we have; toured the area(s); called "For Rent" signs to gather rental income for the area, etc, etc. That's my job, to do my due-diligence in order to provide the utmost information for/to my Investor(s).

The home is a SIX BEDROOM with almost 1,900 square feet of living space. PLUS it's sitting on a half-acre lot. It will appraise out at $190-$200k no problem. Our appraisers will go out as far as 1 mile for comparables, if need be. There are comparables within a half mile radius of the property that have just been sold within the past 6 months (or less) for $160k-$260k; none of which have as much square footage, rooms, or lot size as our home.

I think the problem most "home owners" have with Investment Properties - is getting out of the mindset of being a "home owner" and into that of an "Investor" - whereas a home owner is going to consider whether or not THEY would live there, and an Investor simply needs to know the numerical values associated with his profit margin(s) and/or cash flow opportunities. This home, with Section 8 rents, will bring a considerable amount of positive cash flow. Section 8's approval is $375/month/room. Six bedrooms @ $375/each = $2250! Granted, it'll never rent for THAT much money - but this is still a solid investment opportunity.

[smokeshow]

I agree... The intial thought tends to be, will I live in it if I can not rent/sell this house... most "flippers" get over that after that check comes in... LOL...

[GNs-r-slow]

I think the problem most "home owners" have with Investment Properties - is getting out of the mindset of being a "home owner" and into that of an "Investor

That makes alot of sense.


I've personally seen each and every house we have; toured the area(s); called "For Rent" signs to gather rental income for the area, etc, etc

Last ?, and quit jerkin your chain :lol:. Have you been there after dark?:-o
One bedroom for the renter/owner, Five others for property security guards...

[MiDiablo]

/\ :lol: :lmao:

NO - I have NOT been there after "dark" - however, I've been told the sun sets a bit early there :dunno: Not sure what that meant :dunno:

The lady that I've got that wants to buy that home, she's "From the Islands mon, and I just want a beeeeg house to lib in." I thought, "Yeah, right, and you're going to have Bob Marley parties and make tons of cash that's untraceable, right?!" :crack:

[GNs-r-slow]

Some of my best type of clients, just use whole bottle of sanitizer after counting the large sum of cash :D

[MiDiablo]

TTT... If anyone is interested in getting into Real Estate Investing - I send out an email each week when we get our new properties released for investors to take a look at them and see if they'd like to see a property that we've got. I send it in Adobe or Word to the email of your choice ;) So drop me a line with your email address if you're interested in something like this!! :D

We have a few Pasco/Polk homes available right now for sale too...

[95coBraSVT]

If only my credit were good enough to do that....I would LOVE to get into it........I just can't right now....DAMN IT!

[MiDiablo]

Ca$h doesn't require credit ;)

LOL. We do offer Hard Money Financing for borrowers with credit over 600 mid-range. It's just not cheap :roll:

[95coBraSVT]

Trust me....My credit is worse than that right now....I had a period of unemployment for a while. That combined with a car payment and opening a business ruined me for the next 10 years or so I'm sure.

I have no cash....If I did, I would have spent it on my car already! LOL

[MiDiablo]

No Cash, No Credit = NO WORKY!

[95coBraSVT]

[quote=95coBraSVT;5402312]If only my credit were good enough to do that....quote]:lol: :lol: Yep....I've spoken to lenders who claim to be able to help anyone, and even they shake their heads at me. :oops: