I am currently looking for REO Managers or people who know them in the Southern California area, to introduce me. I am looking to view these REO packages before they are assigned to a realtor so that I may get an opportunity for first bid.
If you are one or know one please have them give me a call.
Joseph (714) 457-5058
Thanks
That would be called sheriffs sale. Once it becomes an asset of the lender it goes to a diffrent mode. The asset manager for the lender is involved from the start of the forclosure proceedings. When it becomes lender owned but before it is listed there is a lot of work to do and the realtor coordinates it all. When it is ready for sale that realtor under the direction of the lender put the home on the market.
Hey Big Jim,
I am currently working with an REO Manager who is currently getting permission for my model in the first message.
Here's my Deal with the REO Manager:
1) Let me bid on the REO before it is assigned to Realtor
2) AFter I Pay Cash they can give me a no-doc no-fico driven loan so that I may pay my investors back.
3) They Get the loan when I Sell because I will pay closing costs.
OR:
1) Let me bid on the REO before it is assigned to Realtor
2) Flip it to a Wholesale Person (nuevo riche club)
3) Pay my investors back.
Joseph
Foreclosure Boy, now I have no experience with this matter, but getting a no doc, no fico driven loan from a conventional lender seems rather naive.
Also Ohio Realtor, my only experience with a Sheriff's Sale is in reference to a County Tax Foreclosure Sale. I've never heard of a Sheriff's Sale other than that, and I am not sure what you are referring to.
Hey Ryan,
It's just like a hard money loan........
I know it sounds stupid............
But it got him asking Questions and permission to do this..........
He gets to loose an REO and his wife gets the loans........
Get It!!!!!!!
As far as a Sherriff's Sale in California it goes like this.
Buy a note from the Sherriff--Pay full price for note get Deed in 30 Days
Buy it for a deficency then you will have to wait a year for Deed.
As far as County Tax in California- All you are doing is buying the Tax lien and the homeowner has 1 year to pay you back with 10% Intrest.
Joseph
It definitely sounds just like a hard money loan, but HML's usually come with high interest rates and origination fees because of their inherent risk. It seems odd that the bank would give a non-qualifying loan for anything. The loan will not be able to sold on the secondary market, so unless it has a high interest rate it is just not going to be in the lender's best interest to do it.
Now are you dealing with a manager that is over one lenders properties or multiple lenders properties?
In Ohio when you go to forclosure the property is auctioned off to satisfy the judgement "on the courthouse steps" by the sheriff. There will be a price posted that is the minimum bid 2/3 of appraised value but that price is not normally relevant to the the process. The lender has to bid at least the judgement amount because they sued in court for the default amount + court cost+ fees or the home. If you are willing to pay one dollar more than the judgement amount the lender will greatfully not bid over you.
I think Joseph (foreclosure boy) is mixing up the sheriff's sale (REO) and the county's delinquent tax sale. In the first case, all sales are final and in most cases you deposit up to 25% on the spot and you have 24 or 48 hours to pay the entire balance you bid or lose your deposit. In a few cases, you are required to pay right there. If the bank's bid (usually the gross amount owed them) is higher than everyone else. the bank gets it back. Technically, that's when it becomes truly real-estate-owned (REO).
In the second case, the delinquent tax sales, you are buying the "ownership rights" to the property deed in the amount of delinquent county real estate taxes owed on the property. You don't own the property, if the property owner cures the delinquency within the 1 year period, case is closed. You get back the money you paid plus stated interest (10% in your case). If the delinquency is not cured within the 1yr time the property is not automatically yours, you still have to do "due dilligence" before the property can be yours. Most properties in tax default are reclaimed. Not many people would lose $300,000 property over say, $10,000 tax.
Chris
Hey Chris,
You're getting me mixed up with somebody else.
I Currently purchase at the Trustee Sale (All Cash on the Spot) in La and Orange County in California. San Bernadino and Riverside for 4-Plexes only.
I don't waste my time with Tax Auctions.
Been to a few sheriff auctions with no luck.
But Back to my first posting, I AM Looking for REO Managers in So-Cal who are intrested in selling the properties before they are assigned to a realtor.
So if you Know one---Give me a Call (714) 457-5058
Thanks Boss
Joseph
Ohio realtor is close !!
As far as you working directly with an asset manager forget about it !! the only way your going to purchase properties like this is in about 5 years or more when the reo market really hits. If and when it ever hits again in SO Cal the banks will bulk sale properties for the big boys to purchase in blocks of 20 -100. ( this is nothing we are in now )
The Asset Managers only get paid after the close of escrow, They get appox 30% for about 24 months of work... If you think they are going to sell you one property and piss of the relationship with the realtor ,, you are wasting your time !! period !! Even if it was 10 Propertie all cash !!
And from what it looks like you should hire a good So Cal Realtor, whom is honest and whom would tell you the truth....
The truth is my friend ,,, if you are in fact buying multi units from the court steps ,,, you have already lost 25% margin !!
If you wont to make some $$ in the riverside area write me back !!!
hope the truth did not hurt your feeling !!! BC
How's it going in Ohio?
The laws in your state and in mine are completely different that's why I believe we have two different views on the foreclosure process.. You can read the difference here:
http://www.foreclosureuniversity.com/studycenter/foreclosurelaws/
Well as far as it can not be done, mabey not in Ohio but
1) I am currently working with one in the OC and making contacts with a few in LA. One of the Subjects we speak about is Bulk purchasing for which I have a banker that helps me out.
2) They don't give a rats !@#$%% about the realtors, if they piss one off, who cares there are thousands waiting in line that will happily take over where the other left off.
3) I don't know how much they get paid but I do know that in California the manager gets the property approx 6 weeks after Trustee Sale and the faster they get it off their books the better.
4) In Ohio Opening bid is 2/3 of Apprasial Value in California there is no appraisal proccess or Sherriff (See Laws above). Opening Bid is the Loan amount Plus Fees. I do not chase properties unless they have a minimum of $125,000 in equity. So in Fact my LTV can be as low as 40% on up. Ex: Property worth 550,000 Note worth 350,000 Fees 20,000 I purchase the property for 370,000. I know the Value difference in Ohio and California is pretty hefty and it may seem that I am not telling the truth, so go to Realtor.com and check out the values yourself.
5) I am a Realtor
6) Units are the Fastest road to retirement
7) Prices in riverside are dropping like a Rock it's too scary to buy there unless you are getting a 2000 note or earlier or it's units you want to keep.
8) Truth Never hurts Truthful people, it helps us Grow.
Foreclosureboy
Hello Joseph;
I am a beginner investor for real estate. I went couple of sheriff sale but I could not buy anything because of too much bidding happened.
You said “Trustee sale”. What is the difference between Trustee Sale and Sheriff Sale?
How can I find Trustee Sale.
Many Thanks
SAM
Hey Big Sammy,
I live in California and a trustee Sale is when a homeowner quits making payments and goes into Notice of Default for 90 days. Then a Notice of Trustee Sale is posted and the homeowner has 21 days to fix it or it goes
on the Courthouse Steps to a Trustee Sale.
A Sheriff's Sale in California is where property is put up for auction. If you Successfully win with at least 1 dollar over the Note value you get the Grant deed in 30 days. If you win with at least 1 dollar below note value you will have to wait 1 year to get the Deed and then Maybe???
Joseph
OK foreclosureboy,
Fisrt off let me say I believe I can help you with your first request. i have access to asset managers that can sell before realtors get assigned the asset but after the sheriff's sale has taken place (TRUE REO STATUS PROPERTY).
Email me and ill tell you how to do this.
Catch, as always with any unique program. YOU MUST BE PREPARED AND CAPABLE OF BUYING IN BULK
You need to be prepared to come to the table with at least $15M for one deal. You can expect about 15% complete crap properties, 15% HIGH DOLLAR (your gonna be holding them forever properties) and 70% average properties.
If you can do that, and get the money together - lined up before you are given the opportunity to see the portfolios (no earnest $$$ required, just verifiable liquidity), you may be invited to play, provided you pay our fee for the opportunity (typically 4 to 6 points). You can expect to be at, after all fees somewhere around 65% LTV.
Best of luck,