Posted by Mister Rodgers on May 29, 1999 at 20:01:33:
I know, I know, I know. I know skinny every day that I look in the mirror.
It’s a skinny deal.
Ya’ll quit laughin’. I’m gettin’ a complex.
I just wanted to know what you would do.
:>)
LOL
Thanks Phil for the input.
gary
Will you do property management? - Posted by gwtx
Posted by gwtx on May 29, 1999 at 15:47:46:
I sent postcard to out-of-state owner.
1234 sq.ft. 3-2-2 built in '85.
loan balance is $64,000
re-fi’ed in’91 @ 9%. PITI is $765
It is a rental @ $775 rent.
They have 4 more years to fully depreciate.
recent comps is @ $63,822
Due 1980’s Texas r.e. downturns this house has lost value, and, also because owners in this area bought at too high price.
I wanted to l/o this house. But, because of PITI and no equity I declined to the owner.
Owner says they appreciate the work in finding the comps and letting them know where they stand. So he ask, “would I be interested in doing the property management since this is a rental. That they are tired of driving from Colorado to Texas once a year to check up on house.”
Does anyone on the “mentor panel” have any suggestions on how to structure a different offer to this owner?
I’m not sure I want to get into property mgmnt. I don’t see how he can afford it anyway w/ his current monthly pymnt.
Thanks
gary
WAIT! WAIT! PHIL’S RIGHT… I DIDN’T SEE THE FINE PRINT! - Posted by Bill Gatten
Posted by Bill Gatten on May 29, 1999 at 23:02:44:
Keep the first message and do what it says, but have the seller bring at least $5,000 to $10,000 with an agreement to pay for any repairs or refurbishment. This will obviously cost him a lot less than standard closing costs on a a straight sale (7.5% plus a $10,000 price reduction); and it’ll bail him out of a bad situation.
Bill
Re: Who will do property management? - Posted by Bill Gatten
Posted by Bill Gatten on May 29, 1999 at 22:53:19:
The following advice is best for the current owner, but if he doesn’t know about it, you can wedge yourself in between the slices and do it yourself. If you don’t want it, I’ll take it.
Acquire the property on a 3rd Party Land Trust Conveyance, and let a resident beneficiary pay all the payments and costs, including handling all “management” responsiblities and expenses in exchange for the tax write-off and a percentage (perhaps) of the Future Appreciation, equity build-up (loan’s principal reduction) and all other incidents and benefits of homeownership.
I can own property in Hawaii or Idaho (or Texas) this way, while living in California and never have to worry about it, as long as the payments are coming in, and as long as I have someone there who can drive by it once a year or so to assure than it hasn’t fallen down. If a problem pops up, I can evict quickly (through a local eviction service) and replace the co-beneficiary with another, who will come in with another co-beneficiary contribution… which sum should be more than sufficient to cover any costs of eviction, advertisment, etc., and give me some spending cash.
Bill
Re: Will you do property management? - Posted by phil fernandez
Posted by phil fernandez on May 29, 1999 at 19:45:26:
Gary,
No deal here. Move on. How did you get comps of $63,822. No way you can fine tune market comparables to that fine line. The real estate market has too many variables. If the loan balance is $64,000 and the property is worth $64,000 where’s your profit.
Don’t spend your precious time managing this property when you can be out there finding real deals. Remember you make your profit when buying.
The only way I would do this deal is if the sellers are willing to bring a check for $20,000 to the closing table so that I could buy their property at about $44,000.
Re: Will you do property management? - Posted by FJW
Posted by FJW on May 29, 1999 at 19:40:34:
Call Mr. Gatten to set up a PACTrust. Cal Equity Banner at top of board.
FJW