Property in Florida....

[investinAK]

Not sure if anyone on here is in Florida, or invests in Florida...But I have a lead on a house in Jacksonville...Very well under appraisal and a desparate seller...3 bedroom, 2 bath, 2 car garage, 2405 square feet, 1/2 acre, waterfront, 2 docks, seller is offering 0 down, 0 closing, and even cash back at closing...asking $449,000...appraised at $515,000....seller transferred out of area...if you are interested PM me...

-Ryan

[Aldo]

That property sounds like it is what I may be looking for - in three years. I want to begin wintering in FL in '08. Is there a chance that I can write an offer with one contingency being a 2008 closing date? Inquiring minds want to know.

[investinAK]

Aldo-I think you want this house now...You can begin wintering in Florida THIS YEAR!! With instant equity!! Sale of the year in Jacksonville!! Escape those harsh Wisconsin winters and ease your mind AND body in the sanctitude of your very own home in sunny Florida! Hey...in the words of Dan Auito..."convince them, it's what we do!" :SM017: Just sign this dotted line, and you will have your very own slice of paradise!!


Ryan

[REIaddicted]

Aldo-I think you want this house now...You can begin wintering in Florida THIS YEAR!! With instant equity!! Sale of the year in Jacksonville!! Escape those harsh Wisconsin winters and ease your mind AND body in the sanctitude of your very own home in sunny Florida! Hey...in the words of Dan Auito..."convince them, it's what we do!" :SM017: Just sign this dotted line, and you will have your very own slice of paradise!!


Ryan

Just as soon as all my kids get moved out and I will only have an e-mail they can contact me by !!!! ONLY 4 more years..... can we extend that closing date???

Dan has an intrest in Florida,.... DAN, chime in here!

[Dan Auito]

I'm a West Coast guy in Florida but Biker Jim could jump all over this, I'm going to shoot him the thread and see what he thinks!

[Jim FL]

invest inAK and Dan,
Thanks for alerting me to this thread Dan.
I did read what the deal is, and sure, the house sounds nice.
However, take a look at the numbers.
Appraised value is $515k, which I'd bet is an appraisal for a refi, or something else.
The price is $449k, which sure, looks like $50k in equity or so...........BUT, run the numbers......
$449k is actually 87% of the value, almost 88%.
Not a ratio I would like on a house I buy, let alone something priced in the 'upper end' for most areas in Florida.

So, I'd pass on this one.
Remember guys, most upper end homes do sell for significant discounts.
And people who can afford a $500k house generally want something really nice and custom to their wants and needs.
Why buy a 'used house' for almost full price (other than the terms), when a brand new house with your options in it could be had for the same price range?

So, that $50k in equity, is it real, or perceived?
I'd bet the second.........

What kind of monthly payments would be on the note for this purchase also?
Some heavy carrying costs til sold would not make me smile either.

I don't see a deal here, other than some easy terms......probably best suited for an owner occupant, not investor.

Just my two cents, keep the change,
Jim FL

[investinAK]

Appraised value is $515k, which I'd bet is an appraisal for a refi, or something else.
The price is $449k, which sure, looks like $50k in equity or so...........BUT, run the numbers......
$449k is actually 87% of the value, almost 88%.
Not a ratio I would like on a house I buy, let alone something priced in the 'upper end' for most areas in Florida.


Hi Jim! I totally agree with you! After I started thinking about it, just out of curiosity, I ran the numbers to see what the true % was, and I have to admit-even I didn't like it! I have to agree, it would be great for an owner occupant. Thanks for your input!! :)

[Dan Auito]

A voice of experience and insight can often just take the whole picture and put it into three D. Now Ryan it would be up to you to continue to try and figure out how you could make something out of this given these new insights.

Maybe a no cost option for a brief period of time at no cost. Good luck! and thanks for answering up Jim, high end homes ain't no picknik! :SM113:

[elnuk]

So what percentages should we newbies be looking at for investment properties?

[investinAK]

Now Ryan it would be up to you to continue to try and figure out how you could make something out of this given these new insights.

Maybe a no cost option for a brief period of time at no cost. Good luck! and thanks for answering up Jim, high end homes ain't no picknik! :SM113:

That is what I had thought of doing, was to put an option on the home for even asking price, turn around and sell it for a profit to a owner/occupant, all the while giving them some equity in the property, so it is a more desirable home for them to buy. My only concern is, how do I market the property from up here? What about showing the home? I would love to put options on property from afar, only I do not know what to do with them without having to travel....insight anyone? :)

[Dan Auito]

That is what I had thought of doing, was to put an option on the home for even asking price, turn around and sell it for a profit to a owner/occupant, all the while giving them some equity in the property, so it is a more desirable home for them to buy. My only concern is, how do I market the property from up here? What about showing the home? I would love to put options on property from afar, only I do not know what to do with them without having to travel....insight anyone? :)

There lies the crux Ryan, again operating close to home say a 30 mile radius will give you all the ability in the world to actively control and be in tune with the market place that you begin to gain expert knowledge in as time rolls on.

If you can find other local players in those long distance markets and dispatch them onto the deals you find through the net in their area, you might begin to make some long distance bird-dog fee's but trying to do these things on your own from 1000's of miles away is going to be one heck of a challenge.

I hope over time we can build our investor network here to the point that we will have players in every state, and in fact we will be adding a fifty state forum in a few months, maybe I should get that put in place a little sooner than later.

Elnuk, seasoned investors usually won't accept less than a 20% profit after all expenses, many(crusty old pro's) are in it for 40-60% off but they usually have solid time tested systems in place to take advantage of their particular niche investment strategies.

[Jim FL]

So what percentages should we newbies be looking at for investment properties?

elnuk,
While I did show there was very little equity in the scenario posted in this thread, I am really the type of investor who does not like formulas or percentages etc when analyzing deals.

The reason I'd not touch the deal laid out here, is because I know from experience, often times higher dollar homes sell for significant discounts, and sit for longer periods of time on the market.
Carrying costs on a loan for a half mill are not something any investor would enjoy, let alone be able to handle with ease for extended periods.......especially if new.

I can tell you that most houses I do purchase, are encumbered, or purchased at between 60-70% of value, sometimes a little higher, or little lower.
I don't really pay attention to that though, per say.
More the real numbers as I call them, or cash value.
Meaning, no matter how I buy a house, I must be able to resell it right away, for below value, and make a nice cash profit......which to me, is no less than $20k, UNLESS, I can close a deal within DAYS (like 3-10) and make at least $10k.

I look at life this way because I've been thru ups and downs, made a TON of money, LOST a TON of money, made more, and kept moving forward.
I know what it is like to have several hundred thousand in the bank, and a few months later, less than one hundred dollars......not a fun thing.
What I learned from those experiences, and yes, all brought on by bad decisions on my part, is that heaven forbid something goes arry again, I can sell a few houses and generate LARGE amounts of cash and be just fine.

So, rather than look at 'what perecentage' a newbie should shoot for, I'd rather tell you, make sure there is enough room to make what you feel is enough.......and it had better be at the least, $10k in cash right away.
4 figure paydays are nice when you are new, but I prefer a little more 'cushion' in my deals.

Bottom line, you need to KNOW COLD what your market conditions are.
Value of homes, what areas are good, what price range sells the fastest, etc.
This will allow you to recognize a deal.

Heck, I bought a house recently for over 80% of value........BUT, I already had a buyer ready, willing and able.....with CASH who wanted it from me seller financed, at 100% of TODAYS value, and a rather high interest rate.
So, I'll make money, the seller is relieved of the burden of the house, and my buyers are in with no bank hoops of qualifying to jump thru.

See, don't think percentages, just know what you are buying, and buy it right.

Does that make sense at all?

Take care,
Jim FL

[elnuk]

Thanks Jim and Dan,


As always great info. I am starting to understand the depth of this RE thing. There is so much to learn and i think this is the forum in which to do that. :praise: