All Forum Posts by: C Rich

For most properties, lenders won't do a deal if a property needs work. Choices are HML or local banks. If you didn't want to deal with that, but have good credit and a 'charge-a-plate' (hee hee), have you ever purchased on that card and refinanced.

I'm thinking that you've got more leverage in a deal once you've secured the asset and should have no problem refinancing. Has anybody done this before?

What was your experience?

Oh... Good luck on your deal! I can't read the specs. I'm unprivileged to see the forum now that you've brought it to my attention, but I bet we're in the same boat.

My bad! Technically, I didn't though. I just need input on success/failures when being nudged by those getting paid on commission as to whether my offer wasn't already my be st and highest.

Based on the deal, I come up with my best was already offered. However, I'd hate to lose the deal over some crooked asset manager, real estate agent or listing agent pulling in a bid for my offer plus $1.

I've seen some people insist that buyer side stuff gets written into the contract to say they'd beat any bonafide deal if the deal was presented in writing. Need more info on how that has worked out since everybody's got a new-scam-a-minute to bid bid-rig.

Best of luck to ya! If all works out as you planned, please post details.

I am in a situation where my previous offer was neither rejected nor accepted and the winning bid fell through so the property is back on the market. My R.E. agent is advising me to submit my 'best'. I'm sticking to my original offer which I found fair considering the work that needs to be done and since the listing agent didn't 'reject' it.

Am I shooting myself in the foot?

I like the property and see it as a money maker, but I won't be conned into overbidding or bidding against myself. The only monkey in the wrench is that the property purchaser type (i.e., OO or Investor) makes a difference and I'm not in the 'preferred' category (OO).

Sorry to be such a newb with this question, but what are you using this information for? Where are you getting your lists?

Business! Alternatively a law degree.

Also, like others have said, you won't need the degree for r.e. since the license is worth more over time to the regulators (c.e. is required for that profession).

I, too, am thinking about delving back into the r.e. licensing side in order to purchase and because generally I like it. Online classes are available for that, but coupled with a Business degree, you can't go wrong.

@Corey -

One reason for this could also be that they need to slow down as their money dries up. Since the banks stopped investor lending (or at least slowed it down), the HML lenders are booming.

When I was looking for a loan to purchase investment property, 99% of the advice was to seek HML -- and that came from the bank personnel and the real estate agents!

I didn't like the terms of HML, so looked at local banks and found that there are still some that provide investor loans for r.e. They look at the entire deal and they also pull credit, verify tax returns, yada yada. No biggie since the credit is not what determines whether the deal makes sense.

The reason I rejected dealing with HMLs is for the very same reason the posters above stated that the HML needs to pull your credit -- knowing who you're dealing with.

I found that a lot of the HMLs attitudes and responses left me uneasy as their questions went outside the typical questions related to a borrowers ability to repay and began delving into too many specifics about the properties I was finding. Those questions should have come much, much later. I didn't trust them with that info. After trust had been called into question, I looked elsewhere for money.

Basically, the HMLs got so nosey in their initial contact interviews/questionnaires I actually thought that the HML guys may have a side business of collecting info to feed to their "preferred" contacts about the good deals I had found which would result in them competing against me and not paying me for finding.

Went with a local bank who couldn't give a chit about selling or giving away the info to secure new "relationships" and care only about making money for the bank -- which is already capitalized and regulated.

@Chris -

I'm sure there will be other opportunities for us to disagree.

I see you are an HML and I am sold on banking with real, live banks with branches and employees that offer much more favorable terms to R.E. investors. The local banks in my area offer 5-6% currently to investors as compared to 11-18% HML. In your area, things may be different.

All the R.E. agents seem to push investor buyers to HML, but I knew there had to be something more favorable out there. I rejected HML as an option for my deal since I didn't like their terms or their attitude.

@Chris - Your article link backs up my opinion.

"It's not unusual for banks to prune 5 percent to 10 percent of branches for demographic, competitive, cost and other reasons, said Thomas, the bank consultant, who runs branch location.com . Often customers can be diverted to nearby branches, he said, but if a bank cuts too deeply it can lose a precious commodity: ******low-cost deposits.***********"

"In coming years, he expects branches to shrink in size and staffing, as banks increasingly use technology to serve customers." In other words, bankers are replacing their employees with kiosks and you might as well get used to it.