All Forum Posts by: Account Closed

House is 3/2/2 in a high demand school district. Ive got it under contract and have started the owners doing short sale paperwork
needs minor repairs including fence and sprinkler system, carpet and paint.

Seller only owes $120K but has 3 leins, see below
comps vary by wide margin - 105K - 179K or more
only 2 or 3 foreclosures within 2 miles
tax lien of $9K
child support lien $3K
financial name lien (another bank) $5K

Yes, that is good news, even though Im posting this reply 4 months after the initial post. Im working one now that is a BofA / Countrywide mortgage.
Hopefully, things are loosening up a bit by now. I wont hold my breath though.

motiv8td - that is Excellent!
Do you know any reason why this would not work in Texas?

If you know going in that the time on market could be as long as 4 months before you get a buyer, what are the odds that the bank could come back with an approval letter and want you to close before you have a buyer? This is in regards to short sale flips on property that might be on the market longer than others.

motiv8ted - I will be contacting the owner again to ask them a few more things. Either way, I would plan on putting the contract in place with an option (so I can find a buyer). I do need to do some more DD on the comps. However, here are some numbers Im using so far.

selling price 138000
listing fee (3%) -4140
purchase price -105000
closing costs B-C -2100
closing cost A-B -1380
A-B funding (2%) -2760 (transactional lender)
=====================
net 22,620

I thought I would bump this thread again. Are short sale flips coming under pressure from banks?

see this
http://activerain.com/blogsview/1106766/short-sale-flips-title-insurance-prohibited

3/2/2 in nice neighborhood.
Owner wants to sell fast and move, not keep the property
Owner is only 30 days behind and owes about 135K, including taxes
county appraisal is about 145K or so
comps in area run about 155K (need more comps however)
owner has indicated he intends to file chap 7

My analysis:
since owner needs to move, loan mod is not an option
not enough equity for a wholesale deal
short sale might be workable in a few more weeks when owners is 60 days behind.
My offer price to the bank would be around 118K, depending on the BPO

If owners does file chap 7 before being 60 days behind, then that puts off a short sale until the owner comes out of bankruptcy doesn't it? So then, how would I then get an opportunity to do a short sale via the owner, before the bank gets it? Or maybe just let the bank take it, then make an offer to the bank. However, then we are just simply taking about buying REO and Im sure there are deals out there, but its my opinion that the best deals are had when dealing direct with the home owners and not with banks and REO's.

comments and opinions welcomed please.

Im doing my research into the commercial side of things, and the things I list below are my concerns that kind of make me scared to make a move at the moment.

(1) Interest rates could shoot up, and property values go down.
(2) Increasing government regulation on how much profit I can make from each property I lease or rent
(3) Increasing taxes of some sort or reduced deductions or depreciation limits, which futher hit the bottom line.

In other words, buy and hold/lease is looking scary vs buy and flip/wholesale.


Someone care to tell me none of the above are things to keep me from buying commercial property?

Texaplex!
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Is is it just me or is interest in commercial property investing picking up a bit more and is the residential market starting to "stabilize"? Reason I ask, is that ive heard several investors in my area and REIO group have started talking more about commercial property.