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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Possible first deal. Asking for opinions please help. Posted by Ernie on May 09, 2003 at 11:03 PM I have been lurking here and on a couple of other forums for awhile and I am now asking for help with my first post. I have read several books and a few courses and have just about enough knowledge to get myself and others in trouble... Here is my situation. I am a 36 yr old retired "public servant" on a medical pension which brings enough cash flow for me to pay for my bills with a little left over. I have two kids and my wife is ready for our third. I recently moved from So. California to No. California in search of a better place to raise my children. I have excellent credit and am getting a HELOC for $50k and have $50k cash to invest. I called two people who were doing REI in my area who had ads in the paper. Both were interested in meeting w/me. I met the first gentleman today and he ran this deal by me. He was going to use a hard money lender because his cash is tied up but is interested in doing the deal w/me because I have cash. The deal is this, he already has a subject to signed up which has not been recorded yet. Here are the numbers. 1st: 120K 2nd: 30K Both notes are held by financial institutions. It has a 4 month old appraisal of 177K in as is condition which is needs paint and clean up. It is in 2 months arrears of less than $2K. I have checked the comps and they are around $200k in good condition. The REI needs 10K out of the deal after we record due to "cash flow problems". He originally wanted to do a L/O where he would get the up front money and we would split on the back end minus his $10k up front. Having this be my first deal I told him that I would rather flip it which he agreed to do. REI has done all DD which I have double checked. He says that he has contacted the 2nd and they are willing to sell for 15K. Does this sound like a doable deal? Or am I being taken because I am a newbie who doesn't have enough experience to know better. The REI seems to be strapped for cash because it is "tied up in other deals" I would appreciate any advice that the more experienced investors can give me and I am sorry for the long first post. Thanks, Ernie Follow Ups: Re: Possible first deal. Asking for opinions please help. Jorge 9:53 AM, 05/10/03 (1) Re: Possible first deal. Asking for opinions please help. Ernie Baxley 11:19 AM, 05/10/03 (0) Deal analysis Ward-CA- 7:58 AM, 05/10/03 (4) Re: Deal analysis Ernie 8:33 AM, 05/10/03 (3) Re: Deal analysis Gary 8:19 PM, 05/15/03 (0) Re: Deal analysis scinv 9:09 PM, 05/10/03 (0) Re: Deal analysis scinv 9:08 PM, 05/10/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : I have been lurking here and on a couple of other forums for awhile and I am now asking for help with my first post. I have read several books and a few courses and have just about enough knowledge to get myself and others in trouble... : Here is my situation. I am a 36 yr old retired "public servant" on a medical pension which brings enough cash flow for me to pay for my bills with a little left over. I have two kids and my wife is ready for our third. I recently moved from So. California to No. California in search of a better place to raise my children. I have excellent credit and am getting a HELOC for $50k and have $50k cash to invest. : I called two people who were doing REI in my area who had ads in the paper. Both were interested in meeting w/me. I met the first gentleman today and he ran this deal by me. He was going to use a hard money lender because his cash is tied up but is interested in doing the deal w/me because I have cash. : The deal is this, he already has a subject to signed up which has not been recorded yet. Here are the numbers. : 1st: 120K : 2nd: 30K : Both notes are held by financial institutions. It has a 4 month old appraisal of 177K in as is condition which is needs paint and clean up. It is in 2 months arrears of less than $2K. I have checked the comps and they are around $200k in good condition. The REI needs 10K out of the deal after we record due to "cash flow problems". He originally wanted to do a L/O where he would get the up front money and we would split on the back end minus his $10k up front. Having this be my first deal I told him that I would rather flip it which he agreed to do. REI has done all DD which I have double checked. He says that he has contacted the 2nd and they are willing to sell for 15K. Does this sound like a doable deal? Or am I being taken because I am a newbie who doesn't have enough experience to know better. The REI seems to be strapped for cash because it is "tied up in other deals" I would appreciate any advice that the more experienced investors can give me and I am sorry for the long first post. : Thanks, : Ernie Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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