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Sam

Need Funding For 4-plex

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Property Type : 2 - 4 Units

City : Marietta

State : Georgia

Zip Code : 30008

County : Cobb

 

 

 

Property Description:

GREAT INVESTMENT PROPERTY 75% 0CCUPIED, PLAN ON LIVING IN THE 4TH ONE. ITS A 2BED 2.5BATH UNIT.

Net Operating Income - $17540.28

Square Footage : 4768

Lot Attributes : Flat

Number Of Units : 4

Over All Property Condition : Excellent

Investment Type : Silent Partner - Rate & Term

Investment Amount Needed: $150,000

 

Surrounding Neighborhood:

CLOSE TO HISTORIC MARIETTA SQUARE PUBLIC TRANSPORTATION SHOPPING, RESTAURANTS AND SCHOOL DISTRICT.

 

 

I NEED TO GET FUNDING WITH A NEGOTIABLE RATE AND TERM AND BUY THE PROPERTY AT A DISCOUNT. I WOULD THEN REFINANCE AFTER A YEAR AND PAY THE INVESTOR OFF WITH A SUBSTANTIAL GAIN. HE/SHE WOULD MAKE MONEY FROM THE INCOME GENERATED IN THE PROPERTY.

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Hi Home Investor,

 

Looking at this deal you have, I take it you are going to occupy one of the units and you are not going to contribute to the rent/NOI, correct?

 

What are the current rate and terms on this property? Have you asked the owner if he/she would consider a subject to or a lease option? How strong is the rental history? What are the rents per unit? What about expenses? Property taxes? Water/Sewer/Garbage? Who pays for this? What are the monthly and yearly expenses? Is there a reserve for contingencies? Can you use the deposits as part of the downpayment? When was the last appraisal? Do you have any recent comps? Is the owner willing to carry?

 

You mentioned that you would pay off the partner when possible. What is your plan 'B' or exit strategy? What if you cant for some unforeseen reason not be able to finish the payoff?

 

I am truly sorry for loading you with all these questions but speaking on behalf of any potential partners out there, I'm sure they would ask you the same questions. I'm a former loan officer and I know that when you apply for an investor loan, you will be thoroughly grilled on the numbers. Don't be discouraged by all this. I just want to help you as best as I can. Due diligence is critical and you'll need more information than what you posted.

 

Be well, good buddy and keep up the good work - your ship will come sailing in soon.

 

Andrew

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Hi Home Investor,

 

Looking at this deal you have, I take it you are going to occupy one of the units and you are not going to contribute to the rent/NOI, correct?

 

What are the current rate and terms on this property? Have you asked the owner if he/she would consider a subject to or a lease option? How strong is the rental history? What are the rents per unit? What about expenses? Property taxes? Water/Sewer/Garbage? Who pays for this? What are the monthly and yearly expenses? Is there a reserve for contingencies? Can you use the deposits as part of the downpayment? When was the last appraisal? Do you have any recent comps? Is the owner willing to carry?

 

You mentioned that you would pay off the partner when possible. What is your plan 'B' or exit strategy? What if you cant for some unforeseen reason not be able to finish the payoff?

 

I am truly sorry for loading you with all these questions but speaking on behalf of any potential partners out there, I'm sure they would ask you the same questions. I'm a former loan officer and I know that when you apply for an investor loan, you will be thoroughly grilled on the numbers. Don't be discouraged by all this. I just want to help you as best as I can. Due diligence is critical and you'll need more information than what you posted.

 

Be well, good buddy and keep up the good work - your ship will come sailing in soon.

 

Andrew

Hello Andrew,

Thank you for your recent post. let me begin by answering the question about the rate & term, Two of the tenants currently have a 1year lease and the 3rd just signed another lease, according to the rent history the tenants have been known to sign another lease. The rent/unit is $695+Deposit, and the monthly expense is $400- this is the money paid to the management company who takes care of the water/ garbage/ sewer. The owner cannot carry a note because she is upside down on the mortgage and it is under a short sale and the bank is willing to sell at a low price. Comps have sold btw $250,000 - $280,000 in the past 6-12months. The property is currently sold for $235,000, but my offer would be $150,000 based on the owners current situation and the fact that its in a short sale, but I need the funding to backup my offer.

like I said I would refinance within a year or two since I would be buying the property with a substantial amount of equity. The Management company is currently looking for a 4th tenant, if it is occupied before then I probably won't need to move so as to contribute to the NOI. One more thing, I would also like to know if you have invested in deals in the past and currently active in doing so.

 

I hope I have answered most or all of your question, Feel free to reply me at any time and I respond very quickly.

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Hello Home Investor,

 

Thanks for the update and further information.

 

I've only gotten back into real estate investing recently. I was a loan officer here in WA state in 2003-2004, then went overseas and returned in March. As far as experience is concerned, I've got one L/O going on on a beautiful 4/2.5 in the area and a potential to do a CA with another investor north of where I'm at.

 

Tomorrow I start a new job as a loan officer in Portland, Or. I'm interested in helping people because that way I also learn and right now I'm anxious to get back in the game and get involved in everyway possible. That is why I was asking all those questions.

 

At this time, I cannot be a partner with you on the property unless there is a way you could use my credit scores, but I have no cash for a down. The banks are going to want a loan on a short sale. I plan to advertise myself soon and will try to get myself in front of as many investors as possible so I can help guys like you out. But I have no crystal ball so I can make any promises.

 

I'm wondering if you could talk to the bank and get them to l/o it to you for a higher price? I would suggest offering them 180 - 200 in exchange for a low downpayment and show them the lease contracts from the tennants to prove the thing will cash flow. They might go for it. If the units are drawing $695/month rent X 4 units = $2780/month - $400 expenses = $2,380/month. Using the 1% rule, if you offered them $200,000 for the property, 1% would be $2,000/month, which would basically be your breakeven point. So this looks like a profitable property, we would just need to get creative on the financing and then present it to the bank and sell them on it. I'm not familiar with short sales other that they take a while to get done.

 

Hope this helps. Keep me posted.

 

Andrew

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Hello Andrew,

Thanks again for your recent reply and I must say you do reply very well. I am still working towards getting funding for the Quad, I recently got in contact with a loan officer to pre-qualify me for an investor loan, I was hoping I get the funding so I won't have to result to getting a loan, but I am still keeping my options open. I am still awaiting a reply from the loan officer, I just want to see how much I could qualify for based on my credit score. If I could get better financing with another good credit score added, I will definitely let you know.

 

An associate of mine says he's willing to make my down payment for me If he gets his deal to go through on a hotel he's trying to get. I just need to get this financing and present my offer to the bank, the Quad pays for itself so they would more than likely accept a reasonable offer.

 

And I would definitely keep you posted on my progress.

 

Sam

 

Hello Home Investor,

 

Thanks for the update and further information.

 

I've only gotten back into real estate investing recently. I was a loan officer here in WA state in 2003-2004, then went overseas and returned in March. As far as experience is concerned, I've got one L/O going on on a beautiful 4/2.5 in the area and a potential to do a CA with another investor north of where I'm at.

 

Tomorrow I start a new job as a loan officer in Portland, Or. I'm interested in helping people because that way I also learn and right now I'm anxious to get back in the game and get involved in everyway possible. That is why I was asking all those questions.

 

At this time, I cannot be a partner with you on the property unless there is a way you could use my credit scores, but I have no cash for a down. The banks are going to want a loan on a short sale. I plan to advertise myself soon and will try to get myself in front of as many investors as possible so I can help guys like you out. But I have no crystal ball so I can make any promises.

 

I'm wondering if you could talk to the bank and get them to l/o it to you for a higher price? I would suggest offering them 180 - 200 in exchange for a low downpayment and show them the lease contracts from the tennants to prove the thing will cash flow. They might go for it. If the units are drawing $695/month rent X 4 units = $2780/month - $400 expenses = $2,380/month. Using the 1% rule, if you offered them $200,000 for the property, 1% would be $2,000/month, which would basically be your breakeven point. So this looks like a profitable property, we would just need to get creative on the financing and then present it to the bank and sell them on it. I'm not familiar with short sales other that they take a while to get done.

 

Hope this helps. Keep me posted.

 

Andrew

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Good work there, Sam. Keep it up and keep us posted. I hope you get this property. Where I'm at, it's hard to find a cashflowing 4 plex so stay on this puppy. You'll get it done!

 

Andrew

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Good work there, Sam. Keep it up and keep us posted. I hope you get this property. Where I'm at, it's hard to find a cashflowing 4 plex so stay on this puppy. You'll get it done!

 

Andrew

Just wanted to keep you posted on my progress. So far I have been working towards getting the funding to buy the property but since it was taking to long to go through, I decided to apply for a loan. I did a prequal but couldn't get the loan cause I have only been self employed for only a year, the requirement is 2yrs to show sufficient tax returns.

 

I am still keeping my options open in coming up with ways to get the financing I need. I am open to any suggestions and do feel free to reply.

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