All Forum Posts by: Joel Owens

In my area our MLS gives the brokers and agents data on rents,average concessions given,and the time it took to rent the property.Also shows expired's and with drawns and actives to show what renters will pay.

When you have a rental you have to know if the property presents badly,has no marketing exposure,is asking over priced rents or all of the above.

If you buy right you will be able to cure all problems. If you overpay you will be in a world of hurt.

Spring and the summer might go fast when you buy you need the flexibility to rent year round at great rates and still cash flow well.

You don't buy based on getting a high market rent if you turn the lease at the peak of renting season.Instead base on conservative numbers and if you rent at the peak it's a bonus.

Kathy,

Sounds like a seller that doesn't understand what as-is means or contract law.

On this board we can't see your contract and one word can change everything in a contract.If you are referring to your earnest money deposit it depends on what would be in the contract as to what your rights are.

Is the earnest money refundable or non-refundable under any circumstances.Was this not earnest money but an option fee??

Disclosure is a separate issue from earnest money but sounds like the route you want to try to get the money back.

You might benefit from a legal review of your contract by a real estate litigation attorney.

You won't find legal representation on here for free to get your 5k back.

no legal advice

Providing the lead based paint disclosure is a Federal law.

I am not in Florida but everywhere I know selling "AS-IS" doesn't give you free reign to not make proper disclosures or material facts known about the property.

"AS-IS" is saying you are presenting the property without any warranties and you will not do repairs and it's upon the buyer to inspect and conduct due diligence with the property.

If you don't disclose a known material fact or give proper disclosures required by law you can still be sued for damages and lose.

Usually banks that have foreclosed and estates have never lived in the property and cannot fill out a sellers disclosure or warranty it's condition.The seller still provides proper mold,lead paint disclosures etc. that they get the buyer to sign to protect themselves from future litigation.

no legal advice

If brokers and agents followed the bpo companies rules values would not be influenced at all.

Having said that there are brokers/agents who get kicked out of BPO companies for this very practice.

Most companies have an electronic signature form that we have to sign before submitting the finished BPO online.It says in a nutshell that we have not talked to,taken comps,relied upon ANY investor,contact,seller information etc. to influence our value and that we have inspected the property and pulled the comps ourselves.

BPO companies (mills) are really tightening down the standards as they are competing against other mills for large institutional orders.

The local to regional banks use brokers/agents more on a direct basis than the national banks that farm most bpo's out.

So you are just selling off a note for one trailer??

Do you own the land as well?

If it's just an old trailer they have very little to no value and are very expensive to move.

More details.Thanks

Have a deal I am looking at right now.It's a 60 unit apartment building.

Full stabilized will generate an NOI of 155,000 a year.Currently right now at 45% occupancy at NOI of 79,000 a year.

Purchase price would be around 450k to 500k.Buying on the low basis I would reduce rents from 460 a month to 400 to increase occupancy.

Resale at a 10 CAP will have a value at 1.5 million.Let me know if anyone can partner with me with cash or can do a loan.

Anymore info just ask.

Currently I am signed up with about 30 banks and counting with direct contacts to the commercial special assets vp's and directors.My goal is to sign up with a few hundred more.

Most distressed properties released by banks are lots and raw land for which they see no recovery followed by mom and pop type stuff.

2011 I believe more of the bigger stuff will hit the market more frequently.

Goal is to do at least 30 million in transactional volume on real estate deals as a broker and then purchase a few investments of my own.

Between triple net,apartments,and bank distress deals I believe my goals are achievable.

That will be really tough.Part-time agent as an investor equals high liability for a broker and intensive time training them in most cases.

I get many calls from agents wanting to park their license with me or they do just a few to no deals a year yet the real estate commission requires me to keep a ton of paperwork on them.

At the highest I had about 50 agents but have pared that down considerably to work on my own deals.I still have some experienced agents that I don't have to spend too much time on.

So do you want to be an agent or just an investor??

You need to not get so heavily invested in this one property. Before being on the commercial side I was doing mainly short sales on the residential side about 4 years ago.

The real estate commission and many others didn't even know what they were.In a appreciating market lenders won't do short sales usually as by the time it forecloses the asset has improved in price to cover more of the lender costs.

I will tell you in short sales you can't make sense out of non-sense.

I have had a short sale listing where we received 10 offers at 105k.An out of county agent did the BPO for the bank.Comps used were horrible.

Bank rejected all the offers and went to foreclosure 2 months later.Re-listed as REO in month 3 and sold for 69,000.

No sense but whatever.Sometimes the investors who own the loan think they have a diamond and it turns out to be a lemon but takes awhile for them to see it.

2 years is not uncommon to hold up.Many times the investor would prefer to do a workout and put back payments on the loan then to take a big loss.

Example rather than foreclosing and taking a big hit investor opts to reduce the home owners interest rate down to say 3% and then roll in the past due fees.

So loan at 8% at 200k now you reduce to 3% and roll in 40k in back fees plus the servicer still makes fees off of the loan.

Some states are very expensive to foreclose in as they use the judicial process.Also many lenders were using MERS to record documents and attorneys for the home owners can sue to show the foreclosing party doesn't have a legal right to the property.

If a home owner knows their rights they can drag it out for years and years.A lender defending a lawsuit in court can costs hundreds of thousands of dollars over time.

A good publication to read is www.mortgageservicingnews.com

Go Here:

http://www2.fdic.gov/idasp/main.asp

Type in State and set display results to 100 per page.

Over 191 banks in Tennessee and I am sure one might lend to you.You just need to hit the phones.Ask quickly on the phone that you have an LLC etc. and do they offer any programs.

Every bank is different on what they will and won't do.It depends on how healthy they are,the mix of loans on the books,and default levels of each asset class.