All Forum Posts by: Mark B

Thank you for the great input. I think this is very helpful. I agree that something bigger may be wrong with it, however it is available for an FHA loan and my realtor explained that usually means that it is inhabitable and not in dire need. Would you concur?

I'm going to keep an eye on it and if is still on the market before the investor date, I will get a proper showing.

I like your idea about running my numbers and figuring out my best price based on these. I have been advised to this exit strategy: buy and rehab to a rentable condition. Look for a RTO tenant to hold the property for at least 12 months to avoid short term capital gains.

Thanks!
M

Hi guys,

I'm new to HUD so this may be a bit basic. I found a great rehab opportunity that I want to pursue. The house is a HUD home 3/2 for 35 k. It has been listed for about 5 days. The houses on the block range between 98k and 137k. It needs some work, but just cosmetic (I'll admit I haven't had a showing yet).

My realtor tells me that it is not available to investors until 2/26. Only available to home-owner occupant now. If this lasts till 2/26, how will the seller decide which offer to go with if several investors all submit on 2/26?

Will they go with the first offer? Or could this potentially turn into a bidding war of sorts? Is it possible to submit the offer a day in advance back dated to be the first in line? What other advice can you give me?

Thanks,
Mark

Bummer. No one has contacted me yet about my new service. ;-) I think this ad is not going to get all that many takers. Seems more like a shot in the dark idea, but I will continue to post this for a couple of months to see what happens.

I bought a $300,000 commercial building on REC with 30K down, 30 year amortization with 10 year call, 7%. This was 3 years ago.

I have to admit that I don't even know if my name is on the deed - doubt that it is. I bet this is standard and would doubt if that would make refinancing any more difficult. Any pros know?

I don't know why so many here are worried about this. If I wasn't so professional, I'd say people are getting their panties in a knot. But since I am, I won't.... ;-)

I just posted this ad idea in my local craigslist. I'll let you know if I have any takers and how it goes. I won't give out any legal advice or estimates of value, but I will give out my summation of condition if they ask. I'm sure I'll write up a little service agreement they must sign that removes my liability.

I was thinking this could also be a way to meet out of town HML's too!

I couldn't disagree more. This would be a total a$$hole move. First of all, we don't even know if she is growing legally. To remove liability, just write a registered letter to her telling her to remove the plant form the property immediately or provide proof of medical marijuana approval. Nobody's looking to throw a landlord in jail that handles it this way.

Andy, I agree with Jeff and Jimmy here. Your version sounds too wordy and thought-out. Use Jimmy's, and I'd include the phone number too. It is a risk I'd take to make the deal.

By the way. You are using "your" when it is "you're" and "add" when it is "ad."

Good luck,
M

invmatchmaker,
Can you post those pics of the signs they sent you? Post them here and maybe we'll have some comments based on the sign design, and the location on the corner.

Something is definitely wrong with this picture.

You are echoing my thoughts on this. I find it amazing that you could get a house for 35k in an OO neighborhood. That is unheard of here.

I lean toward 4plexes because of the reasons you stated. But they don't tend to appreciate like a house might.

My answer is that I'd have to see the places and review the neighborhoods. I look for neighborhoods on the way up. And I analyze that block by block. I'd probably go with whichever one had nicer properties on the same street block.

Thanks for the great replies.

Looks like a 5% rate (If I could get it) would save $320.00 per month on my payment as compared to a 7%. I plan on holding this bldg for the long haul.

The seller is not interested in extending the note as he is now 88 years old.

It is nice to learn that I probably wont need to buy down the LTV. I just think that long term, rates are going up and I'd like to get something fixed now that can carry me for the duration while they are so low.

Would my DTI include the rental income? I've read here on BP that most banks use 75% of the rent rates as income. Is that correct?

Why won't banks do a 30 year fixed on a property like this? (Actually the use is office / retail.)

Thanks for all the help.