Real Estate Investor · Glendale, AZ · Member since 2009 · 134 posts · 5 votes
In regards the
1) the mortgage(s) (do you prefer 1 lien or 2)
2) the actual property (age, repair level, location, etc)
3) lenders
4) never listed? dropped off (or expired SS listing)
I know there's not a "perfect" SS, but what does a very good lead look like?
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
16y
Ugly houses that needs lots of repairs.
I had one house where the walls were falling over, and dog crap everywhere, got it real cheap. The appraisors words were "Lets get out of here, this place gives me the creeps." Cha Ching!
I had another house with chemical drums in the backyard, got it real cheap. I have no idea what they were, I just took pictures of them and sent them in. I had an low ball offer accepted, then did the inspection and got another $15K off on the deal. It took about 20 minutes once they saw how bad it was. I'm not joking, the lady goes "please hold.....okay where do I send the approval letter."
Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
16y
Ugly houses that needs lots of repairs.
I had one house where the walls were falling over, and dog crap everywhere, got it real cheap. The appraisors words were "Lets get out of here, this place gives me the creeps." Cha Ching!
I had another house with chemical drums in the backyard, got it real cheap. I have no idea what they were, I just took pictures of them and sent them in. I had an low ball offer accepted, then did the inspection and got another $15K off on the deal. It took about 20 minutes once they saw how bad it was. I'm not joking, the lady goes "please hold.....okay where do I send the approval letter."
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Good to meet you..
Criteria
1) Is the seller alive?
2) Do they owe more on their home then it is worth?
3) Are they wealthy enough to pay the arrears?
4) Have you found the lead before a real estate agent has listed it...
Real Estate Investor · Ocala, FL · Member since 2008 · 742 posts · 463 votes
16y
Here are my replies:
1) I prefer for there to be more than 1 mortgage. (Gives us more to work with, numbers wise.)
2) Property age is not too much of a factor, but I do like fixer uppers. Location is only important as to the need to resell. (High interest areas are best for my needs.)
3) Lenders: Wells Fargo, Citi, Chase, SunTrust, and SLS. Also I kind of like local banks for the 2nd.
4) I like to be direct to the property owner. So, I do not like them to be listed.
I hope this has helped you out. And by the way, you sure do ask some really good questions!
Real Estate Investor · Glendale, AZ · Member since 2009 · 134 posts · 5 votes
16y
i have been focusing on newer pretty houses and have stayed away from older run down houses. Reason: I keep coming back to the idea of, "who is going to want to purchase this property from me and if they are interested they are going to want a big discount".
Is there a certain year "range" that you look for?
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
16y
Im confused... Why are you guys sifting through Short Sales... Ugly are great Pretty houses are great... Go get friggin contracts and stop worry about the type of house...
The guy with the most contracts when.... Shorts Sales are just numbers... Have a lot of numbers...
But if anyone doesnt like a short sale please send them my way I will take all of them I can get...
Specialist · MA · Member since 2009 · 858 posts · 306 votes
16y
Caleb, I find ugly houses give me a better discount too, AND as far as who wants to buy them....INVESTORS!! I have a nice handy dandy list of rehabbers who love fixer uppers. They usually pay cash, fix it, and flip them themselves for even more money than I made. I like it because it's cash, and they like it because it's run down.
I wouldn't shy away from an ugly house. I find perfect houses are harder to get the discount I want on.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
16y
My preference is with pre-screening leads to get a high quality pipeline. I used to take on all short sales, but I have learned over the years to recognize there are some battles not worth fighting.
Although the name of the game is VOLUME, there is also room for qualifying the best leads and throwing away the ones where large discounts are difficult.
I do agree with James' list and Michael's enthusiasm. VOLUME cures all!
Like Justin, I like fixer uppers too. I had a historic 1920's home near Encanto in Phoenix which I got the BPO Agent to lump in comparable sales on 1950's rancher's.
I bought it for $51 a sq ft and flipped it for $106 without even turning one single screw.
Mobile, AL · Member since 2010 · 238 posts · 44 votes
16y
Im just starting to look at short sales. In southern California the MV of the property is substantially less then amount owed, sometimes $150K and more. Are mortgage companies discount those amounts? Even so, I can't buy and make money if the lowest the banks goes is the MV. I quess I am asking how is the offer price arrived at.
Real Estate Investor · Bradenton, FL · Member since 2009 · 99 posts · 42 votes
16y
What do you guys think of high value vs low value shorts? I see a lot of the "gurus" are pushing nowadays towards more prime properties ($600k +, perhaps?) ... bigger deals but lower volume.
Real Estate Investor · Glendale, AZ · Member since 2009 · 134 posts · 5 votes
16y
Nick,
I think the biggest issue with high end homes is "time on market". How long will it take you to sell the property. In AZ we focus on homes between $80k-$225k.