All Forum Posts by: Jim Wineinger

With all the recent growth, Josh is going to need to upgrade his site again to a computer that will rival that of the acclaimed SUPER COMPUTER of the government!!!!!!

Not that the recent speed is not great, but with all of us on at the same time it will require even more, soon.

I encourage all of you to upgrade, when you can as I just have done. Because even your networking outside this forum seem to start with the ideas we gather from reading this or that post, blog, article, bulletin, or press release. This will help Josh with his endeavours to keep this site as great as it is now (and even better, if that is possible).

Great work Josh, keep it up! Thank you.

I have noticed a lot of those properties available recently. Not quite as many units as you wanted, but some close.

It is certainly doable, as Will said.

Dave, you do not buy the notes at the courthouse. It is the place to go to learn about the notes (actually the trust deed that the note is attached to) and how they are recorded, and the terminology and how to recognize who is who. You then locate the noteholder to see if they are willing to sell.

This will also give you a data base of most all people (and banks, if you choose) that own notes and buy notes in your local area.

All leads come from those records, even the ones that you buy (leads) if you go that route because these companies have people (or programs) that scour those county data bases for the information that they can sell to others.

If you learn how to do this yourself, you will begin to notice when someone did not do things correctly, which demands a larger discount because you buy the note then correct the mistake.

You will be sure to let us know when it happens, wont you? I too have seen it close a few times!

Still having good numbers at 2AM est

990 users have been online in the past 24 hours, and 585 are online right now.

Check out this excerpt from one article that I recently posted!

Recognize any names?

The Federal Home Loan Bank of San Francisco sued nine securities dealers alleging they misled it about the credit quality and risks of loans behind $19.1 billion in private-label residential mortgage-backed securities. Among several dealers, Credit Suisse, Deutsche Bank, JPMorgan Chase, and Bank of America were named as defendants. The FHLB is seeking to rescind its purchases of the securities, which were rated AAA “based on the information provided by the securities dealers… the dealers made untrue or misleading statements about the characteristics of the mortgage loans underlying the securities…failed to disclose that appraisals were biased upward on properties that secured mortgage loans, that underwriting guidelines were ignored by originators and that loan to property value ratios were exaggerated. The Federal Home Loan Banks of Seattle and Pittsburgh last year sued banks including JPMorgan Chase, Morgan Stanley and Goldman Sachs Group. You can check it out for yourself: http://www.fhlbsf.com/

The VA loan wont go through if the appraisal only comes back at 50K and the homeowner still wants 73K.

The appraisal itself may be your bargaining chip with the homeowner to get his price down.

Your response should be "I may be young, but the (Army, Navy, Marines) teach us not to be gullible in pressure situations. I just cant pay more than the home is worth"

Dont forget to subtract the realtors fees, ect from the purchase price. Then you might even be able to reduce your "downpayment" amount by getting to him agree to wait for that amount to come to you from the tax credit.

It isnt IMO. It is not applied to any property since it is not associated with any one or all properties. It is associated with the business itself and is an expense of that business. It should be in the business name and capatilized or deperciated accordingly. As should be the trailer to transport it to those properties and even the vehicle to pull that trailer.

Dont take my post as saying your return will be greater than that 8%. The 50% rule is the best indicator of the return. It will take a lot of work, and the right decisions to do that. It is not the "guaranteed" return that most investors are looking for which is the passive type.

It is possible, but DO NOT COUNT ON IT or you will loose your shirt, for sure.

Then WHAT? control your expenses!!!!!

Since you paid cash and do not have the normal financial expenses AND if you do not plan to keep this long term. You will actually realize an annual increase in that return rate by that savings in PI costs when you actually do sell.

If that is to be two years from now you have the expense savings divided by that two years added to your 3,000 per year and it will increase the actual ROI by a small amount (maybe up to 10%).

And if you refinance in two years and keep the property, you would have the normal expenses of the finance (which you did not have at the time of purchase) so it is a washout as it was assumend to be included in the purchase financing costs by the 50% rule. This means that the cash out amount that you get will also actually increase the return part of the ROI equation, but has to be approiated over the entire time the property is owned. So in the beginning years it will look like the ROI increased a whole lot. But over the entire time you own the property (if long term hold) it will not increase it by a great amount.

These things are what might change this OK deal into a great deal in the end. It is the exit strategy.

Buy and hold as rental, long term and the ROI might be able to be increased to 10%, but proper cash purchasing, along with cash out refi (when available) alongside with short-term (2-5 years) sale will allow you to actually pocket the cash out refi, AND the amount of repairs expenses that you have not had to make (due to proper fixing up just after purchase).

This has the potential to actually double or triple the 50% ROI amount. So that 8.5% could be anywhere from 8.5 to 25.5 without even considering the appreciation amount (if any) at sale time into the ROI.

Usually the reason banks do not show up at these sales is that they have an opportunity at any time to pay those taxes as an "interested party". They do not wish to pay out any more money than necessary (which depletes their reserves) if they do not have to. By waiting until the lien is sold and they get the notice of such, they are hoping that things (economy) is going to get better and they will be in a better position with their reserves and or their other loans will cover the amount necessary.

If the investor bids an amount that covers all taxes and penalties and there is an excess amount that is acceptable to the bank, they may choose to allow the lien to go all the way to purchase and then they will claim that excess monies from the county. This not only saves them foreclosure costs but also gives them the redemption period to get their books in better order. It is a calculated risk on their part. The creditors that lost money and the homeowners are only ones who can claim that excess money.

But in any situation, if they do not pay those taxes they will lose the house that they did not want to begin with!!!!! The banks will not usually bid for their own houses since they are about to own them (the lower the bid the better for thier redeeming them) unless the bid gets high enough that the excess amount is an acceptable amount to them, then they may bid (not wanting to take the bid) just to get it even higher and more acceptable to them.