All Forum Posts by: Doug Haisten

From my direct mailing efforts to people just recieving their NODs (I get the information from a foreclosure reporting service i subscribe to) I have a number of letters that were returned non deliverable, no forwarding address. I checked some of these and the properties are vacant. I figure there is a high probablity these will go to foreclosure. I was thinking that until sale I can work out what repairs would be, line up a couple of investors/buyers (contingent on me getting the property), write up an offer, find out what bank is foreclosing and wait for the sale. I don't want to buy at the sale but if the property isn't sold I will have a offer ready to send to the bank that afternoon or the next day. WIll the banks accepts offers like this, before they even get a listing agent?

Doug

Just starting out I know that anytiime I have a question I can come here for guidance and answers. Thanks Scott and everyone else.

Renel:
I see a good deal of bank owned properties that have been sitting 6 months to a year without selling. With all the competition to get the property before the MLS I thought gooing to older listings, ones that people have forgotten, might be a good place to look for properties the bankswant to get rid of. They are on the MLS. How are you coming up with an amount for your offers? Are you doing the 65% ARV - repairs?

The early bird may get the worm but the 2nd mouse gets the cheese.

Doug

Scott,
I agree, with this property I would not make any money (repairs, carrying costs, selling costs etc) and I wouldn't do the deal. Still, I have avoided SS deals with more than 1 mortgage. Since there are a good deal of properties with more than 2 mortgages I was curious how it is done.

I am working on my first couple of SS deals. One of the properties has had a NOD filed for the 1st ($172K, 8 yrs old). The property has a 2nd for $120K (4 yrs old). The comps for the property are $198K. The homeowner wants to do a short sale that gets rid of both liens. I understand that the 1st is not taking the "haircut" with the 2nd staying whole. So to accomplish this deal, isn't the 2nd also doing a short sale? I realize the 2nd stands to loose everything if the 1st goes to foreclosure. If disposing of the 2nd is a essentially another SS, how do I handle this transaction?

Hey guys, so how do you get the listing agent to take a discounted price? I don't want to buy a property just to say i bought one but when I price it at what I think I can turn it around for (and make a modest profit), say 65 - 70% ARV plus repairs, the listing agents don't want to take the offer. Are the listing agent bound to take the offer?

I have just about finished my website and now will need a good way to funnel people to the site. I thought a simple newspaper ad would be a very good passive way to get sellers to go to my site. Can anyone suggest ad verbiage they have used with good results? What about for finding buyers too?

The ad would be used in conjunction with fliers, business cards, and maybe bandit signs.

Thanks,
Doug

Okay,
I got comp information from a realtor and that is a greatly different number, $236,500. The bank reports there is a balance of about $197K on the mortgage. After considering carrying costs, selling costs, repairs, back taxes etc there is actually a negative equity (over $11K). I quess I need to do a Short Sale on this.

I am working with a SFR owner that has just received his NOD. He currently is about $8K in arrears. The property is 29 yo and in good shape. Zillow values this property at $300K. The only mortgage is in the amount of $235,000 made 12/03. I calculate about $60K in equity, not including any repairs, carrying costs, or selling fees (when I sell it).

The property owner doesn't have the money to catch up the mortgage and he wants to leave town as soon as possible. I have been discussing an equity purchase with him. We are going to calculate the exact equity and split it 50/50. The equity calculation will take into account arrears to be paid and repairs/rennovations made.

After we sign the purchase agreement and wait the mandated 5 days, I would pay him $900 to begin moving out. Once out and after we do a joint inspection I will give him another $2K. The remainder of the equity will be paid after I sell the house. The $900 and $2K is an advance on his share.

Question: I don't have the money to buy and renovate the house and hold it until it sells. That being the case I would rather sell this to an investor. Can I list on the purchase agreement "my name or assignee" so the deal becomes the investor's and I take a $4K fee and be on my way or would an assigment give the mortgage company heartburn?

Is getting the fee this way against any law or requires that I have a license?

This is my first deal...what "holes" does this plan have?

Thanks,
Diver Doug

In this thread and others I read of saying to make relationships and make offers on properties not on the MLS. I agree with that and I am working on making those relationships. However, as I drive through my "farm areas" I see many REOs that have been an REO for months. When I call the listing agent I get the I can't submit that becuase it is too low and the bank won't accept a number that low. Furthermore, one of the LA has said banks aren't going to consider the 65 - 75 % ARV or they won't acknowledege rehab costs. Essentially he said the offer needs to be close to market and the banks don't consider the rehab costs either. I think he is taking me for a ride. Can I by pass the LA somehow?