All Forum Posts by: Elijah F.

you stated you own the property free and clear and that if you sold it you would potentially net $102k on this $1MM property. why wouldn't you net closer to $1MM if its free and clear?

@James W. did you buy an REO or a property at auction? If REO, was the redemption period disclosed prior to your completing the purchase?

Review the house rules of possible. These can make a condo a headache to maintain and manage. Condo board members could also make life difficult or pleasant but you wouldn't know unless you inquire from current residents.

Thanks for the update. Great to hear of your success.

Can't offer advice on how to make this deal successful but I do have some thoughts you may want to consider in the future. Do you have $70K in cash to put in? Hard money lenders usually lend 70% to 80% (rare) on properties. Some will consider ARV, but most I have spoken with use purchase price. I don't see a two day turn around happening in this case, especially since it sounds like this is your first time with this type of purchase. Hate to beat a dead horse but you should have had this all figured out before bidding at auction. Also, do you have a lawyer experienced with this type of eviction? What's the usual time frame for these situations?

I'm going to follow this discussion to see how it turns out. If you can make this deal work that would be an impressive achievement.

I disagree in part to @James Carlson that online mortgage calculators aren't reliable. They can certainly give you a ballpark figure to start with. Original post mentioned a home purchase price of $857K. Using an online calculator will reveal that price to be way out of reach.

Also, going to a lender will lead to a similar estimate unless OP seeks a mortgage pre-approval which could lead to a hard pull on her credit.  Unless OP has found a unit she wants to make an offer on, additional credit pulls outside of a 30 day window could be detrimental to her credit.

I like to go into a situation having done some homework, so for me, an online calculator provides me some info on where I stand.

Even then, when it comes to mortgage approval, it's the underwriter that has gives final say. 

Some thoughts I have.

Co-signor will be financially responsible if you default on the loan (https://www.fha.com/fha_article?id=239). You should let them know that up front. A credit pull on them will also be initiated. Not sure how them living in Guam affects the co-signor process.

Use this calculator to determine how much home you can afford (http://www.bankrate.com/calculators/mortgages/new-...). Running some quick numbers, an $800K plus home seems out of your reach even with an FHA loan. FHA will not include potential rent when approving your mortgage. FHA is also more lenient on credit scores. I would recommend getting a credit card and paying it off monthly if you have the discipline to not abuse it.

Foreclosures can be tricky. Are you looking to buy a house in foreclosure or an REO home? There is a world of difference. I studied foreclosures for a long time in my area before purchasing. One oversight that may seem minor can lead to a huge financial loss.

I envy you starting young in this business. I would have loved to begin investing at your age. I wish you the best and don't want to dampen your enthusiasm, but want provide some reality to your musings.

@Jamie Robertson welcome aboard. Are you looking to purchase in state or out of state?

Thank you @Brian Adams for sharing your success story. It's very useful to see what others have done to be successful in this business. 

glad things seem to be progressing in your favor. excited to hear how it all turns out