All Forum Posts by: Eddie Egelston

Hi BP,

Are their any specific banks that give you a hard time with this? Is it possible to do on a short sale? When do you request this change?

Thank you for your input!

foreclosures.com

Yes, it's likely your phone; you might need PC for that.

Not sure what you mean by "credentials"... Realtor designations perhaps?

I'd recommend trying to find an agent already buying, or helping others to buy the properties you are looking for. With that you'd also want someone with good local knowledge, since you may have very little.

The trick will be to find an agent experienced and knowledgeable enough, who is also willing to spend time with an out-of-towner. A big POF would help. Sharing your track record and credentials would too.

If you manage to find this person, not sure why you'd want to use other agents too. That idea will not help you create any quality relationships.

Consider the median price in the area versus the price you are buying. You'd be a pretty big deal at $500k in my market, but pretty mediocre in others.

So offer $65k. The few fire damaged places I have seen sell for pennies on the dollar versus other fixers.

Average HML might not lend, so you'll need to shop around and see how complicated it might get. Bonus points for husband contractor.

 In old urban areas new builds are profitable, at least at the 1.5-3+ mil price point. Also it is supply and demand. If you are in an area of only older homes, and you can provide the market a new build, there can be a pretty premium on that.

Smaller = more horizontal leadership. If you're just looking to hang a license, it shouldn't matter.

"Brand name" matters maybe 1% if you will be trying to take on clients; 0% if you will be just working your own deals.

 2 Things at play there. #1 when a builder quotes a price to build someone a house, the builder is presumably quoting the highest price he thinks he can get for it, at that moment. Flash forward 3-6 months when he delivers the house, and the real estate market may have appreciated 10% annually. His $400,000 house might now be worth $420,000. And #2 home builders often incentivize people to plunk down deposits on new subdivisions early in the early stages. You can potentially lock in a "discounted price" early on, like get the same house for $390,000.

So combine the 2 factors, and yes you can be closing on a "$420k" house that you pay $390k for.

Formula is too strong of a word. It's addition and subtraction.

Create a spreadsheet or find one that allows you to enter actual line items, not one that guessimates closing costs to be "10%" of ARV.

The HouseFlippingSpreadsheet.com has the best one by far IMO.

I think it has an obvious question: How do you rehab when you have a tenant in place?

You could buy a dated house in an area you believe will be appreciating rapidly. Once you have the appreciation and cash flow use that to rehab and sell.