Tight Deal In LAX
I have a tight deal across the country and wondering how to work it.
It's in LA. The owner owes $175K. It's appraised at $220K. Monthly payments are $1550. Seems like a good subject to.......what do you guys think? Does anyone know the market rent rates in 90044 for 2bd 1 ba? :-?
Yes I can help you with that. What is the property address and how many bdr/bath's?
What I know though, that's a rough and NOISY neighborhood, situated right beneath the main path in which airplanes are final-descending pretty low towards the major international airport located a mile or two away. One more thing counts to: Do you know what is the condition of the property?
What I may also suggest is to talk to the owner first about an idea of buying the prop subject to? If you don't know that he would sell that way, why bother with checking the rent comps?
The property is 2BD 1 BA. Don't have the exact address.
The owner has updated the property
It sounds like your first RE/subject to deal?
To check the rents in the particular niche market you need the property address or a APN#. To get help you got to be more active in your responses. "Owner has upgraded the property tels me almost nothing as to current condition of the property. [ Edited by 100Units on Date 05/25/2004 ]
Seller has put in new kitchen and bathroom. Do you know what properties are going for over there? :-?
fancyyounginvestor,
In your initial post you sad:
"I have a tight deal across the country and wondering how to work it. "Seems like a good subject to.......what do you guys think? Does anyone know the market rent rates in 90044 for 2bd 1 ba? :-?
I'd like to help you but you are no helping yourself:
Why do you think the deal is tide? What help do you need? If you need comps I sad I can help you with but would need the property address. You responded with: "The property is 2BD 1 BA. Don't have the exact address." Well, you need to tell us a bit more to alow me or anyone else to help you. [ Edited by 100Units on Date 05/26/2004 ]
fancyyounginvestor,
I agree with 100units that in order to get help you need to be specific. Are you protecting the address because you think ioounits or some other investor will somehow steal the deal? I find the biggest mistake that new investors make is that they put the cart before the horse. As 100units has told you, if you don't know if the seller is motivated and open to creative alternatives like subject to or lease options, why bother with a bunch of busy work that won't bring you any closer to a deal.
Here's my two cents. First and foremost be a problem solver. Learn how to initially deal with a lead so that they will give you the indicators as to being motivated, open to creative alternatives, whether they believe in your ability to help them and so on. The biggest mistake I see new investors make is that they place emphasis on trying to do all the due dilligence involved in a deal before they know if there's even a chance it may be the kind of deal they want to pursue. Get to the lead quickly, learn to ask the right questions, become an expert listener, learn to negotiate effectively, get the property under contract the right way, do your due dilligence, and if you made it that far and everything still looks good you will close.
As far as this property, I'm not trying to discourage you. Be aware that the area you are speaking about is not a particularly "nice neighborhood". Check all the data in the area (i.e. crime rate, vacancy rate, etc.) and not just the fact that you may be able to get it a little under market. Remember, there may be a good reason you are able to do that from the other end of the country and an investor from So. Calif. hasen't already snatched it up. Good Luck.
Dave
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