All Forum Posts by: Ryan Landis

@Dakoda Spencer as mentioned a bit earlier, REO does not mean that you have to purchase in cash/etc. Most of the comments in regard to cash often have to do with the condition of the property (i.e. it is not suitable for a conventional loan). Everyone always forgets, but no matter how tight the competition is, you are in the driver's seat as a buyer because you get to decide how you structure your offer. Now, you might not get anything if you aren't trying to make it competitive, but you can DEFINITELY buy at least some REO's utilizing a mortgage and without having to write non-contingent offers (you just possibly might not be as competitive). I also should note that some do require it to be cash and non-contingent. For those deals, be very careful or you might lose your shirt.

Just remember that REO does not mean "free money" for the buyer. You might be better off just negotiating the heck out of a traditional sale if your agent is up to it.

@Scott Kim FHA and VA are not as common in the Bay Area in general, but you do see them if the price point works in the East Bay and South Bay. For that price point, just make sure it is a place you feel comfortable with. Also, it may be an uphill battle when putting in offers just because most of the good stuff will get a conventional or cash offer. Just stay positive throughout the experience and do everything you can to make it as attractive of an offer as possible.

@Matt Homsy I am not an attorney, so take this with a grain of salt, but for most people it is probably less expensive to get an insurance policy to cover yourself (especially for at least the first few). As you do your research, take 10 minutes to call your insurance agent and ask them about an Umbrella Insurance Policy. If nothing else, it might help you save some money on your car insurance.

If you take a look at the threads, you will see there are different trains of though (especially by state). Just as people invest differently across the country, as @Gabe C. mentioned the state requirements are drastically different (~$800 in CA and it is under $100 in a bunch of other states). Where most people mess up the LLC piece is if you do not run the LLC as a business (talk to a lawyer and accountant about that one).

Not saying this is your situation, but for others that read this thread later on, you need to weigh the pros and cons against your net worth and loss potential. Similarly to how you think about improvements to a house and the tradeoffs to rent/value creation down the road, there is a risk/reward you need to balance with the legal piece to this investment vehicle. You can insure/hedge everything you do, but that is going to likely reduce your return (and for some people that is perfectly fine and they sleep better at night).

@Shea Alexander and @Ned Carey are spot on. List price in many markets is an attention grabber. Not sure what types of REO's these are, but just a few years ago I remember HomePath shelling money into the homes before putting them on the market. It was an REO, but it was in move in condition.

@Christopher Yoo welcome! If you have not already try to listen to the podcasts and hopefully you can make it out to one of the local BP Meetups. Having a significant other that "gets" what you are trying to do, and that can add value, is a huge plus!

Full-Service Real Estate Agent

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MinnGo is a team of highly skilled real estate professionals leading the way in how real estate should be practiced. We are looking for someone with a strong hunger for personal and professional growth. If interested, please submit your resume and your 1, 3, and 5-year goals to [email protected]. Candidates who are being considered will be contacted after for an interview.

@Adam Ross come out to @Johnson H. meetup on the 12th in Milpitas if you can. I know there is usually one or two that come by.

@Adam Simons welcome! Make sure to listen to the podcasts on BP if you have not already. If you are a book guy, you can also learn a ton from their books.

Hopefully you make it out to one of the meetups soon.

@Zach Hubert-Allen from what I remember the amount is not refundable. @Mark Pedroza RE trainers is awesome - they should give you the background for what you need to go pass on October 11th!

Good luck to the both of you. Feel free to reach out before/after you pass if you have any questions.

@Chris Thomas @Matt Motil nailed it! Depending on how you want to get involved in RE (i.e. buy and hold vs. flip, etc.) you might be able to make some money quicker rather than later that will help you build up your cash.