All Forum Posts by: Christopher Phillips

@Elissa Winters

Attend real estate investor association meetings in your area. Show distressed properties to buyers.

@Simon Obas

What are you buying?

@Ramon Mota

Just have the conversation about your goals and methods. Your current agent will tell you if they are interested or not.

@Richard S Myers

Not impossible. You would need to line up the lender willing to do it. Builders work off of deposits and you would need to line up a lender that will work with construction to permanent FHA loans.

@Kenneth Wiley

Mortgage and deed of trust are different things. Some of it depends on what’s the norm in the state you’re in, but any state could have one or the other on a transaction.

A mortgage is essentially a promissory note that secures performance to pay in exchange for property.

A deed of trust is similar, but a third part as a trustee files the paper to hold a deed with the lender as the beneficiary if the borrower stops paying and goes into default.

A mortgage bond is exactly as described. Mortgages are packaged together and turned into a security that can be bought or sold by investors. The average person never has to worry about the mortgage bond.

@Phil Hucke

You typically can’t get traditional financing on highly distressed property. Rehabs should really be in the 6-8 week target range. Time is money when it comes to flips due to the carrying costs. The longer it takes the more money you’re losing.

Traditionally, you would use hard money, but many might not want to get involved under $100k. So, it will depend. Some might do for 65% after repair value which would be in the purchase and repair value range you’re looking to do. You’ll have to fund closing/points out of pocket to have some skin in the game.

Other option would be to find a partner that can fund everything with cash.

@David Le

Closed on a house for some buyers recently that the seller/agent rehabbed. Had been in the market since last summer. He did a refinance into a traditional loan last February while we were still negotiating. Just closed in May.

Refinancing would be a good option, it would buy you time to get it sold and protect your profits, and would also reduce the interest rate instead of paying the hard money rate.

You’re welcome. Always happy to help...

Yes. Your agent can submit on your behalf. They usually need to if the auction property is on the MLS.

Depending on your total preapproval amount, the buyer’s premium can be added to your financing.

@Melvin Kim

Depends on too many factors. If they had a will or not, which state the homeowners lived in, how many heirs are in the picture, how many other assets they have.

In a simple scenario, there is a will and now an heir owns it. You would have to try and track down the heir or wait for it to come on to the market. Sometimes heirs hold onto things, sometimes not. Sometimes the heirs just can’t decide what to do.

Could be no will and the house will have to go to probate and settle their debts. The process depends on the state.

Could be they have a reverse mortgage and the bank will take the house if the heirs don’t pay off the mortgage.

Could try and check the obituaries. They often name surviving kin. Could check white pages and other sites, they usually list relatives.

Yes. That's high. It's usually 2% - 4% higher than normal residential lending rates. Residential rates just dipped below 4%, so 12% for 15 year amortization is a bit steep. I see things like 6% 30 year amortization with 5-10 year balloon payment. Period depends on the age of the owner, usually.

You have to figure out what the owner really wants. If they are looking to spread out their capital gains over a certain period and get some cash flow, counter at something that makes more sense for you. If the owner is just trying to take advantage of people that can't get a loan on their own, then you have to decide what's best for you.