All Forum Posts by: Derek Faller

I hope it doesn't become like Austin or Boulder, but I do think home values will stay strong and continue to grow as more people continue to move here and we run out of room to build more homes in the UGB. If the City can resolve some infrastructure issues and finish out the Juniper Ridge area to attract more business to the area then things will really do well for Bend. Like Jay said the lack of a major highway and large airport will keep things somewhat in check. If you are able to cash flow your rentals then I wouldn't sell them now, though it is hard to find stuff you can buy and cash flow these days with the way prices have become.

I am sure with the location you won't have a problem renting, but you need to run the numbers to see if it is worth it. Property taxes and insurance are already high in San Antonio and then adding in HOAs might make your margins slim depending on how much you are paying for the condo and renting it for. Without knowing the numbers I don't think anyone can give you a definitive answer about whether it is a good idea or not. 

They can if they choose to take the commission. Usually they only pay the commission to the selling agent and sell the house for free. It all depends on the tax situation and whether you want to take the commission taxed at your normal rate or the gains on the house at Capitol gains rate or no taxes if it is your personal residence.

I am guessing that this part of your post was taken from an ad you found somewhere:

(I am selling my house $450k - cash buyers only or hard money

This is like brand new 2006 built -we are first owners. No repairs needed. White paint still all throughout since it was built.

4 br 3 baths 3 car garage ( tandem) I love the house but just need cash right now. We are going back to W Covina - our first house. You can sell at $550. Need to close the deal. If you want, while waiting on your buyer after buying, I can rent it so no sleeping money for the investor. I can help you sell it with 20 % ROI.

I am a licensed real estate broker

Do you have hard money? (Yes)

You can have 60-80% roi
I just need money
Will even help you sell it
We can close in 10 days")

It sounds kind of fishy to me. Why would a licensed broker sell you a house for 450k that is worth 550k and then offer to help you sell it for 550k? If it is true it seems like a good deal, but I would definitely verify the market value of the house and what you could sell it for along with having a home inspection done and title check and insurance to make sure there isn't something they aren't telling you.

When and where are your monthly meetups?

You might have a hard time finding an agent to help you as most don't like writing up lots of low ball offers. For one most are not going to be accepted so it is a lot of paperwork that they know will not result in anything. It also tends to give them bad reputations with other realtors. I don't mind writing low ball offers here and there, but if that is all I do listing agents are going to dread seeing me show their house. Also like you mentioned there is also the concern that the sale will never go through if you don't find a buyer.

My suggestion would be to find a newbie realtor or a fellow investor that has a license and work with them. New realtors generally don't have much going on so they might be more incline to help you out. 

If you are planning on selling short you need to be substantially behind on your payments, and be able to show some sort of hardship for why you can't afford to make the payments anymore. To go along with that you need to prove that you can't make the payments. So if you have a bunch of money in other houses or mutual funds the banks will call BS on you. That said it will hurt your credit pretty bad and you won't be buying anything else for a while, though it is better then a foreclosure.

A realtor isn't going to be able to market and sell a home on the MLS that you don't own. When you wholesale you just have a contract with the owner that gives you the option to purchase the house at a specific price. You don't have ownership interest in the house at this point.

They would be able to help you buy vacant non-bank owned homes, but you would need to factor in a 2.5% to 5% fee for them to do this for you. Banks typically won't sell the homes they own until they are ready and they list them with a realtor. So even a realtor won't be able to help you much with these.

Bottom line is a realtor isn't going to be much help to you as a wholesaler.

If you don't have credit that can make it hard to get a loan. You may have to get a family member to be a cosigner on your loan. If you can't get a cosigner you may have to wait and build up your credit a little bit before you can buy. Another possibility would be if you could find a seller willing to do owner financing for you, though they are hard to find these days especially in a hot market like Bend. Have you already talked with a local mortgage broker about getting a loan? It doesn't cost you anything to talk to one and they may have some good suggestions for you. 

I am also in Bend and know the market pretty well. If you have any more questions feel free to reach out and contact me.

I am with Wayne, I have never heard of a refusal to list letter being used in this way. If the owner dies and there in no heirs there is no short sale as the house would now belong to the bank. It would then eventually come on the market as a REO property. Banks don't like to negotiate sales of homes that they haven't sent out to be listed for sale yet.