All Forum Posts by: Danielle C.

Hi all,

I don't see very much discussion in the SS forum when it comes to selecting a few farm areas. I could use some tips or suggestions for this. I intend on retailing these homes, so won't be looking for too much rehab.

I need to find a low DOM however what is considered low in this market? Under 120 days? Under 90 days?

Since these will be retail most likely to families, I will look for lower crime and better schools. Is there such a thing as too nice of an area that could make it more difficult to short with the banks because the surrounding value?

Should I look at the median home price versus the average income? If so, what ratio should I look for?

Is there a "magic" number for arv? For example, homes that arv at 250k or 300k retail best?

Also, what % home value decline should I look for in the past year? There are areas where the average decline was 7% and areas where it was 15%. All areas saw solid growth (ie home sales) in the last 6 years and have near 10% unemployment, so there are plenty of underwater people who are very unfortunatey behind on payments.

How large should the farm area be?

Am I placing too much empasis on the above? For example, are your parameters more loose and you just do a pre-NOD search on several zip codes?

I am located in the Chicagoland area, so I can go 30-45 minutes in any direction and find almost any type of community. Perhaps that is where my hesitancy comes from. There are alot of options here.

Thank you for your suggestions!!

Danielle

All excellent advice... !

In Illinois the foreclosure process takes a minimum of 10 months. In the Chicagoland area, we actually bucked the national sales trend in the previous quarter, in which 33% more homes sold over the same period last year.

So if Citi is obtaining these homes 4mos faster than foreclosure and selling them at a discount where a makret is beginning to pick up, then then they are making a good decision.

With that said... why not just short it out with a 2 - 3 month process at the discount they would move the REO for? This way they are not losing payment for 3 additional months and potentially having other issues (damage to property, homeowner who refuses to move, further home price declines, etc.).

It's a step in the right direcion for homeowners, however still not close to a solution or cure. They should move these properties as fast as possible. Lose the non/ slow performers, tighten lending requirements (which they've done) and ride the storm with a fitter vessel.

Danielle

So if Lafi wanted to proceed, he would need to bring an RE agent aboard and have them complete the negotiations or would he just be able to have them submit and he negotiate? Just curious... seems like BoA is doing all they can to not change with the current housing situation.

Danielle

Welcome Max!

I am located outside of Chicago in the Western suburbs. It's always good to someone new from my area.

I believe that you will find everyone very helpful here at biggerpockets. There are many experienced and knowledged investors, agents and lenders on this site.

Don't hesitate to ask any question that you may have. Personally, I found that the search feature is an invaluable tool and worth more than what some "gurus" charge for an entire "system".

Good luck!

Danielle

Hi,

I searched a few companies on the net however didn't find any that were prices well combined with quality service.

I found signwarehouse.com from an older post here (the archives are priceless!) and their pricing was pretty good. I called and spoke with a sales rep who gave me a better than advertised price... I purchased 50 signs and stakes, including shipping for just about $90. The shipping was 2 day UPS with tracking numbers.

Being newer myself, I'm certain that there is a better deal somewhere, however I was extremely satisfied using their services and intend on continuing to do so.

Good luck!

Danielle

Danielle

Congrats!! It's great to hear about others who are making their first deal. It gives the rest of us who are just beginning alot of encouragement.

Thanks!

One of my favorite quotes is that there is more than one way to skin a cat... and to get your foot in the REI door, I think you have to know 50 ways to do it. You've just given me another way to get to a buyer! I'd have to say, I would most likely employ this if I found that they purchased multiple properties in the last few years with cash or something that makes them an excellent candidate.

Thanks for the input - this really is what I love about this site: I would not have found that suggestion anywhere else!

Danielle

You know Steve, I would aaalmost buy that if there actually were recordings about the properties... however sometimes there isn't even a personal greeting, just an automated voice saying what number you reached. And on those that I left a message for? Still haven't heard from them. You would think, I know this sounds crazy, that someone who owns rental property would actually - wait- want to rent? :D

Lol, I suppose it's their business, they can run it however they want.