All Forum Posts by: Chris C

I have not seen a lot of discussion on this topic. Subject to investing?
Could the end be near for this type of investing or is there a work around to the new law that may be passed.

For those that are not up on the law that is in the Senate now awaiting a vote, the biggest change is that any subject to deal will require written approval from the lender. We all know most lenders will not give written approval.

So, my question is, has anyone thought about work-around’s to this? Will this type of investing exit our creative financing bag or can we do an owner financed deal (Wrap-Around) and make it work..

Just opening this up for discussion.. I would like to hear everyone’s thoughts on this subject please.

Thanks
Chris

Josh,

Thanks for the welcome message. I am going to enjoy this site.

As far as my local lending market..Very Busy, Taking apps that is but, values are way off from the high's.. Closings are down from last year.

I am investing in SFR they tend to give the best return in my market.

Look forward to taking in the furture..

Welcome Mark!!!

My May goal:

Make at least 1 Offer to buy a SFH. Fear has been my road block.

The fear is gone I made 3 Offers all Low Ball Offers.. I may have presented low ball offers because of my fear...I think that is true but, Good for me because I had one accepted... Buying a SFH for 47,500, ARV..115,000 needs 12K in rehab...

Baby steps...

Hi Everyone,

My name is Chris I am a beginning investor from Pasco County, Florida.. I have been in the mortgage industry for more that 15 years. I look forward to all the great info on this site and a very profitable 2008-2009. Thanks

UPDATE:

2 of the 3 offers were Rejected w/o counter.. One was accepted.. Listed for 79,900 I offered 47,500 and they accepted it... Even my broker was shocked...

ARV: 115,500

Thank You all for your replies..Much Appreciated.

After readiing the posts last night I put the pencil to the 3 offers I made and found that in one case I can offer much more end up about 80% of asking price and still have the deal cashflow for long term rental or lease option.
As for tje other 2, true value is around 120-125K. If I am willing to wait for the right buyer.. I want to price the property for Quick sales.. So 100K is the #.

Question is when I come across this situation...When the property is worth 120-125K but may sit awhile vs pricing it at 100K to sell quick..I am assuming I would use the lower sales price and keep making offers..

I am seeing a ton of properties on the market.. I understand what is being said as far as low balling the bank but, after average repairs on the properties I would own them at about 70% of the ARV. Am I crazy? Don't I want to own them at that figure?

As far as getting properties from my marketing... Question there is most of the distressed properties are they not over mortgaged from all the refi's in past years and the average loss of value of approx 20-40%.

So the question is what is the answer.. What is the best way to purchase properties in this market... Using Hard Money...Lease Options...Subject To... Conventional Financing... What ever is working..

You are the best of the best out there.. Any advise is greatly appreciated..

OK, I took the plunge..Made 3 Offers on MLS properties all 3 Bank Owned.. First realtor put the offers together and sent contracts to me to sign along with an email comment that don't expect the offers to be accepted and don't expect counters..

The other Realtor laughed at me when I gave her the offers over the phone....She said she is selling 20-25 REO propertiers monthly at an average of 85% of asking price....She said she would make verbale offers.

Here is what the deals looked like.. First house ARV..115K if I want to take a yr to market...Quick sale after rehab 89,900..Needs 12K+ in rehab listed for 79,900 I offered 47,500...2nd again quick sale 89,900, listed for 69,500 needs Min 22K in rehab. I offered 37,500, 3rd Quick saled 85,000 listed for 64,900 needs 12-15K in rehab I offered 37,500..

Couple of questions: Am I putting offers in that are to low? Do I need to make more realistic offers? Am I using the wrong Realtor? (Used listing Realtor on all 3). All 3 of these properties could be sold for more that I have shown but I am looking for a quick sale no long term wait. Also I am using Hard Money @ 65% LTV.

Advise please...I would like to hear from the Pro's that are making offers on MLS properties... What can I do to inprove my odds?

Thanks In Advance!!!!!