All Forum Posts by: Shari Posey

I looked at the history of about 15 properties purchased by two investors. Actually, a look at the title report reveals a few of them appear to be short sales. However, I don't know how you can manage a short sale without putting the house on the open market without a little fraud involved. On my short sales the negotiator always ask how long the property was listed and how many offers I got, etc.

The bulk of the purchases appear to be at trustee sale at the courthouse. Evidentially the banks are accepting less than the bid amount, paid in cash on the spot. Most of the investors are turning them fast without much improvement to the property. In most cases at the court house and those that were acquired through short sale, the properties are going for about 50% of the amount on the first lien and of course the second is wiped out. In all cases, the banks would have gotten much more money than these investors are paying if sold through broker as an REO.

Since I don't have that kind of cash, I wonder if I could strike a deal with one of these guys to buy the house at the auction and hold it for me for 30 days while I get a loan. I would pay them a substantial holding fee for 30 days. I mean, if you can get a house for 50% off, even if the holding fee is 10% it's a good deal for a buy & hold strategy.

They are not part of a big bulk sale. I guess it could be a handful of properties at once. I personally know one of these investors and in the past 4 months he's had about 5 of these done and he won't give any information.

After the bank forecloses and before they even go to an asset management company. Somehow they get them in between these two stages at 50% of what the bank took it back for or would be taking it back for.

I don't need to know how to find REO listings or how to contact REO agents.

I want to find out how a few investors in my area seem to be getting properties inbetween foreclosure and the property going back to the bank. I have seen this happen more often and I can't figure out how they do it. For example, title will show the investor took the property from Recontrust Co. for 50% of what was owed on the first loan (second was totally wiped out). The investors then wait a few months until the property qualifies for FHA and then list it for huge profit. As far as I know, these investors are not buying with cash at the courthouse because the first liens are prohibitively high. Can you help me figure this out?

John, never say never. My first REO listing came from nowhere. I got an email with the listing. At that time, I had never done a single BPO. I got another REO from another company after I did my one and only BPO for that company and the first listing agent couldn't sell it. I sold it in 30 days and the AM called me a miracle worker but have not heard peep from them since.

I just closed escrow on a little property on Friday. I purchased at a 2001 price and at a 30% discount from the last comp sale in December, probably because I was all cash and the bank wanted to get it off the books. I feel absolutely fine about the purchase.

I can only speak for my market but there are tons of buyers. All the lowest properties get multiple offers. Again, lots of renters are seeing that they can just about pay the same amount in a 30-yr. fixed with 3.5% down as they are paying renting. (I'm not talking about luxury homes or upscale properties.)

I don't have any hard money sources. Would I get some from this board?

Where do you find a private investor in a hurry? The property is in NC. (He needs the money within about 2 weeks so a property sale isn't really possible but is possible for repayment of the equity loan when more time is available.)

Monthly P&I repayment over a period of 3-5 years or in full after he sells a property he is getting ready to put on the market.

Let's say an investor paid all cash for a property ($70,000) but now needs a little cash ($15k) pulled out. He's got terrible credit and is self employed. Are there hard money guys who can do this in a week or two?