All Forum Posts by: Account Closed

When getting a property under contract that you intend to wholesale, do you arrange to go look at the house a 2nd time with your buyer, or just tell them the address?

Lets say you can purchase property at a "nice" discount under retail value, as in 20-40% under market value...simply being in the right place at the right time. Ok, its a bargain. Now, if you intend to lease this property out, and "wait out the storm", then investors who are doing this with intention of selling later, obviously have are betting that property values stabilize at some point and head north again, correct? There are also tax advantages to this type of strategy, compared to flipping.

Im currently working on my first short sale, but was curious what happens to the mortgage insurance on a loan that goes through a short sale? I intend to get something in writing from the bank that releases the homeowner from any deficiency. However, does the bank then file a claim with the insurance?

Just a quick update. I finally got all the paperwork back from the seller and as soon as BofA gets me in their system, I will be working this short sale. Now I dont want to get too excited yet, I still have to find a buyer but also get more short sales line up to work.

In addition to flipping, I am seriously considering adding some rentals to my strategy. Im now dealing with a short sale that I have been planning to flip. However, if the owners flake out on me and dont complete the paperwork, then I might just buy it myself directly from the bank to use as a rental. The property should lease quickly and stay rented based on the area. Its a bit out of my area however, but it is shaping up to be a good deal either way.

My strategy for rentals is to simply buy houses at a discount that will cash flow, hold them for a few years, then sell them.

Yes, I see that logic. I think I will start doing this as well, there are too many potential deals out there to mess with un-cooperative sellers.

for those of you doing short sales, how many sellers start out being very cooperative, then just up and quit you, and dont bother to complete the required paperwork? Lets say you have the following after initial contact with the seller.
- power of attny, notarized
- warranty deed, notarized
- signed sales contract

Now, supposing the sellers just give up, move out and refuse to complete the rest of the required paper work. I would think my best option would to just simply move on to the next deal and not bother pursuing the deal any longer if the sellers no longer wish to cooperate. If I still want the property, I could jsut wait until the bank gets it, but I dont think I could use transactional funding the same way, or at all, or could I. Just a thought that got me to wondering about how to keep my options open.

comps vary quite a bit, from 105--179K
repairs somewhere around 7K
I think it should sell quick at 130-135K
"quick" being < 60 days
My first offer Im thinking is about 50K


There is a very similar home just around the corner that has been on the market since june (going on 120 days) priced near its county tax value, but it has new paint, tile however is a bit smaller.

Offer based on 65% of low comp minus tax lien. The other two liens I hope to get reduced a minimal figure.

sound ok?

My exit strategy is a short sale flip. I think the house *should* sell quickly, if for no other reason than the high demand school nearby. When i heard the mortgage was BoA/countrywide, I cringed and almost didnt take on this property. However, I thought that if nothing else it would be a good learning experience.