All Forum Posts by: BJ Shagena

Originally posted by @Robert Jamerson:

@BJ Shagena, I like this idea, could you explain a little more what you mean by "deficient amount"?
How does someone that hasn't paid their mortgage payments for 3-4-6-7 etc. months get out of their problem? By catching up on their payments or getting a modification of the existing loan. The bank/lender doesn't want the property they want paid. That's why the banks accept short sales. If you find a person who is within 30-90 days of the auction date without a viable means to pay the debt then maybe they will work with you. But, as mentioned by others, many properties get some type of modification, but not all. If you purchase the property on a short sale - you should be able to get a conv. loan or private loan prior the auction date if you're working with lenders along the way. I agree with some of the other comments - if you don't have a good option with these properties then stay away and attempt to buy at the auction or from the bank.

I'm not seasoned as most on this site with this option, but wouldn't a "subject to" be a good option on a pre-foreclosure? If there is good equity in the property and the deficient amount doesn't put the property over market value and you can come up with the back payments, interest and fees - wouldn't this be a good option? If all the numbers work out then you (buyer) would have a property I can rent and/or fix-up and possibly sell. This would also be a way to HELP the current owner with their credit. Thoughts?

Affordable housing in the Phoenix metro area is going away. I have been looking for a 4 plex for my son and I to buy while he's in college and based on the rents of the properties I'm finding 3 units are not paying the mortgage. Values have skyrocketed but for many properties rents are the same. I'm not sure how new buyers can profit on a 2-4 plex. I started questioning my math and based on several investors I spoke with they agree 2-4 family is off the table for them in this area. While I'm not completely in this market, I struggle knowing there are probably good families being pushed out because there is no longer affordable housing being constructed.  

@Timothy J. Cudjoe I agree with the honesty approach. But as you build your team your experiences increases. So you maybe new but the team has experience. Good luck.

@Bevla Reeves thanks sale still out there. Just need right buyer.

@Cam Jimmy fantastic way to go!!

@Greg Grant congratulations first one down many to go.

@Maya Rogers School can give you some education that may help with decisions. It can also help if you need access to MLS data. Lastly, if you find deals you don’t want you can sell them and makes some extra money. No downfalls. I don’t have license, but that’s my choice because I don’t want my realtors thinking I’m their competition. Good luck.

Mike M. I appreciate the words. I have bigger vision today than 6 months ago. Because of this forum and some local support I got over the problems of the first one and I’m looking forward to the future. 

Investment Info:

Single-family residence fix & flip investment in Glendale.

Purchase price: $140,000
Cash invested: $70,000

Complete demo and remodel property. Located property in historic neighborhood in Glendale.

What made you interested in investing in this type of deal?

This property hit my financial requirements from the start.

How did you find this deal and how did you negotiate it?

My realtor had a wholesaler and sent opportunity to me.

How did you finance this deal?

Hard Money loan

How did you add value to the deal?

Complete gut of the 1950's and Updated 1970's house and Updated with all new everything.

What was the outcome?

Still on the Market.

Lessons learned? Challenges?

This property had outdated electrical. When we started work on the electrical for the GFCI in the bathrooms and kitchen we found the property was not properly grounded. We ended up spending over $10k to do the electrical with a $2k budget. My suggestion would bring in a professional at the beginning to help assess the situation and give a good professional quote.